Posts Tagged ‘debt consolidation’

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Debt Consolidations Loans can save you money

Friday, March 12th, 2010

Debt comes in many shapes, styles and sizes, from credit card bills, overdrafts and store cards to mortgage debt, unpaid domestic bills and all manner of other types of loans and borrowing. The various ways that you can borrow money and end up owing it are almost endless. Those different forms of debt each demand differing interest rates, with some forms of debt being much more expensive than others. For example; you might find that the interest you are paying on a store card or credit card is far higher than the interest you are paying on a mortgage. Though the amounts are you are dealing in are financially smaller, the rates you are actually paying might be far greater. Clearly the lower the amount of interest you are paying on your different loans, whatever amount of money you might owe on them, the better. This is where debt consolidation loans can help you out.

If you find yourself in debt but not severely, then debt consolidation might be just the thing to help get you back on track – a single loan that will cover everything. If it is simply a case of cutting your interest rates so that your payments become manageable, then debt consolidation loans can offer a quick and clean debt management solution. Maybe your income has reduced and you are unable to meet existing repayments. Again, debt consolidation loans can make them manageable.

The best debt advice when considering even unsecured debt consolidation is to budget as carefully and as accurately as possible. If you budget incorrectly or your circumstances change for the worse and you fail to maintain your consolidated repayments, you might quickly find yourself in trouble and facing insolvency. In the case of consolidated debt secured against your home you may even lose your house if you fail to keep up with the repayments.

Take a close look at your existing commitments and understand clearly how much you are being charged to borrow. There are plenty of professional organisations that will be able to offer impartial debt advice and help you compare the current costs of your loans against the cost of debt consolidation. Debt advice is only a phone call away.

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Why free debt advice is the best debt advice

Thursday, March 4th, 2010

If you have found yourself with a debt issue that you want to get resolved as quickly and as painlessly as possible and are seeking debt advice, then you will want to know that the debt advisor you are talking with is an impartial debt advisor. Why? Because only if the debt advice that you are receiving is free debt advice, independent of any commercial bias or influence, can you be assured that it is the best debt advice available. In a situation where you have found yourself owing money that you are having difficulty repaying, it is vital that in order to manage the debt properly it is your best interests that are being reflected in the debt management decision making, and not anybody else’s best interests.

First things first though – the question of whether to pay for debt advice. If anyone does try to charge you for debt advice just politely turn your back and walk away. They’re wasting your time. Don’t let them try to waste your money too, especially if you haven’t got any to waste. No credible debt management agency worth its salt will charge you for advice.

Then again just because the best advice is free advice don’t be fooled into thinking that all free debt advice it really is impartial. After all doesn’t everyone offer free debt advice? The question to ask yourself is – is this free debt advice I’m getting, IVA advice for example, just a way of guiding me towards an inappropriate debt management product? Is it really debt advice that I can rely on and trust? Who am I speaking with? An experienced, well trained representative of an independent agency who can advise on my best course of action, or a salesperson who’s trying to guide me towards the most lucrative commission?

Confused? You needn’t be. There’s plenty of impartial debt advice UK wide that can prove a great starting point in helping you manage your way out of financial trouble. From IVA advice, advice on bankruptcy, debt consolidation and Debt Relief Orders, there really is a wealth of knowledge and know-how out there.

At DAT we already deal with more than 100 people a day, offering them independent guidance and advice to help them get to grips with debt problems. Maybe we can help you too.

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There’s IVA advice and then there’s IVA advice

Friday, February 26th, 2010

Individual Voluntary Arrangements (IVA) are an increasingly popular form of debt management. In fact the number of people choosing to go down the IVA path leapt a massive 20% in 2009, as those struggling with their debts opted to try and avoid full-blown bankruptcy and instead take advantage of the more flexible IVA route.

If you have run into financial problems and are finding that despite your best efforts the debts are starting to mount and it’s becoming ever more difficult to make ends meet, then perhaps an IVA is the way forward for you. The best way to know for sure is to take properly qualified and truly independent debt management advice.

There are certainly plenty of organisations out there offering help. A quick search just on Google will return a bewildering number of options. If you are seeking IVA advice or advice on the Scottish equivalent Protected Trust Deeds, then do take care that you are getting the best impartial guidance possible.

