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Debt Management

A trustworthy debt relief company can only help you – Know more

Most of us won’t like to begin the New Year looking at a long list of debt relief services. However, restricting your debts is one of your primary concerns if you truly wish to improve your personal finances.

Your credit situation can certainly be improved if you follow the tips mentioned below. A majority of us don’t have the time to look after our personal finances, although it really helps when we check out our individual credit situations. That’s one reason why so many of us are now reaching out to debt relief services.

Look for an organization of good repute.

Acquiring memberships of esteemed organizations or quality accreditations demand adequate time and dedication from a service provider. A company that wants to draw quick money and make a fool of its customers won’t spend too much time into this. Inferior services don’t engage trained professionals or complete paper-works. NFCC and AFCC are amongst organizations that have websites presenting lists of renowned debt relief services. Once you go through these lists, it will be easier for you to pick the right company. Reliability of these services can be easily understood once you read through the membership criteria of these organizations.

Acquire referrals from the ones you love.

Earning referrals of quality debt relief services from your loves ones is a natural thing, since many of them may have gone through similar situations in the past. You may find effective guidance under a certain company that had helped a friend or relative in the past. At the same time, you’ll need to go through the situation experienced by your loved one and not rely too much on such referrals. A referral doesn’t guarantee an experience that will surely yield positive outcomes. Success often depends on the particular agent that handles your case and your individual financial situation. You must look for a different debt relief company in case a particular company doesn’t feel right.

Conduct your own research before arriving at a contract.

You must study the way your chosen company works, even when you’re about to work with a reputable organization. Doing your own research may bring out facts about your chosen debt relief company that you must take into account. All reputable debt relief companies reflect the true nature of their services through testimonials and reviews posted by their past customers. You may come across positive reviews or complaints filed against your chosen company while searching for accreditations offered by renowned bodies like the BBB.

Understand the law and identify your rights.

There are laws governing the operations of any debt relief company, hence you must identify your rights. Websites like FTC.gov are likely to show you through the telemarketing rules governing various sales processes. Scammers often pose as legitimate businesses and rob consumers of their hard-earned money. Promising outcomes that don’t quite seem realistic and demanding charges upfront mostly signify such scams. Rules have been imposed to protect consumers from such attempts. You’ll need to analyze the overall financial situation and trust your instincts before you pay for these debt relief attempts. Feel free to express your concerns, if you feel skeptical about something. You may choose to work with a different debt relief agency if the policies of your favorite agency don’t seem agreeable. In the end, a reliable service provider can only pull you out of your debt burden.

Debt Management

Can You Be Addicted To Payday Loans?

I don’t condone or approve of the use of payday loans but I can see why people would use them.

 

Some people are just in the situation, where if they have an emergency, they need to get cash advances in order to get by.

I’m not really going to argue whether they are good or not but I do begin to wonder if they could be considered an addiction.

If someone comes to rely on them and feels like they can’t get by without them, are they addicted?

Trying to live without payday loans when you have been relying on them just to survive can seem impossible.

Doesn’t that seem like it’s an addiction?

I watch the show Intervention, which is about addiction to drugs, and the way people act ashamed for using drugs, yet can’t stop, seems like the same symptoms that people who are deep into payday loans have.

Think about it like this, a person addicted to drugs usually wants to stop but can’t because they don’t feel like they will be able to get clean. There are ways to get clean, but they just don’t want to take it or feel like it won’t work.

People that are deep into debt with payday loans feel like they have to keep using them to get by. Yet there are ways to get out of the cycle. But they feel like there is no other way or they don’t want to take any other way.

I’m really interested in this because if it is an addiction, then people that are constantly getting  payday loans should be flagged and offered help.

There’s no reason someone should go back week to week to get a payday loan. That just means there’s a problem and they need help.

I mean, if someone uses a drug once or twice a year you wouldn’t think that they need help, but if they used it every week then you would think they would.

I think payday loan companies can do good/be there for you in time of an emergency (They wouldn’t be my first choice), but I think they need to put in safeguards for serial loanees in order to be seen as less of a bad member of society.

What do you think?

Debt Management

Ideal Debt Solutions to Think About

Are you mired in debt but you can’t think of any ideal debt solutions to help you overcome your financial problems? You are not alone; millions of people around the world are stuck in the rut trying to overcome their financial circumstances. However, the lack of knowledge on the available debt solution options is holding them back from making the significant strides in their financial health.

Don’t be caught in the same hamster wheel. Be informed. Educate yourself about the following debt solution options so you can make the decision that is best for you and your wallet.

  • Personal debt management. Debt management, also known as debt consolidation, is all about making a more favorable arrangement for your financial obligations. Say you are dealing with 5 different credit card firms over credit card debt; consolidation allows you to pool together the credit so you only end up talking to one lender. This way, you can standardize your payments and make sure you are not leaving any one debt behind. To know more about debt management, talk to expert financial advisors who will show you options on how best to manage your debt.
  • Debt management switching. Just because you are in a debt management plan does not mean things are working out well for you. In fact, bad debt management plans put you in a tighter bind than if you were not consolidating debt. But fear not; you always have the option to switch your plan to something more favorable, one that has lower fees, and with a shorter projection for debt resolution.
  • Individual voluntary arrangement. An IVA is essentially an agreement between you and your creditors that you will settle your debt via fixed payments provided some terms are agreed on to help you get back on your feet. You can get interest and charges frozen with an IVA so you only pay for the debt you have today. Instead of filing for a bankruptcy, you can use an IVA instead as a healthier alternative.
  • Bankruptcy. If push comes to shove and you don’t have any more options, consider filing for bankruptcy protection so you can focus on resolving your current situation via use of your existing assets. Bankruptcy is never a fun option for debt resolution but if you are to do it, then better do it correctly.

