If you don’t have any credit card debt at the moment, you’re most definitely in the minority, particularly in the United Kingdom. It is well documented that most of us have at least one credit card in our wallets, some of us significantly more. I know I have 4 personally and a couple of store cards to boot also! I don’t worry about it too much as I know that even though I have quite an array of cards, all of them are on interest free arrangements and although of them don’t really carry a significant balance. They’re certainly nothing to worry about anyway. Unfortunately though, there are some people out there who have credit card debt that is simply spiraling out of control and the funds that are being paid towards the cards each month are simply not making a dent in the overall balance. This is something that most definitely needs to be addressed should you find yourself in this situation.
When it comes to debt management, particularly credit card debt, the key is in the interest. More to the point, paying as little of it as possible. Whilst I personally have a fair amount of credit cards I make sure that whatever the balance, I am paying the least amount of interest possible. This is what you need to do also and should be the first step towards making your credit cards more manageable and eventually getting yourself out of debt.

Getting an interest free credit card, particularly if you have a good credit rating is quite an easy task. Most companies offer introductory offers where you can move your current balance (balance transfer) onto their cards and enjoy an interest free period for up to a year in most cases. This way the money you pay towards your card each month is actually going to be going off the card balance and not just paying the interest.

There are numerous debt solutions when it comes to credit cards. Switching to a lower interest card is just one of them. If you seek advice from a third party debt management firm they may also suggestion the option of consolidating all of your debt into a single loan with a single monthly payment.

adminGeneral20 Aug, 2009Comments Off

There is no trick to good financial management and whilst it is true that there are experts and specialists in this field, when it comes to managing your personal, household finances, there is no better person for the job than you personally. Only you know what you can really afford, what you really earn and what you have to pay for. That makes you the best person for the job when it comes to getting you finances in order and setting your monthly expenditure budgets for yourself.

The first thing you need to do if you want to manage your finances correctly is to get yourself a good finance calculator application or a full finance management suit. There are several on the market at the moment such as the set of tools from Kublax that can assist you in managing your monthly income and expenditure down to the very last penny.
Financial calculators are designed for the most part with the home user in mind. You certainly don’t need to have a technical mindset to operate one. Nor do you need to have a background in Finance.
Once you have sourced a good finance calculator application or even a full money management suite, you then need to tell it how much money you bring in each month. Be honest, the software isn’t going to judge you on it and you’re certainly not going to impress it. Once you’ve done that, go through your statements, work out what comes out of your bank each month and the amounts and then enter it into the calculator.

The calculator will then process your figures and work out how much you have to pay and when and most importantly, it will leave you with a figure that is your money to do whatever you like with. This is my opinion is the best thing about setting a budget. Knowing that you’re going to have spare cash for definite at the end of the month!

adminGeneral17 Aug, 2009Comments Off

If you’re currently struggling with your finances, in particular debt, there are a number of things you can do in order to get free debt advice. The best source for free information on debt and money matter in general is online. You can find tons of great articles out there which when used correctly can help alleviate your debt and financial problems.

I have used a number of online finance guides recently with a view of consolidating my personal loans and credit card debts. I found it easier researching the best debt consolidation techniques and methods myself than hiring a dedicated firm. I realise that hours of readings articles isn’t for everyone and I’m sure there is something that I’ve missed so if this isn’t really your thing then it might be worth seeking debt advice from a professional.

Most financial and debt consolidation guides you read tend to say the same thing. To summarsise, you should only really consolidate your debts if you really need to. There is no point getting yourself into even more debt and paying out even more interest than you need to. And even if you do find some great information online, you’re still going to need to shop around and speak to several debt advisers and debt advice companies to be sure you’re getting the best possible deal out there and not signing up to a package that is going to end up costing you more than you’re paying each month already as well as higher interest and longer loan terms.