The sorts of things you should be looking at include whether you might be entitled to an IVA in the first place. As IVAs tend to be most appropriate to people in serious debt owing in excess of £15,000 and struggling to meet repayments, then it may be an unnecessary step for you to take. There are a variety of possible debt management solutions; debt consolidation for example might be a better option. It all depends on your particular circumstances, the amounts you owe, who you owe them to and your ability to come to a mutually acceptable payment arrangement and stick to it. You can only really get to the bottom of things by talking with impartial debt management experts.

If you do decide that an Individual Voluntary Arrangement is the best way forward then the obvious next questions are – who is the most suitable IVA provider? And how do you go about setting it up?

Again, what you really need is trained, experienced independent advice to guide you in the direction of the most appropriate debt solution from the most a reputable and reliable provider.

Don’t rush into things, take your time and make sure you get the advice you need.

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Why are so many people turning to the Citizen Advice Bureau (CAB) for help?

Monday, February 22nd, 2010

The simple answer? For no-nonsense, common sense debt advice.

The recession has had a devastating effect on both business and personal finances across the country. Workforces have shrunk (at the height of the downturn as many as 3,000 people a day were being laid off) and up to 50,000 companies and 150,000 people became insolvent during 2009. One organisation that has experienced record amounts of work during these toughest of times has been the Citizens Advice Bureau.

UK householders and businesses in their thousands have turned to the Citizen Advice Bureau for help and guidance on how best to manage their debt. Debt advice, it would seem, has been one of the very few growth industries in these torrid times.

Reflecting on official Government debt advice; the sort of common sense help offered by the Citizen Advice Bureau includes their 10-point recession-beating Citizens Advice guide:

  • Don’t bury your head in the sand. If you have a financial problem face up to it and start dealing with it as soon as possible.
  • Take informed, independent advice.
  • Pay priority debts first.
  • Budget and plan.
  • Look hard for savings on all your bills.
  • Check to see whether you are entitled for benefits.
  • Whilst debt consolidation can be a good idea, don’t jump out of the frying pan and into the fire with exorbitant loan interest rates.
  • If you have mortgage issues take advice and deal with them quickly.
  • If you lose your job be sure to check your legal rights.
  • A property in the UK is repossessed every 11.2 minutes. Don’t become just another homeless statistic. If you lose your home or your home is under threat you may be entitled to help.

Over the years, Citizens Advice has established a formidable reputation as the ‘people’s champion’. What the CAB doesn’t know about debt management isn’t worth knowing. When it comes to the Citizens Advice Bureau, UK consumers can count themselves very fortunate. Armed with their expert, impartial advice you can begin the important job of getting your debt under control and you finances back into shape.

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Why debt management puts you back in control of your finances

Monday, November 30th, 2009

If you’re in debt, everything can seem to spiral out of control very quickly. Rather than seek debt advice straight away, the temptation is to just let things coast along and hope that it won’t get any worse. Trouble is, adopting that ‘ostrich’ syndrome means that your finances are out of control and will continue to be so – unless you take control back and seek a debt solution.

Debt management is exactly what it says it is – managing your debts and getting them back under control. The first step is to realise that you can’t let the situation carry on in its present state any longer and to sit down, with a debt management expert if necessary or speak to the national debt helpline, and take a good, hard look at your finances. Make a list of your major creditors and then get in touch with them. By contacting them and informing them of the situation, not only will they be more willing to negotiate more manageable repayment terms, but you will also prevent them from sending you those dreaded final demands every day.

Work out your outgoings as compared to your income, but remember that you have to leave yourself something to live on otherwise the spiral of debt will get worse. Prioritise your creditors (don’t forget the little guys, but at this stage your major creditors take priority) and allocate a certain amount of your income towards paying them off first. You may not be able to write off debt but once things are on a more stable footing and you’ve taken control back, it’s easier to work out payment plans that will help you to clear the debt more quickly.

If all of this seems daunting and you’re still in a panic about managing your finances, talk to an independent debt counselling service. They’re specialists in debt management and may know some ‘tricks of the trade’ to help you control your money in a more manageable way. Never be afraid to ask for help.