Don’t lose hope because you cannot deal with debt problems today. Exploring these ideal debt solution alternatives will put you on the right way to recovery so you can regain the personal financial freedom that you have lost due to debt. 

Debt Management

Pay-day loans – the fast, convenient and user-friendly was of borrowing money

Payday LoansPay-day loans are like any other loan products in as much as they need to be treated with respect and due caution. The fact of the matter is that most people have to borrow money at some point in their lives. Whether that borrowing takes the form of a mortgage or a pay-day loan from payday loan giants Wonga – they’re all loans. They all involve paying back interest of the original loan amount, and they all have to be repaid within a certain time frame.

An alternative to traditional bank loans

Pay-day loans have received a certain amount of bad press, but it’s not the actual product that’s at fault as much as some of the borrowers. The fact of the matter is that pay-day loans offer a new, modern alternative to traditional borrowing. In an ideal world most people will approach their bank for a loan. They offer flexible loan amounts, flexible repayment periods, and good rates of interest. But there is a problem.

The problem with banks is that the majority are so staid and stuck in their ways. They’re trying to reinvent themselves, but their hearts are not really in it in the same way as they are in the new Fintech start-ups that are setting up shop and challenging the old financial regime.

The loan application process from a traditional banks can be long and drawn out, and quite invasive. A large percentage of loan applications never succeed. This is where pay-day loans really score. The application process is fast and efficient. In most instances it can be carried out entirely online, which is something that suits South Africa’s young generation down to the ground. Banking innovation is key according to the Africa Progress Panel, and South Africa is not short of innovation.

Higher interest but over a shorter period of time

Admittedly the amounts lent out are relatively small. The initial pay-day loan product that market leaders Wonga (South Africa) has a ceiling of R2500. Given the fact that the loan period is so short (typically no more than 47 days) the interest charged has to be much higher than the interest on traditional bank loans, but it has to be that way in order to be viable for the lender. Its why these products are referred to as high cost short term loans (HCSTLs).

The advantages of speed and convenience

The beauty of pay-day loans is their speed and convenience. This is their main attraction; but it can also open a loophole for unscrupulous borrowers too; those who have little intention of paying the loans back if times are tough, and this is how some of the bad press originates. Even though most pay-day loan companies are responsible lenders, in order to make the loan application process as fast and user-friendly as it is, it does open the door to some “fraudulent” applications.

Responsible lending and borrowing is good for the South African economy

The majority of people who apply for pay-day loans do so carefully. They weigh up their options, and make sure they can pay the loan back when it is due. Having done their research carefully, some people are now beginning to use pay-day loans to start up their own on line businesses. According to a recent article in The-South-African.com there is a tough start-up market emerging, mostly reliant on self-funding.

Pay-day loans are a good product that offers an alternative form of lending. With responsible lenders and responsible borrowers, they can add a significant boost to the South African economy.

Debt Management

Solutions To Getting Out Of Debt

It is a sad fact of life today that many people suffer from debt problems as a result of the financial squeeze and recession. Whilst in the bad old days the only option for escaping debt was bankruptcy, these days there are better and more tailored solutions to help get individuals or families back in control of their finances.

For those with debts of less than £15,000 a wide range of options and support exists to help solve the problem. Companies such as payplan.com can help to work out a debt management programme that works within your budget and is acceptable to your lenders. There is no need to even consider bankruptcy as an option when skilled help is on hand to find a workable solution to making ends meet.

For those with debts in excess of £15,000 it may be advisable to consider an Individual Voluntary Arrangement (IVA). This plan was introduced in recent years to help people to avoid bankruptcy and work out a structured and legally enforceable debt management plan between lenders and borrowers. It may be that at the end of the IVA period (usually 5 years) any remaining debt can be written off. This has to be arranged through an authorised insolvency practitioner but companies such as payplan.com have a number of professionals on hand to talk through your options and arrange the best plans to ease your debt problems.

So whether your problems come from mortgage arrears or credit card borrowing there is generally always a way to get back in control and rarely the need to consider bankruptcy. This really is the final resort to clearing all debt problems but can have many long lasting and penal consequences for your job prospects and future credit rating. Whilst an IVA may impact your credit rating and make borrowing more difficult, the details are not published and no one need know unless you choose to tell them. If considering bankruptcy then get free advice before you act from any debt management company such as payplan.com.

Whilst problems caused by debt rarely go away unless you take positive action, help is at hand and free advice is available so you can always know what your options are. In addition to payplan.com free advice can be sought from your local office of the Citizens’ Advice Bureau. Avoid bankruptcy and act today to sort out your debt problems fast.

Most lenders would rather have you repay over a longer period than not at all. That means that monthly payments can be eased by arranging with them for a reduced amount over a longer period of time. If you have a number of lenders then looking at a debt consolidation loan or using website providers such as payplan.com can ease the burden of liaising with them all to get a manageable plan in place.