Debt consolidation is quite straightforward in general and can be done by anyone. It’s not the solution to all of your financial problems and it probably won’t get you debt free any quicker than keeping your existing arrangements in place. But if you’re failing to meet the payments, then it could just be a lifesaver.

adminGeneral14 Aug, 2009Comments Off

Good financial management is all about budgeting. It’s about knowing what is going to leave your account and when. It’s about planning for the unexpected and most importantly not spending more than what you earn and living beyond your means.

I personally believe that everyone should set a month to month budget allocating certain amounts of funds for particular expenses, from your mortgage right down to your month to month grocery shopping. I realise that budgeting might not be high on everyone’s agenda, especially if you have a low income / low outgoings financial situation, but it really can do you no harm. Budgeting allows you to plan ahead, to know what sort of funds you’re going to have left at the end of the month and makes sure that you don’t over spend and leave yourself too short to pay that unexpected bill such as a car repair or other unfortunate, unplanned for event.

Planning a budget is relatively straight forward. We simply need to document what we earn, document our outgoings (planned) and work out the difference. From the funds left over we can then allocate as we see fit. Of course you don’t need to be a financial wizard to plan a budget either. There are some fantastic applications on the market for budgeting and general money management such as the software suit from Kublax. This application has become a god send in my own personal financial management, purely because it remembers what is coming out and when from my numerous bank accounts.

Incidently, Kublax have recently published the results of a survery on the UK spending statistics. There was no real surprise in the report other than the fact that we all seem to spend similar amounts on our outgoings and that we all pay a significant portion of our monthly income towards credit card or loan debt. What was also particularly surprising is how much the difference in rental / mortgage costs are between the North and South of the country. There really is a huge divide.

adminGeneral11 Aug, 2009Comments Off

For those of you who have been in debt in the past and have eventually got yourselves debt free. You will know there is no better way of getting out of debt than with good debt management. It’s not about how much you owe, how much you can afford or your interest rates alone. It’s about how you manage all of the elements of the debt itself. Management is the key is avoiding late charges, penalties, fees and even bankruptcy. It is also the key to eventually getting debt free.

If you’re planning to organise your debt portfolio you could seek the help of a third party such as Debt Free Direct, or you could attempt to get your finances in order yourself. Below I will give a few quick tips on how to get your debt management plan started.

The first thing to know when it comes to debt management is t know how much you’re paying out each month. This is the key to it all. This figure needs to balance correctly and most importantly it needs to be affordable based on your current income. The next thing you need to document is specifically how much you owe and most importantly, how much of the monthly payments you make each and every month are actually going off the debt total itself (and not just interest charges). If you document all these figures, you’ll probably find that the vast amount of your money is going on interest charges.
If you find yourself in this situation, especially with multiple debts, you should consider debt consolidation. By consolidating you will combine all of your current debts into one single, manageable month to month payment. You will most definitely end up paying less than you do each month currently and most importantly, you will be working towards clearing your debts. A company such as debt free direct would be able to help you with this.

adminGeneral8 Aug, 2009Comments Off

An annuity can be a great way to save some money for the unexpected, and it’s also a way to safeguard your finances during yoru retirement. Anyone can invest in an annuity, regardless of how much money they make. In short, annuities are an easy way to make your money work for you.

The majority of retirement plans and employer-sponsored benefit plans are provided under strict contribution and time limits. You can work around this by buying an annuity- the money you’ll get is tax-free, and you can choose exactly how much of your money to invest. When it comes time to collect your payment, you’ll get a percentage, as specified in the annuity contract.

There are different types of annuities, and they are grouped according to their duration and payout type. Investors have the option to defer payment, so that they have money when they need it most. The investor can choose to defer the tax payments on the annuity until they receive their first payment as agreed upon. For those who have loved ones to think about, a joint annuity may be an option- they are a fine way to make sure that your spouse or partner is financially taken care of if something were to happen to you.

adminGeneral6 Aug, 2009Comments Off

If you’re considering getting into an IVA or an Individual Voluntary Agreement, then there are a few things you need to know and also consider. The IVA for the most part acts the same way as a regular loan. Once you sign, all of your debts will be cleared using the funds from the IVA and you will be left with one single, month to month payment that will work towards clearing your debts that the IVA has covered.

