People do say, in many walks of life, that your first step to realising you have a problem is admitting that you have the problem. Easy to say and it makes a lot of sense – but a lot of people in society do use forms of denial as a way of avoidance on many subjects.
Debt is no different. It is so easy to assume all is well and that you don't need debt management. Avoidance of the requirement of debt consolidation often falls into 2 categories:
1. Cut spending but cannot make significant inroads into clearing the debt.
2. Completely ignore the debt and continue borrowing on new or existing credit limits.
Both are a clear sign you need help with debt consolidation – however it is clear to see that point number 2 is the worst situation to be in.
Write down what you owe and to whom. Then write down how much you pay on the debts per month. If you think that you're paying too much on unsecured debt then you need to get debt management.
Another step that you should take is to stop borrowing. If you have more credit available on your credit cards – don't spend it – if you do you are spiralling towards more debt and higher monthly payments on this debt.
In times of low interest rates on savings you will save money also if you move any savings that you do have to clear existing debt – chances are you're earning none or very little interest on your current savings.
Friday 30 October 2009
Thursday 22 October 2009
Understanding Debt And Debt Consolidation
Maybe there is an element of fear when it comes to debt and debt consolidation and if you "brush it under the carpet" and erase it from your mind it will go away. Unfortunately this won't happen and if anything this approach to dealing with your finances can only make things worse.
When talking about debt and debt management, and the help and advice you can get to deal with it, it is clear that many people simply don't understand or don't WANT to understand what situation they are currently in.
The best way to approach dealing with debt is to write everything down. Instant reactions to this are, "but I know what I owe." You may think you know but you probably don't know everything and the final figure will probably scare you. But... the aim here is to face up to the problems and then they can be dealt with sooner rather than later.
Then you need to calculate all of your outgoings (including your debt, rent/mortgage, food etc) and your incomings so you can determine whether you need debt management help or not. Not everyone does - some people just need to be patient and pay debt off over time.
There are many companies, Debt Help Quick being one of them, who can put you in touch with people that can help sort out your debt - if that's what you need. If you're not sure then make a quick application and we can find someone to tell you the route that you should possibly take regarding debt help.
When talking about debt and debt management, and the help and advice you can get to deal with it, it is clear that many people simply don't understand or don't WANT to understand what situation they are currently in.
The best way to approach dealing with debt is to write everything down. Instant reactions to this are, "but I know what I owe." You may think you know but you probably don't know everything and the final figure will probably scare you. But... the aim here is to face up to the problems and then they can be dealt with sooner rather than later.
Then you need to calculate all of your outgoings (including your debt, rent/mortgage, food etc) and your incomings so you can determine whether you need debt management help or not. Not everyone does - some people just need to be patient and pay debt off over time.
There are many companies, Debt Help Quick being one of them, who can put you in touch with people that can help sort out your debt - if that's what you need. If you're not sure then make a quick application and we can find someone to tell you the route that you should possibly take regarding debt help.
Monday 19 October 2009
Uks Unsustainable Debt Problem And The Growing Need For Debt Consolidation
A report by the European Commission on the long-term prospects for Britain's public finances warns that unsustainable debts are a real risk to Britain. This implies that the nation will be unable to manage its debts and that only default or high inflation can relieve the burden.
The Commission's 2009 Sustainability Report says that Britain will suffer a "sustainability gap" of 12.4 per cent of GDP – meaning tax rises or spending cuts amounting to close to £200bn a year.
The Commission says the black hole in the British public finances is far higher than the EU average of 6.5 per cent. It implies that, as Britain's population ages and makes increasing demands on the NHS and state pensions, governments will have to make even more painful decisions on public services and taxation in the decades ahead than so far envisaged. The Chancellor, Alistair Darling, currently plans a tightening of 6.4 per cent of GDP by 2017. The Commission's time horizon stretches to the middle of the century.
The existing crisis in Britain's public finances will be exacerbated by long-term population and social trends such as a pattern of high borrowing followed by debt advice, says the Commission: "To put public finances on a sustainable path, the United Kingdom should improve its structural primary balance in a durable manner by 12.4 per cent of GDP. In principle, this adjustment could take place via both an increase in revenues and cuts in expenditure. Alternatively, the social protection system would have to be reformed to decelerate the projected increase in age-related expenditure."
Ignominiously for ministers, Britain is placed in the same sin bin of fiscal profligacy as the Czech Republic, Cyprus, Ireland, Greece, Latvia, Lithuania and Romania. The Commission says that by next year four EU members – France, Hungary, Portugal and Britain – will have debts between 80 per cent and 100 per cent of GDP.
Since it is continuingly difficult for the public to get consolidation loans the only viable option for many is to seek debt help.
The Commission's 2009 Sustainability Report says that Britain will suffer a "sustainability gap" of 12.4 per cent of GDP – meaning tax rises or spending cuts amounting to close to £200bn a year.
The Commission says the black hole in the British public finances is far higher than the EU average of 6.5 per cent. It implies that, as Britain's population ages and makes increasing demands on the NHS and state pensions, governments will have to make even more painful decisions on public services and taxation in the decades ahead than so far envisaged. The Chancellor, Alistair Darling, currently plans a tightening of 6.4 per cent of GDP by 2017. The Commission's time horizon stretches to the middle of the century.
The existing crisis in Britain's public finances will be exacerbated by long-term population and social trends such as a pattern of high borrowing followed by debt advice, says the Commission: "To put public finances on a sustainable path, the United Kingdom should improve its structural primary balance in a durable manner by 12.4 per cent of GDP. In principle, this adjustment could take place via both an increase in revenues and cuts in expenditure. Alternatively, the social protection system would have to be reformed to decelerate the projected increase in age-related expenditure."
Ignominiously for ministers, Britain is placed in the same sin bin of fiscal profligacy as the Czech Republic, Cyprus, Ireland, Greece, Latvia, Lithuania and Romania. The Commission says that by next year four EU members – France, Hungary, Portugal and Britain – will have debts between 80 per cent and 100 per cent of GDP.
Since it is continuingly difficult for the public to get consolidation loans the only viable option for many is to seek debt help.
Thursday 15 October 2009
Personal Debt Crisis Escalates. Debt Consolidation Companies Thrive
Approximately 70,000 people are desperately seeking help each month as they struggle to cope with debts of almost £1 million between them. New figures revealed illustrate an escalating personal debt crisis as the recession tightens its grip on struggling families throughout the region. The Citizens Advice Bureau said the number of people facing money problems has spiralled. A money advice specialist told the Standard: "We are dealing with an extremely high number of people in thousands of pounds worth of personal debt each month. Christine, who has worked at CAB for four years, says the majority of new clients are homeowners struggling to pay their mortgage. "The number of clients who are homeowners and seeking advice regarding debt problems is continuing to increase," Ms Sinclair said. "Many of them are struggling to pay their mortgage which could be the result of a job loss or perhaps a person can no longer get overtime at their work. debt help companies are one option they should consider." She said: "We anticipate that this situation will continue as the impact of the credit crunch takes effect and it could take several years for families to get back on track financially. "I would urge families to contact us early on with any financial problems they may have. We have an excellent team at hand to help people." CAB are currently helping 1,293 people locally overcome debts mounting to an incredible £17.7million. debt consolidation companies are noticing a boom in people seeking their help and a total of £1.7 million-worth of debt has been written off between April and September as dozens of people are forced to claim bankruptcy. Worrying Stuff.
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