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Debt Management

Don’t Let Debt Overload You

Debt is a huge burden when it’s accumulated for the wrong reasons. Using credit cards to by the next big thing is never the way to go when it comes to being financially responsible. 

However there are times when debt is ok. For instance, you want to buy a house. Yes it is possible to buy one with cash but that would probably take a decade if not more. So getting a loan for something like that isn’t a bad thing. 

A car loan also isn’t that bad because a car is a necessity for most people. Of course you should be getting it for it’s purpose if you’re going into debt and not necessarily because it’s the best looking sports car available. 

And another time it’s ok to get a loan….a significant hit to your finances. For instance you lose your job and you’re about to be homeless. Getting a loan to cover your mortgage isn’t the worst thing you can do. Of course, you should have cut everything to the bone as far as your expenses. 

Debt is everywhere and most people have it. But don’t let it take over your life.

Surprised at the state of UK consumer loans? View how quickly UK consumers accumulate debt with this live debt ticker.

Breaking down UK loans infographic

This infographic is brought to you by QuickQuid

Debt Management

Three Smart Moves If You Can’t Pay Your Bills

If you’ve always been responsible with your finances, being unable to pay a bill might send you into a state of panic. You may fear damaging your credit score or receiving calls from your creditors.

Unfortunately, this scenario is all too common. We live in tough economic times, and between the rising cost of living and people losing jobs, it has become harder to make ends meet. Even if you’re doing okay today, things can quickly change. While a change in your finances may eliminate your “play” money, being able to keep up with your main expenses might be enough to keep you calm.

Then again, maybe you’re having difficulty paying one or more of your main bills. Don’t panic. Here are three smart moves when you can’t pay a bill.

1. Prioritize. If there isn’t enough cash to go around, pay your bills in order of importance. Understandably, the idea of paying a bill late may leave a bad taste in your mouth, especially if you’re a stickler for timeliness. However, you can’t make money appear from the sky, and paying some of your bills on time is better than paying none. For example, if you have to choose between your electric bill and a credit card bill, pay your utilities first. Yes, you’ll get hit with a late fee from your creditor. But as long as you pay your credit card before it’s 30 days past due, the lateness will not appear on your credit report.

2. Notify your creditors. If you can’t pay your bills, sometimes, the solution is as simple as notifying your creditors. Believe it or not, but your creditors may be willing to assist when you’re in a financial jam. Asking your creditors for a payment extension or taking a skip payment option can remove your immediate stress, thus allowing time to get your finances on track. For this method to work, don’t wait until you’re past due to notify your creditors. The sooner you speak with them, the better. Plus, if you wait until after your payment is due to ask for help, you may be charged a late fee.

3. Consider title loans. Maybe your financial problem is temporary and you need an immediate short-term loan to pay your rent or mortgage. In this case, you might benefit from title loans. Of course, you’ll need to own your car outright to qualify. How does this work? Simply apply for a loan, and your car title acts as collateral. The amount you receive varies depending on the value of your automobile. The repayment terms on a title loan varies and since these are short-term loans with higher interest rates, only apply for financing if you’re able to repay the loan within two to four weeks.

There are ways to overcome financial troubles. Whether you’ve recently lost a job, mismanaged your funds or experienced an unexpected expense, knowing how to proceed can help you get through a money crisis and avoid a bad relationship with your creditors.

Debt Management

Avoiding Interruptions In Your Debt Payoff

Paying off debt requires persistence and dedication. Sometimes in the process of getting the upper hand on what we owe, we can run into situations that threaten to derail our strategy. Some are of our own doing, others are external. Let’s review some of each.

Dealing With Lost-Work Injuries

Let’s face it. No matter what other strategies you have to manage your debt, the only way you can pay it off is to remain gainfully employed. And when you are doing everything right but end up off work because of someone else’s mistake, the damage to your life can extend far beyond a few weeks of missed paychecks. Indeed, everything you’ve been doing to try to improve your financial situation can be undone as quickly as a car can run a stoplight.

How do you respond when this happens to you? You can’t let an injury leave you off work with no money coming in. If you do, a vicious cycle can result in which you hurry back to work before you’re fully recovered. You then re-injure yourself and end up off work again, and so you hurry back to work again, and on and on.

This can’t go on. Mike Pines has represented many injured people who ended up without a paycheck because someone else was reckless. His background in the insurance industry makes him uniquely qualified to confirm the importance of recovering money for lost wages when you’re hurt. If you don’t pursue reparations for the full cost of your injury, your entire financial future is in jeopardy.

Avoiding New Debt

This may seem a little too obvious for someone already struggling to pay off existing obligations. But thanks to the availability of your credit score to would-be lenders, your mailbox may contain daily temptations to consolidate debts by taking out new loans.

You must resist those calls for your attention. Most local banks, employer credit unions, and other local lenders who know you better are a much better option for simplifying a jumble of loans and credit cards. The mail-based offers will feature sky-high interest rates, hidden fees, and interminable payoff calendars. You may think you’re doing better by cutting your payments drastically, but you will be stuck paying on it for much longer. Your total payout will be much more by adding all those extra months.

If you really are struggling to make payments, chances are you’ve checked elsewhere for better options. If you’re only looking at something new because of a flashy piece of mail, do yourself a favor and trash it. Remember, the best debt is the one you never owe.

