Tuesday, 16 June 2009

Credit Card Counseling Services

posted by debts.org at 03:09

Credit cards and consumers were a match made in heaven – that was until the rot of recession set in and things turned ugly. Now with redundancies looming, the same consumers are desperate to pay off their debts before an axe could fall.

Credit cards are an unsecured form of lending, which means they are a non-priority debt – unlike your mortgage for example. Fortunately for credit card companies this means you are probably paying off the minimum balance while trying to pay more on secure borrowing.

However, there are millions of people unable to pay even the minimum balance on their credit cards and are consistently defaulting, incurring a raft of charges in the process.

Take a look at the following advice on how to clear bad debt – in this case, unmanageable credit cards.

5 Ways to Pay Off Your Credit Card

Organize your cards
If you have more than one credit card, try to pay off the most expensive one first. Pay the minimum on the cheaper credit cards until you have repaid the one with the highest interest.

The higher the interest, the longer you will be in debt.

Negotiate
Try calling your credit card company to negotiate for a lower interest rate. Do your homework first and know how much your current rate is and how much you have been paying to date.

Persevere and ask to speak to the supervisor if you are being fobbed off. Sometimes the sqeaky wheel gets the grease.

Make up any shortfall
Defaulting on your credit card once will incur a charge and possibly terminate any special deal, such as a period of low interest. Defaulting on your credit card several months in advance, or not paying anything at all will probably result in your account being handed over to a debt collection agency.

To avoid this from happening – which is also extremely detrimental to your credit report – pledge to make up the shortfall as soon as possible. Make significant payments until the balance is up-to-date.

Stay within your limit
Exceeding your credit card limit is a sure fire way to incur charges but is also a dangerous sign. If you cannot stay within your limit, the chances of you mismanaging your borrowing and going deeper into debt are high.

Calling the card company as quickly as possible may help you save money. If you can convince them you are determined to pay off your debt, they may be willing to impose a one off flat fee for defaulting.

Balance transfers
Shopping around for cheaper credit card deals will undoubtedly help you reduce debt. A low interest credit card, even for a 6-month introductory period, will enable you to pay off large chunks of your debt. Make sure that when the introductory period ends, the interest rate isn’t higher than the card you are currently on.

For debt advice call 0800 520 0923, or visit our credit cards section for more information on how to clear debt.

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Consumer Counseling

posted by debts.org at 01:44

Consumerism is nothing new and despite popular belief it isn’t wholly associated with the western world. The consumer age dates as far back as ancient Egypt, Babylon and ancient Rome when happiness appeared to work in tandem with consumption. Consumerism then, is consuming over and above what you require and the more you do it, the happier you are. Right?

That has certainly been the message behind the multi billion pound advertising industry that in itself consumes and never sleeps – constantly reminding us that we need to buy to be happy, or to be attractive, stylish, fashionable, loveable etc.

The last fifteen years has been consumerism’s heyday, in modern times at least. Buy now pay later, generous lending, credit card giveaways, 100% mortgages, to say nothing of holidays, cars, home entertainment systems and one family mansions.

'Consumer counseling' was not a term we often heard in the 90’s and the early part of this decade. In fact, prior to the sub-prime crisis of 2008, you would be forgiven for thinking it was an agency set up by consumers for consumers – ie don’t go to Selfridges for that Gucci belt when you can get it slightly cheaper at Harrods.

Debt management may have been considered an oxymoron. After all, debt is perfectly normal and therefore naturally unmanageable – since when was debt supposed to be managed?! Times have changed and consumerism is in its death throws. Of course it has been seriously wounded before but has come back to live another day. This time however, things are different.

Japan’s recession of the 1990’s lasted a decade and it took hard work, the manufacturing of affordable products and some pretty tough lessons before it could climb out of a very deep hole. However, it had one advantage over the recession facing the world today – it had countries to which it could export.

When the whole world is in the hole, including again Japan and even Dubai, there is nobody around to pull it out. Consumerism for that reason may die before anyone can resuscitate it.

So where does that leave today’s consumers. For one we need to change our thinking, for instance, the car doesn’t need changed every two years, the TV picture may not be high definition but you can still watch Corrie on it and restaurants are for special occasions only. The list goes on, quite a long way in fact.

We may kick and scream a little at first but we will change, simply because we must. Consumerism can no longer support us and vice versa. It was a relationship that was destined to turn sour, but we couldn’t see it while we were still living the honeymoon. Now jobs are going, mortgages are in arrears, bailiffs are at the door and you can’t get credit if your life depended on it. Yes, darling, the honeymoon is well and truly over.

For debt advice call 0800 520 0923.

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Credit Counseling Companies

posted by debts.org at 01:39

Credit counsellors are forced to turn desperate consumers away because they are unable to cope with the scale of the economic crisis.

Consumers have been turning to professional debt advisers in increasing numbers since the recession went into overdrive towards the end of last year. Job cuts, redundancy rumours and business closures has put huge numbers of consumers on the bread line – it’s estimated that one third of mortgages are in arrears by at least one month.

Even for those who have so far managed to escape redundancy, creeping insecurity has forced many to turn to credit counselling companies.

Milva Gaudiosi a debt adviser at Debts.org said: “Debt charities cannot single-handedly deal with the amount of people needing urgent help with their finances. People are now coming to other debt companies, such as us, for credit negotiation services. We are negotiating with creditors for lower repayments as part of a Debt Management Plan – one of the most sought after debt solutions.”

Britain’s consumers have been forced to change the way they handle their finances and for many the days of ‘shop ‘til you drop’ are over. Commentators across all forms of media have been in unison when saying the consumer generation is in demise. It is a bitter pill to swallow, but debt reduction programmes such as a DMP are forcing many people to take a more responsible approach to money. For others, bankruptcy and repossession are sadly unavoidable.

“It’s clear that a change in the way people handle their finances has come too late for many, and there is no telling how long it will take until we see the actual result of this recession,” said Gaudiosi. “The important thing is however, that no matter how bad it seems there is often a solution and we urge everyone in trouble to get help as soon as possible.”

Debt charities such as Citizens Advice, CCCS and National Debt Line offer free debt solutions and will negotiate with credit card companies and banks on behalf of consumers. However, long waiting lists are a problem and many people are missing repayments, and incurring charges as they wait for debt counsellors to clear their backlog.

If you cannot wait, contact us for free advice on 0800 520 0923. Or visit our section on debt counseling.

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Friday, 12 June 2009

10 Reasons to Choose a Debt Management Plan

posted by debts.org at 06:06

Debt Management Plans are something of a knight in shining armour for many people struggling under the burden of unmanageable debts. While a debt management plan isn’t the stuff of fairytales, it does offer many consumers the chance to get out of debt without ruining their credit rating.

Credit score damage limitation is just one reason to choose a debt management plan but there are 10 other attributes to consider.

1. Hassle free – setting up a debt plan is quick and straightforward

2. Flexible – when your circumstances change so too can your repayments

3. Not legally binding – there are no legal contracts to worry about

4. Reduce monthly payments – pay creditors what you can afford

5. Stop creditor harassment – joining a debt plan will give you breathing space

6. Handover all creditor correspondence – Debts.org handle all bills and letters

7. Less drastic than an IVA – you present less of a credit risk with a DMP

8. Cost effective – cheap to set up and all payments go towards your debt

9. Freeze interest rates/fees – save money by having your interest frozen

10. Debt experts handle negotiations – leave payment talks to our professionals.

Find out how a Debt Management Plan can help you or call us free on 0800 520 0923 . We look forward to hearing from you.

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