Juggling Your Credit
If your family finances are in a state and you're juggling with loans and credit card balances to repay other loans, you may feel as though you are sinking in a sea of debt.
But you are not alone.
It may seem as though everywhere you look you're being encouraged to "buy now - pay later" but perhaps it should be termed "buy now - worry later"? Even if you are doing quite well and have managed to rein in your spending, temptation beckons around every corner.
You buy something which is very reasonable and you go to the cash desk.
There shop assistant asks if you have a store card and tells you that if you take one out now, you can have a 10 per cent discount on everything you buy today.
So here we go again -another commitment! The answer could be to consolidate your debts into one consolidation loan but you will have to be disciplined enough to keep to a strict plan of action.
Care has to be exercised though and research has shown that forty per cent of people who get a consolidation loan actually progress to even more debt.
This just makes a difficult situation even worse.
When borrowers are able to keep their spending under control consolidation loans are successful and the overall amount they repay each month can be reduced.
This is because the new consolidated loan repayment is typically repaid over a much longer period than the short-term loans - up to 15 years in some cases.
On average the repayment period is 8 years and with an average loan of around 16,000 pounds.
The key-word when negotiating a repayment loan is flexibility.
Over the long term your circumstances can improve - hopefully your career prospects could improve, or you might strike lucky with a windfall or maybe your youngsters will become financially independent.
Anyway, you should always ensure that if any of these things happen, you can repay some or all, of your loan early without incurring penalty charges.
Industry figures show that men have the edge over women when it comes to the early repayment of loans.
Twice as many men than women clear their loan before the end of the term.
Now whilst the shop assistant is asking you about the store card, it's still possible that the subject of Payment Protection Insurance will arise.
New legislation is coming into force that will stop this being sold at the same time as taking out a credit card (or indeed a loan), but the legislation is not in force yet.
Our advice is do not take it from the finance company.
If you would like insurance cover that will maintain your credit card repayments if you are ill, have an accident, or become redundant, it is very easy to buy a policy online - and it will be considerably cheaper than the policy the shop assistant is trying to encourage you to buy.
Finally, going back to your consolidation loan, do be totally honest with them when you apply and get everything out into the open.
Until you face all your debts, you cannot begin to chip away at them! And if you think you need more advice about handling your debts, consult a debt advisor.
Again you will find one by going on-line.
But you are not alone.
It may seem as though everywhere you look you're being encouraged to "buy now - pay later" but perhaps it should be termed "buy now - worry later"? Even if you are doing quite well and have managed to rein in your spending, temptation beckons around every corner.
You buy something which is very reasonable and you go to the cash desk.
There shop assistant asks if you have a store card and tells you that if you take one out now, you can have a 10 per cent discount on everything you buy today.
So here we go again -another commitment! The answer could be to consolidate your debts into one consolidation loan but you will have to be disciplined enough to keep to a strict plan of action.
Care has to be exercised though and research has shown that forty per cent of people who get a consolidation loan actually progress to even more debt.
This just makes a difficult situation even worse.
When borrowers are able to keep their spending under control consolidation loans are successful and the overall amount they repay each month can be reduced.
This is because the new consolidated loan repayment is typically repaid over a much longer period than the short-term loans - up to 15 years in some cases.
On average the repayment period is 8 years and with an average loan of around 16,000 pounds.
The key-word when negotiating a repayment loan is flexibility.
Over the long term your circumstances can improve - hopefully your career prospects could improve, or you might strike lucky with a windfall or maybe your youngsters will become financially independent.
Anyway, you should always ensure that if any of these things happen, you can repay some or all, of your loan early without incurring penalty charges.
Industry figures show that men have the edge over women when it comes to the early repayment of loans.
Twice as many men than women clear their loan before the end of the term.
Now whilst the shop assistant is asking you about the store card, it's still possible that the subject of Payment Protection Insurance will arise.
New legislation is coming into force that will stop this being sold at the same time as taking out a credit card (or indeed a loan), but the legislation is not in force yet.
Our advice is do not take it from the finance company.
If you would like insurance cover that will maintain your credit card repayments if you are ill, have an accident, or become redundant, it is very easy to buy a policy online - and it will be considerably cheaper than the policy the shop assistant is trying to encourage you to buy.
Finally, going back to your consolidation loan, do be totally honest with them when you apply and get everything out into the open.
Until you face all your debts, you cannot begin to chip away at them! And if you think you need more advice about handling your debts, consult a debt advisor.
Again you will find one by going on-line.
Source...