According to current statistics, there are over 2 million UK residents who seek help for their debt problems. Most of them are overwhelmed by their debts and are usually torn between making their debt repayments and meeting their daily needs. This is because of recent tough economic times that have affected the UK economy. With reduced incomes, loss of jobs and family homes, many people are struggling with their debt repayments.
There are however, a couple of solutions available to people seeking suitable solutions for their debt problems. One of the most important of these is taking out a debt consolidation loan. In order for an individual debtor to take out a debt consolidation loan, they will first need to seek the services and assistance of a suitable debt management firm or financial services professional. After an assessment of their personal circumstances, the finance experts will determine that the debt consolidation management program is most suitable for them. After this has been demonstrated, a debt management plan is initiated. This entails the consolidation of all debts owed by an individual into one debt that is managed by the firm. After this has been done, the debt management firm will contact the relevant credit firms seeking to repay the debt under re-negotiated terms.
After all the above has been sorted out, the consumer is then free to take a debt consolidation loan. The debt consolidation loan may be either secured or unsecured. An unsecured debt consolidation loan is usually issued if the amount owed is relatively small, usually less than 10000 pounds. The borrower will also be required to be of good credit standing. The advantage of this debt consolidation loan is that it has very low monthly repayment amounts as well as low interest rates. The secured debt consolidation loan is usually issued to borrowers who hold equity, such as home equity. They homeowner will need to own at least 25 per cent equity on their home.
The benefit of taking out debts consolidation loan is that it eliminates all the current debts and the high interest rates and penalty fees usually imposed on them. It will leave the consumer with a soft, easy to pay loan that charges low interest and is spread out over a reasonable period of time.
There are many debt solutions in the world today. Among these solutions three stand out above the rest. These three debt solutions are self-assessment, negotiation, and consolidation. If these three debt solutions are combined into one tactic the end result is a much lower debt and frustration.
Among these three solutions the easiest to undertake is self-assessment due to the simplicity of the concept. Self-assessments are debt solutions that allow an individual to free up their income in a way that helps pay their living expenses and debts. This solution to a financial issue includes assessing the income and expenses for the household. When the expenses include non-essential items these items can be removed from the equation thus freeing up monetary resources to pay debts. If there are no non-essential expenses in the budget it may be time to consider selling off personal possessions or even moving to a home that costs less to maintain. Once the debts are paid off they can spend money on extraneous items again.
Negotiation is one of the best debt solutions available. This type of solution allows an individual to directly communicate with a creditor in order to persuade them to lower the amount of money that is owed to them. This tactic is more likely to succeed if a professional debt negotiation specialist is contacted to perform these actions on behalf of the indebted individual. A specialist will be able to cite local and national laws that can be used to force a settlement. They are also versed in the tactics that a debt collector might use. The success rate of negotiations and settlements are much higher with the help of a specialist.
Debt consolidation is considered to be among the simplest and most effective debt solutions currently. This solution requires the individual to take out a personal loan in order to pay off old debts. Once this action has been performed the old dates will be paid off in full and consolidated into one lump sum. The monthly payments for this new debt will typically be smaller than the combined total of the original debts.
Debt collection is the process by which creditors collect on the debt that is owed to them. Due to the fact that it is sometimes very difficult for creditors to accomplish this on their own, they often use professional debt collection agencies in order to more effectively carry out their duties. In essence, debt collection involves the active pursuit of payment by debtors for the debt that is owed to creditors. The collections process varies from state to state and country to country, but there are common principles involved in the methodology used by any collections organization.
To be effective in the art and science of debt collection, an individual or agency must have a thorough knowledge of the legal ramifications involved with this process. It is important to effectively collect the debt that is owed to creditors in a manner that is consistent with the laws governing these processes.
Effective debt collection requires superb analytical and negotiations skills. An individual or organization has the greatest chance of collecting on a debt if they are respectful of the circumstances of the debtor. It is imperative that the debt collector seeks to find common ground with the debtor, and to negotiate payment terms that will be amicable to both the debtor and creditor alike. A thorough knowledge of human psychology is very helpful in the debt collections process, and will play a large role in determining the success or failure rates of the collections organization.
