Beat Debt Guide
Don't Delay, Start Today
‘Extreme Debt’ Levels Get Worse
‘Levels of ‘extreme debt’ in the UK (BBC News website) are worsening, says a charity which has seen the number of its clients owing more than £100,000 nearly double.
The Consumer Credit Counselling Service saw the number of clients in extreme debt rise from 1.4% to 2.7% in a year. Statistics for its 280,000 customers for 2005 showed people aged between 40 and 59 had the highest level of debt – owing an average of £34,456.
But increases in the amount of money owed were greatest among the over-60s. The CCCS said the amount of money owed by people over 60 who contacted the group had soared by 25% to an average of £33,658.
The Foundation for Credit Counselling, which is responsible for the CCCS, said it hoped to use the statistics to help people in debt.
The CCCS also saw the number of young people struggling with debt increase. It was contacted by more 18 to 24-year-olds and found they owed an average of £15,079 in 2005, compared with £11,935 two years earlier.
If you are in debt – whatever age you are, you need to take action and stop yourself getting into more and more debt. If reducing your debt problems are a priority in your life – take action and make the necessary steps to START BEATING DEBT TODAY!
Multiple Credit Cards and in Debt
We all know people who have lots of cardit/store cards. There are some people who will pay off there bills every month and there are those that don’t.
If you are one of those people who are struggling to pay them off and only pay the minimum every month then at least try and make sure you aim to pay off the one with the highest interest payments first.
Also, see if you can switch your balance to a credit card which charges a lower rate of interest – there are many providers of these special “balance transfer” deals.
There are some good deals to be had and a good place to start to find one would be www.uswitch.com because they look at:-
- The size of your balance transfer
- The length of the interest-free period on your balance transfer
- Your existing credit card’s interest rate
- The amount of money you want to spend on your card each month
- The amount you are likely to pay each month
So go on – stop reading and take ACTION!
Debt Costs – Debt Consolidation
Found this good Fool.co.uk article and thought it was worth highlighting here…..
“How Much is Your Debt Costing You?”
You may owe vast amounts of money to various people, or perhaps just a teeny weeny bit, but, whatever the size, you are bound to be paying interest on it. Just about everyone charges interest on what they lend you and, occasionally, we need reminding about what ‘interest’ actually is.
I dare you to take a tenner out of your pocket and set fire to it!
Go on! Watch it burn.
And then do it to another tenner.
You didn’t do it, did you?
I’m not surprised. The idea of watching ‘real’ money disappear, never to be seen again, is a tad disturbing. But it’s what you’re doing every time you only pay off the minimum on your credit or store card or whenever you make that monthly payment on your car loan. Part of your payment consists of the ashes of that tenner!
Are we beginning to get the point across?
There’s no difference between burning a tenner and not seeking out the best price. Well, there is — one requires direct action, the other only requires you to sit on your backside. And, if you do the latter, you’ll just be burning up all those tenners and will get a reputation for being one of the best customers of all those financial institutions out there! In other words, a sucker!
If you look after the pennies, the pounds will look after themselves, and it’s time to finally take that old proverb on board even if your mother has been spouting it at you ever since you were primary school!
While you almost certainly know what the interest rate is and while you know how much your repayments are each month do you really know how much you will be paying overall? A £10,000 car loan at a very reasonable 15% from a High Street bank over four years will cost an extra £3,360 in interest payments.”
How long does it take you to earn £3,360? And what else could you do with that £3,360 in 4 years?
Just like in George Orwell’s 1984, the Wise money-men confuse us with doublespeak. Credit is simply another word for debt.
But “credit” has good connotations: think of phrases like “to his/her credit…”, or “creditable”. It sounds like a good and reliable thing — almost the complete opposite of “debt”. As a thought-experiment, try substituting “debt” for “credit” wherever you see it today: “Debt card”, “easy debt terms”, “low-interest debt”, “interest-free debt for 6 months” “Poor debt rating? Don’t worry — we can offer you debt today!”
Do they still sound like attractive offers? Does “good credit rating” really mean very much more than “you are considered to be a reliable payer of interest”?
If you’re in debt you know it’s far too easy to borrow but remember the above and you will be on your way to turning your finances around. Use all the spare money you have to reduce your debts.
As stated previously – take action, the sooner you start the sooner you will be a happier person.
Ask for HELP if in Debt
It seems to me that there are almost daily stories about people in debt. Often the person concerned state that they didn’t know who to turn to. There is plenty of help available if you’re in debt – you just have to go and ask.
- Consumer Credit Counselling Service - purpose is to assist people who are in financial difficulty by providing free, independent, impartial and realistic advice. Funded entirely by the credit industry.
Website: http://www.cccs.co.uk - Citizens Advice Bureau: Offers free, independent and confidential advice about a whole range of topics including dealing with debt problems – from more than 700 locations throughout the UK.
Website: http://www.adviceguide.org.uk
From my banking days, I know banks and building societies generally don’t freeze interest payments or reduce repayments until you have seeked advice, so the sooner you do the sooner you will be free of debt!!
Do NOT delay – the longer you leave it the harder it becomes to deal with – seek help and advice ASAP!
Debtors owe 17 times their monthly income!!
Can you believe it – I just came across this article in the Guardian, stating that People seeking debt help from Citizens Advice owe so much money it would take more than 75 years to clear their borrowings at an affordable rate.
Citizens Advice said the number of people seeking help with credit card and loans debts had doubled during the past eight years and accounted for three-quarters of the 1.25m new debt cases its bureaux dealt with last year.
Are you one of those people? I hope not, but if you are in debt, remember to face up to it and take the necessary action.
Have a debt management plan and you will succeed in beating the debt.
Stay positive and don’t let your money problems beat you – make sure you beat it!
Beat Debt – well, destroy debt!
I’m forever seeing headlines about personal debt increasing and it annoys me that people still don’t know what options are open to them when they get into a cycle of debt.
Money problems are damaging to a person and can affect their relationship with friends and family – so it is important to do everything you can to get out of debt!
So, to start with here are five key things to remember:-
1. Borrowing more money to pay off your debts is NOT always a good thing.
2. Make sure you HAVE A PLAN to get out of debt – and take action!!
3. Do NOT ignore your money problems.
4. Seek advice.
5. Look at ways of increasing your income.
I’ll be expanding on these and other money issues in the future.