Factsabout

“So you have large debts with various creditors which are causing you a lot of stress and aggravation. You are worried about losing your house or your TV being taken away. What are your debt management options?”… 

“Many people are worried about how the credit crunch will impact on them and one their debt management strategy. News of falling house prices, increase in the cost of fuel, a lack of availability of cheap credit and bankruptcies soaring mean that everybody is worried about their debts and debt problems and how they are going top survive this credit crunch.”

“Far too many people start to really worry about their debts problems when they realise that they are in too deep and then it is too late. Recent figures back this up with the projected number of insolvencies for 2008 being increased from 110,000 to 135,000 . So how do avoid being part of these statistics? Answer – sensible debt management.”

“British consumer spending using credit cards is out of control. In the last three months of 2007 a record sum was spent using plastic to pay for household expenses. Not only is this poor debt management but it stores up trouble for the future.”

“When we take out a loan, either unsecured or secured do we consider what happens should we start getting into financial trouble? Typically loans are either taken out for debt consolidation purposes or for a holiday, house extension etc. However, we need to know what the risks are when taking out such loans.”

“The credit crunch is biting its way into our daily lives more than we think, Northern Rock and Bear Sterns are perhaps the most noticeable causalities but are there any more?”

“These arrears are classed as priority debts due to the fact that you can be disconnected for non-payment. Although being disconnected is measure of last resort it still may happen if you ignore your responsibilities. So if you are having difficulties making payments your first port call should be to contact your energy provider and explain your situation.”

“With the impact of the credit crunch taking a bigger bite out of all our pockets, I thought I would take a look at what we should do if you were struggling to make payments on your home or you have mortgage arrears.”

“Many years ago cowboys could be easily identified by their Stetsons, guns and horses. However, these days it’s not quite so easy. We have all watched programmes about cowboy builders and plumbers charging a fortune for doing next to no work or for poor workmanship. Well, it appears that these cowboys have saddled up and move on to pastures new – debt advice.”

“Unfortunately there is no golden bullet which will obliterate your debt. Debt consolidation, for many, is something which has built up over a period of time and so it will take at least the same period of time to get rid of it. There are many reasons for debt but few answers to the problems. Debt consolidation, debt management or insolvency is really the only solutions available today. However, no matter what the solutions are they can only be effective, only if there is control over the finances.”

“With the news last week that the 3 main mortgage providers have pulled the plug on their 100% mortgage products should we be worried about the implications of this on first time buyers?”

 “Debt consolidation is used by those who want to reduce monthly repayments on their debts or transfer their debt to a cheaper deal. However, this will create a false sense of control over finances which makes people think that their debts are under control and that they can carry on with their spending and increasing their debt. This is what experts caution against when considering a debt consolidation loan.”

“Are your debts mounting up, are you in a debt management plan, considering debt consolidation or do you just want to save up for that special something? Well here are Debtwatchdog’s top tips on how to increase your household income.”

 “Talking to your child about money and your debt is a good thing, although many feel like they are corrupting their children by doing so. This short guide will give you a few ideas on how you can break the family debt spiral and stop your children repeating your financial sins.”

“The Department of Trade and Industry is compelling credit card companies to draw attention to the order of payments on your debts. Don’t worry if you haven’t heard about “order of payments” before since two thirds of us haven’t heard of it either.”

“With the credit crunch tightening its grip on the financial sector, borrowing at an all time high and house repossessions breaking new records Brits have to ask themselves the question how much debt is too much?”

“Debt levels are at an all time high and yet it is claimed we are the wealthiest we have ever been. So why do so many of us rely on debt consolidation as a debt management strategy and what fuels our addiction to debt . This article examines the drivers behind Bankrupt Britain.”

“Many high street lenders are pushing debt ridden families into bankruptcy. Failure on the part of lenders to agree to the “lighter” form of bankruptcy, an Individual Voluntary Agreement (IVA) has forced many into financial breakdown.”

“Debt consolidation can be an effective way to address your debt problems. Combining all your debts into one new loan can be an effective way of managing multiple debt problems. There are various ways in which your debt can be consolidated; through a re-mortgage, an unsecured loan or a secured loan. However, the pros and cons of each option should be carefully considered.”

“If you have over extended yourself financially, either through an ill considered debt consolidation loan, through poor debt management or you’re a victim of aggressive marketing you’ll find yourself becoming very popular should you have difficulty making the repayments. Your creditors will start calling you to get their money back. “

“There are many misconceptions about what happens when you become bankrupt. These misconceptions can lead to unnecessary stress and worry about what happens in a bankruptcy. If you prepare yourself with the facts about what is involved in bankruptcy then when it happens your can cope with it. Here I’ll try and dispel the myths surrounding bankruptcy.”

“We all have taken out debt consolidation loans or increased our debt levels without considering the consequences of what should happen if I fail to make the repayments. Poor debt management will mean that your creditors will take more of an interest in you when you start having problems. So what can creditors do to recover their money?”

 “You’re in the shop to buy some batteries and a kettle and decide to take a look around. A surround sound cinema system with plasma television catches your eye. Caught in its tractor beam of sleek lines, superb sound and crystal clear picture, you stand there with your mouth open like a kiddie in a sweet shop. Time stands still, you’re watching some bloke skiing down a mountain-side, and you think, “It’s like I’m almost there.” And you think, “I want one of these.”"

“The key to an effective debt management strategy is work out exactly how much you owe and create a plan to clear that debt. Simple. Well sort of. Getting into debt is simple – e.g. by spending slightly more than you earn each month. So the obvious solution to your debt mountain would be to spend slightly less than you earn each month.”

“There is some confusion as to what is the best solution to help people with an unmanageable debt problem. Many financial institutions, banks and credit card companies have been trying to dissuade people from entering into either an IVA (Individual Voluntary Arrangement) in England and Wales or a PTD (Protected Trust Deed) in Scotland. In doing so, they are trying to reinvent the stigma which was traditionally attached to insolvency in the past.”

“It appears that reclaiming bank charges is the flavour of the month. Bank charges are a great way for the banks and credit card companies to add to their massive profits. The size of the problem is huge, it has been estimated that the financial institutions generate £4.5 billion a year from illegally applying bank charge penalties. Nice!”

“Debt just seems to creep up on us. Nobody sets out with the intention of running up vast amounts of debt – that would be insane (or criminal)! But nearly all of us have some debt. According to recent figures issued by Credit Action, the total amount of unsecured debt in the UK is £213 billion. When you factor in what we owe on our houses, it brings the total up to a whopping £1.3 trillion of personal debt in the UK. So what impact does this debt have on us?”

“No-one has the right to credit, but what do you do if you have been refused credit or you just want to know what’s on your credit file?”