DIY Debt Management
http://www.opportunityexists.com/finance How to deal with crippling debt?
I am not a financial advisor, I don't even work in the finance industry any more, but if I can share any information I have about finances, it can't be a bad thing.
What can be done when your monthly outgoings are more than your income? There can be various solutions depending on your circumstances, but there is a less well known fact to do with credit cards and unsecured credit. As a former rep of a finance brokerage I know only too welll that many debts are with credit cards and store cards. Here is what I know - being unsecured the card company cannot take legal possession of your house as a lender of a secured loan could. So what can you do about credit cards? Firstly, calculate what you can definitely afford to pay to your credit card company, then contact them and tell them that you cannot make the monthly payments they are asking for (assuming this is the case) and that you can pay the amount you calculated and also ask them to freeze the interest - they might. DOING THIS WILL AFFECT YOUR CREDIT SCORE, but if you have already defaulted on your payments, your credit score is already affected. Another point worth mentioning is to always pay your mortgage first before any other bills, this may seem obvious, to a lender that is a big minus on your credit score. They don't care if you have £50,000 in credit card bills, but if you are just one month behind with your mortgage payments they will act by offering a loan at a higher interest rate or refuse a loan altogether, if you are looking for a secured loan. Why? Because if your home was repossessed to recover a loan the mortgage lender has first call on the property. Also the mortgage lender has to approve any loans secured on the property. Personally, I prefer to try and stay solvent.
There are non-profit charitable organizations which will act as a debt manager on your behalf, do a search on non-profit debt managers to find them on-line.
I am not a financial advisor, I don't even work in the finance industry any more, but if I can share any information I have about finances, it can't be a bad thing.
What can be done when your monthly outgoings are more than your income? There can be various solutions depending on your circumstances, but there is a less well known fact to do with credit cards and unsecured credit. As a former rep of a finance brokerage I know only too welll that many debts are with credit cards and store cards. Here is what I know - being unsecured the card company cannot take legal possession of your house as a lender of a secured loan could. So what can you do about credit cards? Firstly, calculate what you can definitely afford to pay to your credit card company, then contact them and tell them that you cannot make the monthly payments they are asking for (assuming this is the case) and that you can pay the amount you calculated and also ask them to freeze the interest - they might. DOING THIS WILL AFFECT YOUR CREDIT SCORE, but if you have already defaulted on your payments, your credit score is already affected. Another point worth mentioning is to always pay your mortgage first before any other bills, this may seem obvious, to a lender that is a big minus on your credit score. They don't care if you have £50,000 in credit card bills, but if you are just one month behind with your mortgage payments they will act by offering a loan at a higher interest rate or refuse a loan altogether, if you are looking for a secured loan. Why? Because if your home was repossessed to recover a loan the mortgage lender has first call on the property. Also the mortgage lender has to approve any loans secured on the property. Personally, I prefer to try and stay solvent.
There are non-profit charitable organizations which will act as a debt manager on your behalf, do a search on non-profit debt managers to find them on-line.
posted by Colly at 3:10 PM
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