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Why an IVA debt solution could help you with serious debt

Tuesday, November 24th, 2009

When serious debts are mounting up, many people fear the spectre of bankruptcy and the devastating impact that can have on your finances, your credit rating and your life as a whole. But seeking debt advice from an independent debt management service and applying for an individual voluntary arrangement (IVA) could be a better way to achieve unsecured debt consolidation on credit cards and personal loans, making repayments more manageable.

An Individual Voluntary Arrangement is a contract between you and your creditors. You pay an agreed monthly sum, usually for 5 years. This is divided up between people you owe money to, who accept the sum in settlement of the amount you owe them. Once the term of that IVA is over, you have the chance to start afresh without the impact declaring yourself bankrupt can have over the long term. Unlike bankruptcy, an IVA does not prevent you from running a business so if you want to start up your own business during the term of the IVA, you can. It could be a way of getting yourself out of debt and back on your financial feet much more quickly.

The first step is to get some IVA debt help – speak to the national debt helpline or to any one of the specialist IVA companies in the UK. In essence, IVAs restructure your payments to creditors so that they become more realistic and effective, putting you back in control of your finances. By opening the lines of communication and sticking to an agreed repayment plan, you reduce the amount of pressure that is often placed on those in debt by their creditors, making life much more manageable.

Bankruptcy is a last resort debt solution and, even though it has become more common particularly during the recession, it still carries a certain amount of social stigma and does invariably affect your credit rating for years afterwards. An IVA helps you avoid this unenviable situation and prevent it from becoming a millstone around your neck for years. Talk to an impartial debt advisor if you think an IVA may help you control your debts.

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The top five reasons people seek debt help

Wednesday, November 18th, 2009

People seek debt help for reasons as varied as the people themselves. Whether it’s an unexpected turn of events or a gradual build up of problems, facing debt problems is always a worrying time, but thankfully there are a number of debt counselling services available. The top five causes of debt range from the unexpected to a ‘dripping tap’ effect.

Credit card debt

One of the primary causes of the economic recession was the ease with which ordinary people could run up thousands of pounds of debt on ‘easy credit’. Total credit card debt in July 2009 was £53.9bn, and with the interest charges on credit cards being higher than the base rate by a considerable amount, credit card debt is a growing problem. Many people solve runaway credit card debt by looking for debt consolidation help.

Unemployment

One in 33 people in the UK is facing unemployment in 2009. The financial buffer of a regular income can be ripped away very quickly and because savings are at an all-time low in the UK, very few people have the money put by to cover themselves in case of unemployment. Losing your job can mean rapidly mounting debt in a very short space of time. If you lose your job and can’t make your payments you need to act quickly; start with government debt advice – they can recommend an appropriate debt management solution.

Illness and divorce

Illness can put you out of work for the long term, and even if you keep your job you will only be eligible for statutory sick pay – a far lower amount than your usual income. Divorce and separation can also be a financially trying time leading to debt, as people have to reassess their lifestyle and their outgoings. A good debt management service will understand the implications that personal problems can have on debt.

Poor financial management

The ‘dripping tap’ effect, poor financial management and a temptation to adopt an ‘ostrich’ syndrome to mounting debts won’t make the problem go away. Perhaps one of the easiest areas to tackle, poor financial management can be quickly turned around with the right debt advice and help.

Failure to maintain credit agreements

If you are committed to credit agreements and you fail to maintain your end of the bargain, the interest charges can start to mount up. Creditors will start chasing for payment (and charging you for the privilege), but again, this is an aspect of financial management that can be tackled relatively easily to get you back on track.

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The three most important pieces of debt advice that can help you get out of debt

Thursday, November 12th, 2009

Facing up to debt and getting professional debt advice can be a terrifying prospect. The Citizen’s Advice Bureau deals with over 9,000 enquiries a day concerning personal debt, and with the effects of the recession still being felt, they expect that number to continue rising for the foreseeable future. Other services such as the National Debt Helpline are seeing similar figures. But there is light at the end of the tunnel, and by taking three simple steps, you can start the process of seeking help with debt, reducing your payments and, eventually, becoming debt free.

