The Big Money Guide

Tag: debt advice

  • How to Stay Out of Debt This Christmas

    How to Stay Out of Debt This Christmas

    Last year the Money Advice Service (MAS) carried out a survey the results of which indicated that approximately 34% of Britons feared they would end up in debt after spending too much over the Christmas period. The organisation says all the information at its disposal indicates that this did indeed happen. Getting in debt is never good but if you need professional help then David Boehrer Law Firm may be able to help!

    Very often, it’s simply a lack of financial planning (and restraint) that causes people to end up with money problems after the Christmas period. This is why MAS decided to publish a number of tips to assist people with their financial planning this year. I think gordonlawchicago.com would provide excellent assistance to those struggling with their planning.

    The organisation says that the first step is to draw up a budget for the festive season to make sure you don’t spend more than you can afford. Draw up a list of holiday expenses such as Christmas dinner and gifts and if necessary cut down where it’s needed.

    christmas money

    Buying gifts long before the time will enable you to make use of special offers and discounts, while waiting until the last moment will inevitably end up being more expensive. Don’t forget the online option – there are often great discounts on offer from online stores this time of the year.

    Cut down on non-essential items such as eating out for lunch or buying expensive takeaways. Also, consider cheaper alternatives for Christmas gifts. It is, after all, the thought that counts, not the price of the gift.

    As Jane Symonds of MAS rightly points out: “Christmas can be an expensive time of year, but it’s important to know that you don’t have to live beyond your means to make it a fun time, especially if you plan well in advance – after all, it does come every year!”

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  • How do consolidation loans compare to debt management?

    How do consolidation loans compare to debt management?

    If you are struggling to make payments on loans, overdrafts and credit cards at the end of the month, you may have looked at ways to solve your debt problems. Amongst the solutions you could consider, a consolidation loan or a debt management programme are two popular options. We have taken a look at both to identify a few factors that you need to think about when considering the best way to escape from your debt.

    What is a consolidation loan?

    A consolidation loan is designed for somebody that is struggling to pay back multiple debts. The idea behind this type of lending is to put multiple debts into one payment. This makes managing money easier as there are fewer payments to juggle with. It is also possible that the consolidation loan is taken out over a longer period of time than the original credit in an effort to make the monthly payments cheaper. The consolidation loan is used to pay off the other debts, so you then owe money to the firm who gave you the loan, rather than your original creditors.

    What is debt management?

    Debt management works in a totally different way. It is all about negotiation with your creditors to extend the repayment period and reduce the interest that you have to pay. Each case will be assigned a knowledgeable and well-connected advisor who will communicate with the creditors so you don’t have to. That means an end to hassling letters and phone-calls; the only person that you have to deal with is your one and only point of contact at your debt management company. This will be an immense relief to those who have experienced the stress of dreading every letter that comes through the door or shivers whenever the phone rings.

    In many cases the negotiator will already have a relationship with the biggest lenders, so they will be more likely to strike a deal with them. This deal would likely include an extension of the period over which you could pay the money back. So, that means lower payments and more time, which is the exact thing that is needed when debt is getting the better of you. In some cases, the debt management company may be able to freeze interest on a loan or even reduce the amount that needs to be paid back. Seeking legal help, provided at stelklaw.com for example, can be beneficial when dealing with money issues. It may be an investment but will help you in the long run.

    How do consolidation loans compare to debt management?

    A consolidation loan can also reduce the amount paid out every month and extend the time that you can pay, but there are key differences to consider. The first, is that you will pay back interest on the loan. You must make sure that you check the interest rates and look for any hidden charges before committing to any loan. It is vital that the interest charged on the loan is lower than it is on the debts that you are currently paying. It is not only interest that you should compare; any charges that are levied on the credit you have. Try and work out the total cost of each option before making any decisions.

    If you have found yourself struggling to pay your debts, then make sure you speak to experts immediately. The sooner you start sorting the problem out, the sooner it will be over. A debt problem can only get worse, unless you take action.

    Have you checked if you are eligible for a PPI claim?

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