Debt collections requires a high level of investigative skills, due to the fact that information about the debtor will help the collector to develop a more effective collections plan. Information about the debtor’s income, assets, and lifestyle, are all very important in helping at collector to develop profile of the debtor and their situation. Once all of the pertinent information is analyzed, the debt collection can be carried out in a more systematic and efficient manner.
There are a number of agencies that offer help with debt. It is up to the individual to find the right people or the right agency to help with their debt. Debt help can be as simple as calling your creditors to ask for lower rates, or can involve going to a bank or credit union to get a debt management plan to help you deal with the debt. One can find any number of ways to get debt help in the UK.
Debt help is available online from Debt Resolve UK which s an agency specifically to help individuals deal with burdensome debt. They can find debt help by googling the term, or looking in the yellow pages, or a business directory for an agency that helps consumers manage their debt. A debt management plan may consist of a managed plan to help you pay down your debt. It could also be a debt consolidation loan whereby the individual makes one payment per month as opposed to several smaller payments to pay their creditors. It is really up to the individual to weigh their options and select the plan that will best benefit them in the long run.
Whichever option one selects for debt help it is important to deal with a reputable agency. There is a debt forum that most reputable agencies belong to. One could check to see if the agency they have picked to help with their debt are part of this forum. There are many options to choose from when going with a debt agency. One of these options is a unsecured loan which is a loan that allows you to pay your debt without being attached to anything, a secured loan is typically guaranteed by something such as your home, an IVA or involuntary arrangement is another option that can help you deal with your debt. A debt consolidation loan is also an option.
A debt agency can offer you debt help also to help you negotiate with your creditors. Debt help can help you avoid bankruptcy. Many people will use debt help to help them find the proper debt solution for them. Remember while carrying too much debt can be a hassle, it does not have to be a disaster, and and the proper agency can help you negotiate your debt.
Debt consumes the life of many people. In a lot of situations, it begins small with a few expenses on one or two credit cards. But after months of growing interest and further expenses here and there, debt is built into a large burden. As most people know, it is easier to get into debt than it is to get out. In the majority of situations, people fear they will never be able to their debt off.
When Debt Controls you
Debt is a burden, and if you allow it, it will control your life. Debt will eventually impede on your ability to buy the things you need when you need them. It will affect your financial status for the worst. This stress will eventually negatively affect your relationships, your performance at work, and all the other areas in your life, until it controls every aspect of it. You will feel as if you can no longer control it, and then you will feel as if it is controlling you. If you find that you have built a huge amount of debt and it’s consuming your life, then you need a debt management plan.
Take control of your debt with a debt management plan
Debt builds quickly, but it takes years to pay off. However, debt doesn’t have to cause stress or control your life. If you create a plan to manage your debt, you can finally take control of it. A debt management plan is a controlled method of paying off your debt.
A debt management plan is a subjective strategy that you can implement to pay off your debt. It allows you to manage your debt in a smart way and at your own convenience. The type of debt management plan that you choose will undoubtedly be different from someone else’s because everyone has a different debt situation. When putting together your plan of action, you will have to analyse your complete financial situation and determine the best way to manage your debt. Understand also that a debt management plan will not solve your financial problems overnight. It will take time and patience, but if it’s realistic, your debt management plan will eventually eliminate your debt and free you from the stress that constricted your life for so long.
Where to find debt help? With the recent economy, quite a number of people have found themselves without jobs and no money to pay for bills. As a result they have increased the amount of debt they have until the amount has become staggering. Instead of accumulating more debt, what someone might need in this situation is debt help. This is a method in which someone who has accumulated debt contacts a legitimate debt advisor to help the reduce the amount of debt.
One way to get help for your debt is making an appointment to see a debt advisor. Someone who is skilled in debt management will be able to help you deal with the mounting debt you have. Debt help from a debt advisor can simply mean discovering how much you owe in debt and then calculating how much you can afford towards this debt. Depending on the state that you live, this form of debt help can be available for free or at a cost through a private debt management service.