Bring Home (Extra) Bacon

When you’re just barely making payments, it is much better to expand your income than to try to shrink your payments. For those who are already worked to the max, of course, this isn’t an option. Your health, your family, and your performance at your existing employer(s) demand that you have some amount of down time.

But if you’re just trailing along at 40 or 50 hours of work per week and you’d like to get more aggressive in your payments, investigate some options for other work. Maybe you could perform services through your own business, such as cutting grass. Some people have elderly or ill neighbors who can’t mow their own, and they’ll gladly pay the neighbor to do it for them.

There are also freelance writing jobs, part-time work on night shifts, and there really is legitimate online work. Again, ignore unsolicited offers on email or ads and take the initiative to find reputable employers yourself.

Living in debt is unpleasant. It can dominate your every thought, sapping all the enjoyment from your life. The faster you cut it loose, the faster you can enjoy your friends, family, and work. Do what it takes to speed up your payoff, and get ready to enjoy living again!

Debt Management

Getting Your Car Loan Refinanced Can Be A Great Option For You

If you are struggling with your car loan, and you think that it will not be possible for you to repay the loan on time, one of the best things that you can do is to get the loan refinanced. Refinancing a car loan often seems to be appealing, and there are many people in the recent years that go for this option. If you want, you can also go for the same. However, prior to finalizing your decision, it is crucial to acquire adequate information on refinancing so that you can be aware whether it is a suitable option for you.

Getting The Benefits Of Lower Interest Rate:

One of the most important benefits that you will get by refinancing your car loan is lower interest rate.  If you have a bad credit or no credit, you can check out the rates that you will have to pay on refinancing. This in turn might help you in improving your credit score over the years by means of which you will be able to get lower interest on refinancing. Consequently, you can be assured that it will be easy for you to repay your loans faster and get relief from your burden.

Getting More Money On Refinancing:

If you owe less than the total amount of your car loan, it might be possible for you to access more money with the help of refinancing. As you know that the interest will be lower, things will be easier for you. The loan that you obtain will also enable you to cater to other small requirements like home improvement. Make sure that you the loan that you obtain on refinancing is repaid on time. This will surely create a great impact on your overall credit score.

Flexibility Of Changing Lenders:

When it comes to refinancing, you have the flexibility to change lenders. If you do not have good relation with your current lender, or if it is difficult to get in touch with your lender, you can avail the option of changing lender and switching on to someone that is flexible. However, if you are comfortable with your current lender, you can get your loan refinanced from the same. Thus, it is rightly up to you to decide the lender from where you will get your personal installment loans refinances. On the basis of that, you can enjoy the benefits and advantages.

Lowering Your Payments:

Refinancing loan means extending the term period of the loan in order to enjoy some benefits. For instance, if the current loan term is two years, you can extend it for four years, or more. Thus, if you add few more years to your current loan term, it will be possible for you to reduce your monthly expenses based on the interest rate that you have to handle. It is true that you will be paying for two more years, but you will at least be able to reduce your expenses each month. Consequently, it can be helpful for you in your tough times.

Debt Management

Budget-Wise Tips This Holiday Season: Learn Them Now

Budget-Wise Tips This Holiday Season: Learn Them Now

 

The holidays are here again; the attractive deals, shopping-inspired atmosphere and wild rush to purchase “limited” goods. It is easy to get carried away in the melee of excitement.

Remember, you will have to take account of your finances afterwards. In a survey, about 43% of people admitted to financial regret after the fervour of the holidays was over. You don’t want this to be your lot.

In this post, our financial expert suggests savvy shopping tips that ensure you enjoy the holiday without making mistakes that will cost you, literally.

1.    Value your relationships

Everybody has a list of people they would like to gift something this holiday. However, careful planning is key to avoid putting pressure on your finances. Write down a list of your loved ones and friends. Put a certain amount you wish to spend beside their name. The price limits will help keep your holiday budget in check.

2.    Compare prices with your phone

There are many gift ideas available in all the retail stores. Don’t make the mistake of deciding on the first place you come across, or you may end up paying more when you could pay less. Rather, use your phone to compare the price of the same item in other stores. This should present you with cheaper- even better alternatives.

3.    Don’t put off shopping until it is late

The holiday shopping experience banks on one thing; “limited offers”. Even though some of these items may not be limited, marketers use the scarcity principle to drive sales. When you buy early, you are somewhat immune to this effect. Moreover, you don’t get involved in the rush that is common with late shopping sprees. It is safer and more wallet-friendly.

4.    Research your options thoroughly

During the holidays, most people are in a hurry to secure the ‘best deals’ that they let down their guard. Online fraudsters capitalise on this to scam unsuspecting shoppers. Beware of deals that appear too good to be true.

Always research the vendor. Protect the details of your current account (or any other bank account) online. Watch out for fake websites, phishing scams and products that are not really there.5.    Consider making gifts

The beauty of giving gifts to loved ones is that it doesn’t have to be expensive. As they say, the joy is in the gesture. If you are good with your hands, put on your creative hat and get crafting. There are many good ideas on DIY websites. Consider beautifully framed photos, cookies for your kids’ teachers, knitwear and so on. They are practical and cost effective.

6.    Manage your spending

Prepare a budget for your expenditures. It is essential to pen down a total amount you plan to spend this holiday. Watch the cash flow and note when you go off track.

It is easier to remain in control when you spot heavy spending early. Factor in additional expenses like delivery and shipping costs so you don’t get caught off guard. If you are travelling, create a travel budget too.

After the holidays, do a review of your expenses and write down lessons learned.