• Debt

    Debt Management Plan

    This is one of the best options for people who have difficulty meeting their financial obligations. However, there are other options available and suitability will depend on your individual circumstances. A Debt Management Plan will work best for people who owe £5000 or more and can afford to pay at least £100 each month to their creditors.

    Your normal household bills will have to be deducted from your monthly income first and the amount that remains is the amount available for your monthly DMP repayments. Normal household bills include, for example, your mortgage, rent, utility bills, council tax, food and groceries, travel expenses and child care. Many of these are classed as priority so they take precedence over payments to creditors.

    Whatever amount is left after all these are paid will serve as the starting point for a DMP. The types of outgoings that can be included in a DMP … Read the rest

  • Debt

    Small Businesses Dealing With Debt

    What You Should Do

    Of course planning is one of the most important things you can do when running a business, but the problem for many self-employed entrepreneurs is that they don’t do it. In the world of finance, it’s very difficult to track what goes in and what goes out. Timing is also important because most businesses will fluctuate in the amount of business they do. This is why you can’t really plan on a month to month basis. You must look at things in three to six month blocks.

    Also don’t forget to set some cash aside for tax and national insurance so that you can pay your taxes on time. This is a common problem for business owners, especially self-employed entrepreneurs. The tax bill is one of the most important bills you have to pay, but you only pay it once a year, so it’s easy to … Read the rest

  • Debt

    Dealing With Gambling Debt

    Seek Help for the Gambling Addiction

    Before you begin dealing with debt, it is imperative you get help for your addiction. It’s been proven in many cases that gambling addicts are less willing to admit their problems than someone with a substance abuse problem. Not only should you get help for yourself, but for the ones who love you; your family and your friends. Take the time to really evaluate your situation, and how it has affected you, your family and the general quality of living surrounding it all.

    Cut Off Funding

    It could be half to all of your paycheque, a credit card, or maybe you’ve been dipping into your savings. In either case, put a complete halt on any money put towards gambling. Cancelling a credit card is never a good idea, as it worsens your credit situation and lowers your credit score. But in the grand scheme … Read the rest

  • Debt

    Personal Debt Management

    For effective debt management, first you need to split your expenses into fixed costs and variable costs because you can only control (decrease/increase/cut off) these. Rents, fees, insurance premiums etc. will have to be paid the same way. After that you should prioritize your expenses. Your variable costs could be including a $4 magazine that you buy daily on your way to work. Do you honestly need to spend $80 on magazines every month when the same material is available on the T.V and the internet? Debt repayment can be a painful process when you have to cut down on expenses like these but it is worth the pain.

    Another method to manage debt is to consolidate your debts. This means combine all debts and have the interest rate revised by your creditor. For example if you are paying 2% on personal loans category A and 6% on personal loans … Read the rest

  • Debt

    Out of Control Debt

    • The first thing to do is forget about feeling embarrassed. When a person becomes self-conscious about debt troubles, they usually procrastinate. Face the problem and deal with it as quickly as possible. Your stress levels, along with your debt load, will be greatly reduced. Once you’ve reduced your debt you’ll be amazed at how relieved you feel, and how much more productive you’ll be. Every client we’ve dealt with has been happy once we’ve helped them resolve their debts. It may be hard to do, but don’t let embarrassment stop you from debt freedom.
    • Get professional advice – it will save you time and money. This sounds easier than it is, for several reasons. We all have friends or family we rely on for advice. Those people always do their best to help, but sometimes they may not have the knowledge base to give you the best advice. Here is
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  • Debt

    Ways to Beat Your Debt

    Review Your Financial Situation

    The first step to beating your debt is to review your current financial situation. You will need to set aside some time where you can review all of your financial ingoings and outgoings along with all the money that you owe to lenders. You can use Internet banking to be able to easily view your statements and get clear picture of your circumstances. You can also review bills and other direct debits which are going out from your account. Always be honest with yourself and write everything down. It is beneficial to create a spreadsheet which contains all of the information on your present financial situation. This step alone will help you to feel clearer on your finances, and you can start to use the information it presents to create a get out of debt plan.

    Cut Down on Your Spending

    This step is essential if … Read the rest

  • Debt

    Debts Affect Retirement

    It is important to clear a big part of your debt before you retire. Retirement usually means that you will not have the same income and financial means as you’ll give up on your daily job.

    When it comes to debt, credit card loans are notorious for their high interest rates. An average American has a credit card debt of about 3,000$ a year only in interest costs. The minimum payment which you’ll have to make every month comes to 250$. If you have a steady job that pays well, these costs can be easily covered. However, on a pension of 1000$ it becomes a serious financial difficulty.

    Many Americans had to take a mortgage loan to afford a house or an apartment. Mortgage loans make a big part of the total debt every household has. Paying your mortgage loan before retirement must be a priority!

    Student loans are taken … Read the rest

  • Debt

    Reasons to Live Debt Free

    Freedom to Choose

    When you are debt free, the money that you make is your own. Okay, so the taxman wants his share, but all things being equal, you can spend your money how you choose.

    What you are not doing is paying interest to corporations which frankly would not notice if you did or not. Don’t get me wrong, businesses need to make money, but I choose to let them use somebody else’s money and hard work, not mine.

    What I choose to do with my money is not to work a nine to five job, spend quality time with my wife and dogs and enjoy a full social life with my friends and neighbours.

    How would your spending change if a large chunk of your income was freed from servicing your debt?

    Would you choose to live any differently if you were debt free?

    Earn Interest Instead of

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  • Debt

    Business Debt

    It is not recommended to handle debt negotiations on your own. Debt is menacing and getting the support of your family and friends helps relieving that stress of debt. In fact, the best way to negotiate debt is to hire consultants who can communicate and manage lenders to arrive at a helpful debt settlement.

    The handling of debt at its initial stage makes it easier to settle. Lenders should not be ignored, as that would worsen the situation. Do not keep postponing to explain your present financial position to creditors.

    Since it is in the interest of all concerned to get a solution, the lenders would do well to cooperate with the businesses to reduce the rates of interest, extend the line of credit and streamline the debt situation. Dealing with a number of creditors drives your focus away from your business. Debt consultants of good reputation are competent to … Read the rest

  • Debt

    Commercial Debt Collection Agencies

    If they ever take any legal action and become successful at it, they will execute judgment without any hesitation and, in a number of cases, they may seize the property of the debtor. Still, there are extreme situations where they may even liquidate the debtor’s assets. Agencies that take care of debts between companies are able to handle all sorts of issues that surface during the process of delivering their services. They offer a wide range of services, such as getting the payment on checks that have insufficient funds, second placements; skip tracing or other issues pertaining to particular individuals and situations.

    A majority of debt collection agencies provide features that cater to specific industries, together with the services they offer. Credit application assistance is on top of the list. This valuable service is offered by most agencies. This program allows agencies to shortlist applicants and to get rid of … Read the rest