A second way to get debt help is through a bankruptcy adviser. This type of help is available for anyone who is thinking that bankruptcy might be the answer for them. However, many people should not take bankruptcy lightly, as it can have serious effects on someone’s credit rating. If bankruptcy is an option for you, then the advisor will be able to suggest this to you.
There are a few non profit agencies and charities that provide debt help. These organizations may or may not receive a commission from the non profit agency when a new customer signs up with them to receive debt advice. Therefore, this is a valuable tool for anyone to obtain more advice on the ways they can get debt help and regain control over their finances again.
When considering filing for bankruptcy, consumers have many bankruptcy questions, and wonder if it’s the right choice for them. The major bankruptcy questions are: what is it? will it affect my credit? how long does the process take? And many other topics which consumers are not aware of. The main thing when bankruptcy questions arise for consumers, is that there really is no right or wrong, yes or no answer to those bankruptcy questions. Each consumer needs to review the facts and decide whether it is the right option for them.
The first of the bankruptcy questions is which form should I file. There are two forms of bankruptcy, Ch 7 and Ch 13 bankruptcy. The next of the bankruptcy questions to answer is, what is the difference?
Ch 7 bankruptcy (straight bankruptcy) is a liquidation process. Debtor’s turn over all non-exempt property to the trustee, who in turn converts it to cash to distribute to creditors. The debtor will be discharged of all dischargeable debts (usually within 4 months). This form of bankruptcy basically gives people “a fresh start.”
Ch 13 (reorganisation bankruptcy) is filed by people who wish to pay off their debts over 3 to 5 years period. This is more for individuals who have non-exempt property they wish to keep. It is also for individuals with a set (predictable) income, which is enough to pay reasonable expenses with some funds left over to pay their debts.
One of the next bankruptcy questions asked is who is affected by my filing? - If you file for bankruptcy, your crediotrs will stop calling and harassing you. The law requires creditors to cease contacting debtors oncec they file for bankruptcy. As far as family, your spouse will not be affected if you file for bankruptcy (if they aren’t responsible for any of your debts). There are some exceptions in real estate transactions requiring both spouse’s names on the contract. But normal debts (like credit cards) don’t require both parties.
There are many additional questions about bankruptcy depending on each individual consumer. Which form to file depends on your debt to income ratio, and whether you can make payments. Deciding on filing for bankruptcy is a personal option which no one, except for you the debtor, can really answer.
Getting debt help is not an easy thing to accomplish alone. The United Kingdom is filled with individuals that are looking for ways to eliminate their debt so that they can live a brighter and more fulfilling life.
It takes time to find someone that can help you out of your current situation. Sometimes this involves find the right company to help you take care of your debt. Going with a company may reduce or eliminate your debt but it was also hamper your credit score and any credit reports for a little bit of time. If you need debt help though a large company may be able to assist you. Get all of your financial information together and contact a reputable company that has a history of helping its clients to succeed.
If you want debt help you can also look into contacting the agencies that you have used to get into debt. The credit card companies, banks, and most loan offices will try to oblige with your terms and help you out of your current situation. You may be able to lower your interest rates which will allow you to pay your debt off faster or at least not have to pay as much money each month.
Another option for debt help is to refinance your home or other secured loans for better rates. If you can save even 1 percent on your mortgage’s interest rate, you could save a substantial amount of money each month. Look to the lien holder on your vehicle and see if they can give you a better rate. You can also look into a home equity loan that could give you the money you need right now to pay off your smaller debts. Debt help is available but you need to know how to find it.
Debt help is almost a requirement in these current economic times. It is hard to find anyone that does not have some sort of debt so choose one of these methods to get out of the hole and stand again on your own two feet.
Getting too deep in debt before you are even out of your twenties is a very bad thing and in this article I am going to discuss with you some very serious matters regarding the ways that debt can absolutely ruin your life and damage your chance of ever having a comfortable future financially. Learning how to plan for your future right now by understanding how not to get too deeply in debt is your key to a much more successful financial future.
Understanding how severely debt can damage your adult life is very important because it is real, it is something that can happen when you least expect it, there is no doubt about that people. Those credit card payments that are draining you each and every month are going to be the death of you. Not literally but financially, it is not looking like a very bright or frugal future at all. Credit card debt can destroy your chances of ever having a good credit rating later on in your life.
