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Tips for those struggling with debt

Midnight_Caller
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Tips for those struggling with debt

Hi All
Just seen this:
[quote="The Telegraph"]
Tips for those struggling with debt
If you are feeling overwhelmed my a mountain of debt, you may be able to avoid insolvency by taking measures to reduce the amount you owe.

1. Don't put your head in the sand
If you have mounting debt, ignoring the problem will only make it worse. If you are struggling to make monthly payments, have significant credit card debts or use one form of debt to pay off another, you should take action immediately. The earlier you start to tackle your debt, the more can be done to deal with your problem.
2. Analyse your finances
The best way to face problems with debt is to start drawing up a budget. By listing all your income, expenditure and credit commitments for each month, you will create a clear picture of your finances and will be useful when considering options with lenders.
Make sure you have a full list of how much you owe, to whom and when you have to pay. If you have not already done so, contact the people you owe and explain your difficulties – it is in their interests to help you out.
3. Prioritise
Tackle your priority debts first. These have the most severe penalties, such as losing your home or having your gas and electricity cut off.
Pay off your most expensive debts with any cash left over. For instance, store card debt which charges you 30pc APR should be paid off ahead of a credit card charging a lower rate of 18.9pc.
21 REPLIES
kdoug007
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Registered: 17-05-2012

Re: Tips for those struggling with debt

I would  also suggest not getting a  iva,,
these  are the ones , that say they will  stop . phone  calls  and  angry  credit  card  companies..
  all they do  is add there bit  to ones  debt  and  spread it...
best thing is  to contact the  card company in  question and  arrange  some  payment  plan
shalom2010
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Re: Tips for those struggling with debt

I wish governments followed this advice!
nanotm
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Re: Tips for those struggling with debt

iva's are a court appointed payment scheme where you the debtor agree to repay a % of total debt over a 5 or 6 year period, part of the mandate is that the practitioner (they guy who oversees day to day running) is the only one who has contact with the various creditors, if a creditor contines to contact the debtor in such an arrangement they forfeit there claim are issued a cease and desist order by the court and ordered to pay costs for all concerned ....
yes they charge a fee to the creditors which comes out of the total debt owed (so the debtor pays no extra) that too is agreed by the creditors and rubber stamped in court
having completed an iva in the past (before the likes of Gregory Pennington started scamming people) I can honestly say its not for the faint hearted but its a good process that works well
just because your paranoid doesn't mean they aren't out to get you
nadger
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Re: Tips for those struggling with debt

Some good advice, Midnight Caller.
With regards to debt advice it's far better to go somewhere like CAB who can help you for free. One does hear stories of debt management companies ripping people off.
Always remember my mum, who died in 1959, used to say " never a borrower or a lender be"
Good advice but not easy to follow in this day and  age.
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Re: Tips for those struggling with debt

Quote from: nadger
... my mum...used to say " never a borrower or a lender be"

My Mum also used to say that......they obviously never had kids Roll eyes
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Re: Tips for those struggling with debt

Quote from: Steven
I wish governments followed this advice!

The MoneyAddvice Service TV adverts wind me up... "stup by the government..." and what the **** would those clowns know about handling money?
All the government do when they're in the **** is raid the nations wallets to get their own debts paid off ASAP. As far as they're concerned our debts are not an issue. Perhaps THEY should go to the moneyadvice service and get their own house in order first before preaching that we should all 'manage' our finances.
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nanotm
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Re: Tips for those struggling with debt

my mum used to say it frequenetly,
the irony of her struggling to pay off a mortgage never seemed to occur to her...
debt advice can be gained from many places but there are more unscrupulous advisers around than reputable ones, I would say that one of the best places to ask anonymously and without conditions would be MSE website, they can put you in touch with a whole network of advisors, with the added bonus you don't have to walk in somewhere and feel like a lemon until you already know what your options are and which one is likely best for you
@Sprite,
the point of the service is to stop a lot of people getting into trouble or to stop them ending up as bankrupt's, the so called clown in charge could easily have jumped the nation into bankruptcy when they took over instead of refinancing ad infinitum but they chose to juggle the figures and crack on because as a nation that is whats best, they even opened up a massive loophole to stop prospective bankrupt's needing to repay there northern rock mortgages, meaning they wrote off that huge unserviceable debt as uncollectable and allowed people to remain housed.
just because you cant see what there doing with the balance sheets doesn't mean they aren't helping the nation to get out of money worries even if there trying ot do it in a fashion that also prevents a run on the banks (because without the banks doing business here the uk is actually bankrupt)
hell there even putting financial planning and management into the curriculum for 11>15's to the future workforce(s) don't end up in the same pitfalls as the current one with stupid amounts of unserviceable debts carried over on the never- never ...
just because your paranoid doesn't mean they aren't out to get you
nadger
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Re: Tips for those struggling with debt

Quote from: Strat
My Mum also used to say that......they obviously never had kids Roll eyes

Trying to work that one out, Strat  Huh
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Re: Tips for those struggling with debt

Quote from: nanotm
@Sprite,
the point of the service is to stop a lot of people getting into trouble or to stop them ending up as bankrupt's, the so called clown in charge could easily have jumped the nation into bankruptcy when they took over instead of refinancing ad infinitum but they chose to juggle the figures and crack on because as a nation that is whats best, they even opened up a massive loophole to stop prospective bankrupt's needing to repay there northern rock mortgages, meaning they wrote off that huge unserviceable debt as uncollectable and allowed people to remain housed.

Thus keeping the housing market afloat and ensuring that the rest of us hoping to get on the ladder can't.
Remember the last recession? House prices tumbled and gave people new opportunity while those who stretched themselves learnt the hard way.
The consequence is that there is now a very large lost generation of people who have no hope and are being put under more and more pressure to bail out the government for people who it chose to support because they have a mortgage.
In essence, us little people are paying for the bigger people to keep their homes. Whats right about that?
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nadger
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Re: Tips for those struggling with debt

Anyone else remember when we were paying 15% interest on our mortgages?  Cry
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Re: Tips for those struggling with debt

Yes, but I also remember getting nearly as much on savings AND getting interest tax relief on the Mortgage.
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Re: Tips for those struggling with debt

Quote from: nadger
Trying to work that one out, Strat  Huh

Simple....the bank of Mum and Dad Tongue
...but that's not what you mean....I love things like that Cheesy
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Re: Tips for those struggling with debt

Quote from: w23
Yes, but I also remember getting nearly as much on savings AND getting interest tax relief on the Mortgage.

Exactly. There is nothing for us in my generation now. We're effectively financial slaves for the previous generations overspending.
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Re: Tips for those struggling with debt

As one of the 'previous generation' I can recall a short period out of work.
I received £4.50 a week off the social and £3 a week went on rent.
I didn't do a great deal of overspending at that time.
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