1. Admit there’s a problem
Ignoring mounting debts and hoping that they’ll either ‘magically’ go away if you don’t admit to them or spending most of your time desperately worried about coping is not the right way to manage a debt problem. To take control, you first need to admit that there is a problem.

2. Get professional debt advice
Trying to solve the problem on your own will be difficult if not almost impossible. If you are in debt, there are things you can do to drastically reduce the problem that a debt counselling expert will be able to tell you about. They spend their entire careers helping people get out of debt every day, and having that expert advice can make all the difference in a financial crisis. So as soon as you realise that there is a problem, get in touch with an impartial debt advice service who will be able to sit down with you and help you plan a strategy to take back control of the situation and get you out of debt.

3. Have a plan
A debt advisor will be able to help you put together a debt management plan that, if you stick to, can mean that you’re debt-free far more quickly. But for that plan to work, you have to stick to it. By informing your creditors of your situation and drawing up voluntary agreements with them to repay the outstanding amount over a longer period of time but with smaller, more manageable payments, for example, you can avoid the bankruptcy route and problems with credit later on.

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Light at the end of the tunnel – why, with the right debt advice, getting out of debt might be easier than you think

Monday, November 2nd, 2009

Whilst that moment when you sit down and finally admit to yourself that you’re in over your head money-wise may be a daunting prospect, rather than sinking into a depression about your finances, use it as a wake up call to get your money matters back on track. Getting out of debt is easier than it may first appear, as long as you approach it in an open and honest manner and seek debt advice from an independent expert. 

If you lie to yourself, you’re storing up trouble for the future. Be honest – sit down and work out exactly how much you owe and to whom. Talk to a debt counselling service and get them to help you do a complete analysis of your outgoings against your income and by doing this you’ll be able to spot areas that could be trimmed back, freeing up some of your money to go towards repaying your debts. 

If you’re really in a pickle, sit down with an impartial debt advisor and discuss strategies that might enable you to write off debt interest payments by putting a debt management strategy in place. These debt help professionals aren’t there to judge you – they’re there to help. It is estimated that the average household debt (including mortgages) is £58,280. So it’s pretty clear that you’re not the only one in financial trouble. Admitting to debt problems is now no longer seen as an admission of failure; there’s no social stigma to being in debt any more. This makes it much easier to tackle the problem head on and to get the debt advice you need. 

Simple things such as changing your utility suppliers, cutting up your store cards or swapping your outstanding credit card bill to a card with a lower interest rate can all mount up quickly, again giving you spare capital with which to pay off your debts. Base interest rates are at an all-time low at the moment, so it might also be the right time to think about switching your mortgage to a better, fixed rate deal. You may even want to arrange an IVA debt solution. There is plenty that you can do yourself to start managing your debts effectively, but the best advice is talk to an expert.

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A cry for debt help – what to do when you realise your debt is out of control

Friday, October 23rd, 2009

Admitting that your debts are out of control can seem like an admission of failure. But in fact, seeking professional debt advice is actually the first step on the road to regaining control and bringing your finances back into line. It’s not going to be an easy journey and everyone’s experience will be different, but there are things you can do to rectify what initially seems like a hopeless situation.

The first thing to do once you’ve admitted that yes, you do need help, is to get that help. Impartial debt advisors are there to work with you to find options, work out financial plans and help you to get your finances back on track. They will talk you through not only what measures you can take to stop the bailiffs knocking at the door (including unsecured debt consolidation and IVA debt advice) but also your rights as a consumer.

By opening the lines of communication with your creditors, you are giving yourself far more options and a lot more ‘wriggle room’ to get things back on an even keel. By contacting your creditors and stating that you intend to work with them to draw up a mutually agreed pay-back arrangement, you are immediately entitled to a 30 day ‘breathing space’ during which your creditors cannot pursue you for repayment. This gives you a chance to consult with a debt counselling service and to draw up a realistic and effective financial plan to start paying back some of the debts.

Tackling out-of-control debt is not something that you can do on your own. Debt advice services have the means, the know-how and the experience to be able to look at your situation and present you with options. With their help, you can regain control of the situation and begin to get your life back in order, keeping you and your creditors happy and avoiding the stigma of bankruptcy.

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