Staying away from credit cards, or actually, staying away from TOO many credit cards, is and will be your wisest decision that you have ever made because your financial future will be much brighter because of it and who knows, you might even be able to save yourself some money each month because of not having an overabundance of credit card payments being mailed out each and every month, which would be absolutely wonderful!
Debt from credit cards, mortgages, medical bills and many other things, is all of the reasons why too many people are unable to go one single day without being stressed out about their finances. Debt relief from paying off all of those bills, or atleast some of them, will provide you with a much more comfortable feeling each and everyday, because of not having to worry about whether or not you are going to be able to pay your monthly bills.
Finding help on the internet is another good source of getting the financial advice and information regarding all sorts of debt and why it is so very important to not let your debt ratio get completely out of hand. Letting your monthly payments get out of control is a very bad mistake that far too many people make and if you can learn how not to get in too much debt now, it will definitely help you have a happier financial future.
Learning, no matter how it is you are doing so, is the best way to retain the type of financial knowledge that is needed to guide you in the appropriate path, so that you do not end up in debt trouble. There are plenty of financial and debt advisors out there that can provide you with the appropriate information, hopefully preventing debt crisis from occurring with you.
Do not let debt control you, you learn how to control how much debt you allow yourself to have.
The UK in recent years has seen a massive growth in the levels of personal debt and thanks to increases in secured loans corresponding to a strengthening of the housing market; it does not appear to be slowing down. Recent figures from Creditaction show that since the end of 1993, when debt levels were around the £400bn level, they have now risen to an astounding £1148bn, and it is growing at a rate of 10.2% per annum, or £100bn over the last year alone.
Mortgage loans currently make up about 83% of the total personal debt level following a 10.3% (£956.3bn) increase over the past year. Both the Bank of England and the Royal Institution of Chartered Surveyors (RICS) have reported a pick up in the property market compared with the previous 12 months. The RICS have seen increases in mortgage approval figures, as well as the number of prospective buyers making enquiries. A spokesman for RICS, commenting on the housing market, stated they believed, “2006 will see the first annual rise in activity since 2002, after three consecutive years of decline”. International property consultant, KingSturge (http:www.kingsturge.co.uk) is more cautious however, predicting a modest 3% UK residential growth in 2006, while chief economist for the Halifax, Martin Ellis, stated, “Another year of below trend economic growth and the continuing high level of house prices in relation to earnings… should curb housing demand and prevent a renewed bout of high house price increases in 2006″. This will come as good news for the many first time buyers who are struggling to get onto the first rung of the property ladder.
Consumer unsecured lending over the past 12 months has risen by 9.8%, which is less than the rate of secured loans. According to Bank of England figures, this represents a slight drop in monthly credit card spending levels from October to November. Growing fears about abilities to repay the debts are seen to have been a major contributing factor in the slowdown. According to Experian three in four Britons worry about financial pressures during the festive season with 20% still paying off the debts accrued over Christmas six months later.
The Creditaction report has however indicated that overall average consumer borrowing through credit cards, motor and retail finance deals, overdrafts and unsecured personal loans, rose to £4,121 per UK adult by the end of November 2005. The average UK household debt was approximately £7,776 (excluding mortgages) and £46,491 including mortgages, with the average sum owed by each UK adult at approximately £24,636 each (including secured loans).
The means of making payments in shops has also seen changes, with debit cards now overtaking credit cards as the most favored card method to account for two thirds of all plastic payments. The switch to debit cards means that shoppers gain tighter control of their spending without wracking up greater debts. There is still more that can be done to reduce unnecessary expenses however, with the average credit card APR at 15.75%. This is about 11% higher than the base rate, and much higher than many widely available cards as shown on the financial comparison site Moneynet (http:www.moneynet.co.ukcredit-cardindex.shtml ).
Following on from a history of increasing personal insolvency rates in the UK, with the period from July to September being the worst on record, the recent figures make for welcome reading. However whilst the current trend seems to be progressing towards a more responsible attitude to personal debt from both lenders and borrowers, there is still much work and education that needs to be done.
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.
You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.