Not so long ago debt management companies were the scourge of the UK’s lenders. Now the same lenders are keen to get their clients with repayment problems on to debt management programmes.
Archive for the ‘Debt Management’ Category
Debt management companies find favour with creditors
Monday, October 8th, 2007The Behavioural signs of someone with a debt problem.
Wednesday, October 3rd, 200710 signs of the behaviour of someone who not just has debts, but has the tendencies of a compulsive debtor. People who are unorganized and chaotic in life, often let this spill over into handling of their personal finances. (more…)
Doorstep Lenders Offer Loans at 400% APR.
Friday, September 21st, 2007We speak to people everyday who enter into finance agreements without understanding the level of interest they will be charged.
You may be surprised how many people do not know that APR stands for Annual Percentage Rate, nor are numerate enough to equate the figures to what they are actually being charged. (more…)
What are the danger signs I should look for with debt?
Wednesday, September 12th, 2007There are many reasons why people contact us for help with managing their debt, divorce, loss of job, reduced hours, sickness etc. By far the most common, though, is simply overcommitment, or too much debt for the level of income to sustain comfortably. Unbelievably, many people have no idea how much they owe in total. (more…)
Save £1000s by making a Full and Final Settlement
Monday, September 10th, 2007Offer Full and Final settlement payments if you have lump sum of money. Don’t just use it to pay of some of your debts without negotiating with your creditors first. (more…)
Avoid debts with the bank where your wages are paid.
Friday, September 7th, 2007You should always avoid debts with your bank where you maintain your current account. This is because your bank can help themselves to money owed to them whether you can afford it or not. (more…)
Arrange for you direct debits to get paid just after payday.
Wednesday, August 29th, 2007This way, your essential bills are paid on time and you can budget for the rest of the month.
Not only does with allow your to make payments on time and to avoid late payment charges and bank charges, you could get benefit from defering payments until your next months wages without any cost to yourself.
If payday lands before the end of the month, and your direct debits etc are paid throughout the month, simply call each company and ask to shift them to the day after you get paid.
Almost all companies work from 1st of the month, and they are still being paid in that month but you are saving a whole months outgoings and you are paying them from your next wage.
Use internet banking to check your statement everyday.
Friday, August 24th, 2007Know for sure how much is in your bank account at any given time.
Get into the habit of knowing exactly how much you have in your account and when direct debits and other standing orders are due to be made. This is easy to do by online internet banking.
Not only will this reduce costs to you in less charges from your bank and creditors for missed payments, you will be more focused on how much you are spending and how much you need to keep in your account to budget for essential bills.
Be cautious with home equity loans to consolidate debt.
Thursday, August 16th, 2007If you fail to maintain payment you can’t use a debt management company to help you out.
Remember that a secured loan is secured from the lenders point of view, not yours. They have the security of knowing they can force the sale of your home should you fail to maintain payments.
Turning unsecured dent in secured debt, so to can spread the payment over a longer period may seem to be a solution to unaffordable credit repayments, but the consequences of not being able to maintain payments are worse. A least with unaffordable unsecured debt, you can use the services of an debt management company to get payments reduced, but they can’t help with secured borrowing.
Speak to you priority creditors about your debt problems.
Friday, August 10th, 2007Get in touch with your most important creditors and try and re-negotiate your monthly repayments
By most important we mean those to whom non-payment is most serious, eg your mortgage or those charging you most interest.
The sooner you ask for help once you find you are having difficulties, the better for you.
A common problem we find is that creditors are only aware of a problem once accounts are in arrears. If you know you are not going to miss payments, or are not going to be able to catch up with arrears any time sooner, speak up.
