Tuesday, 4 August 2009

Top 10 ways to ride the recession

posted by debts.org at 23:40

1. Pay off your debts

If you have any spare cash, use it to pay off your debts. Money saved on your mortgage for example could be used to pay off credit card debts or store card debts or a bank loan.

2. Increase your mortgage payments

If you are benefitting from an interest cut, then why not put your savings towards your mortgage, which can help you avoid any unnecessary or unexpected debt in the future. You will own your own home quicker and you will stand a better chance of refinancing to a better mortgage rate.

3. Open a savings account

Any spare cash you have from interest rate cuts which affect your mortgage can be put into a high interest savings account. Treat this as your ´rainy day´ money and you could earn as much as 10% interest on your money per year. Shop around for the best deals which will see you save money, and not have to worry about debt problems in the future.

4. Invest in the stock market

Take advice and consider investing in the stock market. The best way to make the most of a falling market is to make regular modest investments which won´t break the bank and could include equities and bonds. You could invest your mortgage interest cut saving on the stock market or in premium bonds. Alternatively, avoid debt and debt management solutions by investing your money in an ISA.

5. Payment protection insurance (PPI)

You could invest in payment protection insurance on your existing mortgage or bank loan, which would give you some breathing space if you are made redundant or suffer an accident or injury at work. PPI will normally pay for 12 months of your mortgage if unexpected events leave you without an income, but make sure you read the small print first. Thousands of PPIs have been mis-sold over the past few years, and you can now reclaim money spend on these schemes through reputable and regulated debt advice companies.

6. Invest in your children

If your child was born after 2002, they are automatically given a non-refundable Government trust fund voucher which they can access when they are 18. Help to make their future easier by opening or adding to a child trust fund which is tax-free. The maximum amount which can be paid in to a child trust fund is £100 per month, but this can accumulate to more than £35,000 in the next 18 years. Don´t overstretch yourself if considering a child trust fund or you could end up in debt yourself, but start by paying a modest amount in each month.

7. Pension fund investment to avoid debt

Invest in a pension fund if you have any spare cash, and you will reap the rewards in later life. There are plenty of pension options available to you so take your time to find the right one for you. Beware of investments that carry a lot of risk, or you could find yourself experiencing debt problems and seeking debt advice or even arranging a debt management plan.

8. Consider a health cash plan

Health cash plans can reduce the amount you pay for health treatments. Similar to health insurance policies, health cash plans are less expensive and can be used against medical fees and expenses for opticians, dentists and doctors. With a cash plan scheme, you pay the initial expense of treatment and then claim it back from your cash plan provider.

9. Private school fees

If you are planning to send your children to private school, you can start to save the money early in a tax-free insurance policy until your children reach school age. You may also be able to pay fees early at the current rate which will assure your child´s place at private school in a few years time. Millions of people in the UK are suffering debt problems and seek free debt advice and help every year from free debt solutions companies who can arrange debt management plans, independent voluntary arrangements and even bankruptcy.

10. Shop sensibly to avoid further debt

The Government is hoping, by cutting interest rates that the general population will be out there shopping in the high street again, and spending the money they have saved on the mortgage. If you already have credit card debts or bank loan debts, give the plastic a break and spend some available cash instead on the basics. Alternatively, use the extra money to pay off some of your credit card debts to make life easier.

Debts.org offers people with debt problems a way out. Offering free advice and guidance about debt management plans, Individual Voluntary Arrangements, bankruptcy, reclaiming unfair bank charges, reclaiming mis-sold payment protection scheme cash or simply offering a shoulder to cry on, debts.org helps people in debt in every major town and city in the UK, including Liverpool, London, Leeds, Swindon, Poole, Blackpool, Burnley, Liverpool, Ipswich, Telford, York, West Bromwich, Peterborough, Stockport, Stoke, Brighton, Gloucester, Watford, Rotherham, Sheffield, Cambridge, York, Nottingham, Leicester, Manchester, Bristol and Birmingham. Call us free for free advice on 0844 277 7999 or fill in the online form.

Labels: Blackpool, Burnley, Ipswich, Leeds, Liverpool, London, Poole, Swindon, Telford

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Monday, 3 August 2009

Top ten list for first time home buyers

posted by debts.org at 23:44

If you are a first time home buyer, make sure you get the right advice and help with your mortgage arrangements. There are so many mortgage deals available nowadays, that you need to shop around and make sure the mortgage you choose is the right one for you. Thousands of people get into debt and seek debt advice every year when they fall behind with their mortgages and some even face home repossession. Make sure you get the mortgage to suit you and don´t be palmed off with the first one that is discussed. This is your house, your future and your mortgage, and by taking your time to find the right mortgage you can avoid debt problems in the future.

