Hard to Find Ways Out of Debt

Let us show you the hard to find ways out of debt and save money at the same time.

It will take some effort on your part but we will help you.

With the economy in both the UK and the US looking distinctly unsteady, it is becoming increasingly essential to control your personal spending.

All parts of your budget are likely to be affected, but with some pruning, your success is more likely.

Before we start, we give you three absolutely essential tips. If you can follow these three tips, your problems will be far easier to solve.

1. Think before you spend.
2. Keep track of your money.
3. Earn it before you burn it.

Always OVER estimate your expenses
and be sure you UNDER estimate your income.

Using our usual easy-to-understand system of providing you with information, all the important points are highlighted in bold text.

Make love - not debt!

“I have enough money to last me the rest of my life,
unless I buy something.” ~ Jackie Mason.

1. Credit Cards. If you do have a card, make sure it has the lowest possible interest available. Shop around. Lenders like to push up their fees. Always pay off any outstanding amount on your card as soon as you possibly can. If you only pay the minimum charge due each month, it could take you years to clear your debt. Aim at a clean slate each month and get out of debt!

For extra help take a look at our other page on credit cards.

2. If you find temptation is too great when you are out shopping and that impulse buys are your downfall – cut up your Credit Cards. You need these hard to find ways out of debt and concentrate on getting any outstanding debt paid off.

When you have successfully cleared your debt think very carefully before you apply for another card. Cash transactions are far better. Hard - but a fact of life! Use our hard to find ways out of debt and sleep easy at night.

3. If you want to buy a specific item on your credit card, ask yourself whether you could afford to pay cash for it. If the answer is 'No', then keep your credit card in your wallet. Don't use it!

4. If your credit card is a 'must' then telephone your credit card company and put a cap on or reduce the amount you can borrow. This will help limit your spending, and make the hard to find ways out of debt much easier.

5. Store Cards – are a definite no-no. The interest rates are usually phenomenal - up to 30%. So again the same advice follows – get out of debt fast, cut the card up and clear the outstanding amount.

6. Keep a careful eye on Personal Loans as the interest rate has increased here over the past four months and is likely to continue. Have in mind to use our hard to find ways out of debt - not to knowingly increase it.

7. Build up a deposit before applying for a mortgage. Mortgages are now very difficult to obtain. There are now 40% fewer loans being granted than there were three months ago. The higher deposit you have the better your chances of securing a mortgage.

8. Make a serious effort to clean up your credit record. Keep our three basic tips above, well in mind.

9. Make a list of your debts in order of priority – rent, heating, credit card, personal loans, overdrafts. This will give you a clearer picture of how you should be managing your finances. Always bear in mind our hard to find ways out of debt facts and act on them.

10. Debt Relief Orders (DRO's) were introduced in early April 2009 to serve as an alternative to bankruptcy for those on low incomes, without a mortgage, with assets of a maximum of £300 and debts under £15,000. If you need one of these DRO's it will cost £90 to execute. Applications can be made on-line and the eventual outcome is much the same as bankruptcy. There is no court appearance necessary.

11. Overdrafts must be watched carefully. Do not exceed your limit as the penalties the banks are now charging are, in most cases, excessive. Just don’t do it! Keep a watchful eye on your current account.

12. If you can, try to build up an emergency savings bank. Even if this just amounts to emptying your purse, pockets or wallet each day of all the small change such as 50p. coins and anything under that amount. Keep this in a jar and you will be surprised how quickly it mounts up if you don't touch it! This is one of the easier hard to find ways out of debt.

13. For detailed information on Banking go to our other page and read about the various banks and their facilities, rates of interest and services etc. In addition to get mortgage advice information that will help explain different types of mortgages.

Should you be in trouble with your mortgage, more information is covered on the mortgate debt and advice page.

14. There has been much written about IVAs and Bob Kingdom, from the debt collection agency 1st Credit, says "The past few years have seen a surge in a number of insolvency practioners offering IVAs, and while they may be the best solution for some, we would advise people to first seek free debt advice from organisations such as www.cccs.co.uk/ or www.citizensadvice.org.uk/ Also worth a try is www.nationaldebtline.co.uk/

15. The best possible advice is make it your dedicated job to get out of debt fast. When you have succeeded, make sure you learn the hard lesson and keep it that way. Good Luck.

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