A question I get asked a lot if what is an IVA? Well, a typical IVA usually lasts 5 years or 60 months and will stay on your credit record for 1 year after the end date of the loan. Whilst the IVA will indeed stay on your record, if you’ve made payments successfully over the period of 5 years and have not defaulted on any - it can actually work in your favour. Having an IVA on your record does not mean that your credit record is permanently ruined like it can be in situations of bankruptcy. If you’ve made the payments, as you should, you’ll be considered a good financial risk, despite your history.

The IVA is typically a little bit riskier than a standard person or secured loan though however. Should you default on a payment on your IVA plan then you may be forced to file bankruptcy. However, with that said, most IVA agreements are structured in a way that even in your dire financial situation, you’re still able to make the necessary payments on the loan. This is the whole point of the IVA in the first place, to help you get out of debt. No lender is going to sell you an IVA that you can’t afford. It’s no good to them if you suddenly default and are forced to declare bankruptcy.

The IVA is also a particularly popular option, as you’re not charged an arrangement fee from the lender in most cases which can be a big plus.

adminGeneral5 Aug, 2009Comments Off

Despite the current global economic climate, the loan market still appears to be a hot niche. According to several UK debt resources and UK debt news websites, people are still getting approved for loans despite them being bad credit risks and people are still failing to meet their month-to-month financial responsibilities. The main reason for this, apart from the lenders offering their money to the wrong people is the fact that people are choosing the wrong loans for their situation.

There are of course numerous loan options on the market from personal loans to secured loans to homeowner loans. But what is the best option for your situation? Well, it really depends on how much you’re looking to borrow, the term you want to take it over and your current financial situation.
The personal loan for most is often the best option. These loans tend to be fairly risk free, offered over a fairly short 36 – 60 moth term and don’t amass a great deal of interest over the period. These should be used for most personal purchases such as cars, holiday or home improvement. If you’re really sensible, you might also consider a personal loan to pay off some of that spiraling credit card debt.
The secured loan and homeowner loan are also good options. Mainly because you can often get approved quite easily as well as get low interest deals. Lots of people find these loans attractive because of their rates but they do however put your home at risk should you fail to meet the payments. This is a huge risk that people still take for a small loan.

It’s always best to choose the less risky option when taking on loans or credit cards. Even if it means paying a little more interest than you’d get offered elsewhere. It’s not worth putting your home at risk over a few thousand pounds for a holiday or some home improvements.

adminGeneral2 Aug, 2009Comments Off

If you are in a financial bind like many people out here, then you may want to apply for payday loans online. A payday loan is a quick and easy loan that help pay off the unexpected bill. You may have medical bills that keep piling up, but you cannot seem to get enough money to pay them off. This short term loan is what you need to keep you out of the red until your next payday.

Payday loans are designed to give the applicant enough money to stay on top of their bills until the next payday. You may have had a medical emergency, your car broke down, or an extremely high utility bill that really set you back. With payday loans you can payoff bills and stay out of debt with your next paycheck. One of the great things about payday loans is that you don’t have to worry about bad credit because there are not credit checks. These particular loans are good for people who may have fallen behind on their bills due to unexpected financial hardships.

The requirements for a payday loan are you must have a job that pays at least £1000 per month. You do not have to 18 years old. You must be able to pay back the loan with your next paycheck. The reason why these loans are so affordable is because the loan is short term with very little interest paid back. The requirement s may change from each individual institution. There may be more or less requirements so be prepared to bring extra information.

The average loan is roughly around £100 to £1500. The amount of income is the bases for the amount of the loan. You cannot take out what you cannot payback within the next pay period. Payday loans are normally allowed to run for 10 to 31 days. This will allow enough time for the applicant to receive at least one paycheck.

adminGeneral1 Aug, 2009Comments Off