1. Help and advice to avoid debt

Seek the help and advice of a good mortgage broker who will explain Zero mortgage deposits, capped rate mortgages, fixed rate mortgages and flexible mortgages. Don´t be afraid to ask questions. Buying a house is probably the biggest purchase you will ever make in your life so take your time. Choosing the wrong mortgage could mean you end up with serious debt problems later on. This is one of the biggest decisions you will ever have to make in your life, so make it carefully.

2. Arrange a mortgage before you start searching for a house

One of the biggest mistakes first time home buyers make is to find their ´perfect´ property before they know how much they can borrow. The risk then is that they over-borrow and find themselves in debt and seeking debt advice or help a couple of years or months down the line. Firstly, find out if you can get a mortgage and how much for. You can then apply for an agreement in principle. This will cost you nothing and will not tie you to any one lender, but will give you a good idea of how much money you can borrow. Take your time to get the right mortgage deal for you and you can avoid debt problems further down the line.

3. Understand your finances to avoid serious debt problems

Go through your finances with a fine toothcomb to make sure you can afford the repayments of any mortgage you take on. Serious debt problems can arise if you borrow too much money and then have problems paying it back. If you choose the wrong mortgage terms and conditions you could end up facing house repossession and seeking debt advice and help. Contact Experian or Equifax for a copy of your personal credit history and if your credit rating is low, take steps to improve it.

4. Bad debt and poor credit rating

Often, only after first time buyers have submitted a mortgage application do they find out about their poor credit rating. This can create problems with borrowing money, and it is a good idea to check your credit rating before applying for a mortgage. Save time by checking your credit rating early on, and avoid debt problems later. If your credit rating is low, you may not even get a mortgage, or if you do, you could end up getting less than you bargained for.

5. Budget for the extras to avoid debt

Bear in mind that your new home, even if it has been recently built, will need furniture, and an older property may need extensive renovation. Consider all the extras before making an offer, and make sure you can afford it. Stretching yourself to afford an expensive house may seem like a good idea at the outset, but can cause serious debt problems and even house repossession later on. In your list of expenses, also include stamp duty, duty land tax, surveying and conveyancing. Look out for hidden extras which can trip you up if you don´t consider them at the time of taking a mortgage.

6. Monthly household bills

When you buy a house, you need to consider all of the ongoing expenses that come with it. In addition to monthly mortgage repayments, you will be liable to pay council tax, service charges, household repairs and utility bills such as gas and electricity. Work out how much the monthly bills are likely to be before applying for a mortgage. You can look on several utility comparison sites on the internet to give you an idea of how much you are likely to be paying in your area each month for gas and electricity.

7. Information to avoid council tax debt

If you are viewing the property with an estate agent, ask them which council tax band the property is in, to avoid debt problems later on, and how the local authority levies the charges. Council tax is a contentious issue, and you don´t want any nasty surprises with high charges after you have bought the property. Check the local rates bills before committing yourself to buying a property, and make sure everything is clear in your mind before going ahead.

8. Research the area to avoid debt when you want to re-sell

We have all heard the horror stories about house prices plummeting after new roads are built close to properties, or groups of travellers come to reside on your doorstep, but you can help avoid debt problems in the future by researching the area where you want to buy. Look at what is selling and for how much. All sorts of factors can add value to your property. Is it close to a bus route for example, close to shops and amenities, and close to schools? All of these things will add value to your property, meaning you will avoid negative equity in the future.

9. Local transport to work

When viewing properties, ask about local transport links and work out how much time you will add or lose by moving to the area. If you are moving to the suburbs of a city because property is cheaper, don´t lose out by having to pay sky-high transport prices to commute. Buyers can often be swept away by the feel-good factor when viewing their ´dream home´ only to realise a few months down the line that it is in the wrong area or that local amenities are not up to scratch.

10. Clear your debts and feel at home

If you have any outstanding debts, or debt problems, seek debt advice in the UK before applying for a mortgage. You may be instructed to clear these debts before you are offered a mortgage, to ensure you don´t suffer more debt problems in the future. Have a good walk around the area to make sure it is the right place for you to buy a house. Are there shops, pubs, leisure facilities close by? Would you feel safe walking home at night? Don´t make any split-second decisions just because you like the property. There are a lot more things to consider.Debts.org is a specialist debts advice company who can help you get out of debt, offer you a debt management plan, an Independent Voluntary Arrangement, reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Leeds, London, Preston, Stockport, Middlesbrough, Oxford, Poole, Telford, West Bromwich, York, Slough, Gloucester, Cambridge, Exeter, Rotherham, Reading, Nottingham, Burnley, Bradford, Leicester, Bristol, Hull or any other UK city.

Labels: Cambridge, Exeter, Gloucester, Leeds, Liverpool, London, Middlesbrough, Oxford, Poole, Preston, Rotherham, Slough, Stockport, Telford, West Bromwich, York

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Thursday, 30 July 2009

Ten ways to get out of debt

posted by debts.org at 03:16

If you ignore debt problems, and fail to seek debt advice or arrange a debt management plan, your finances can spiral out of control. You could be seeking debt advice in London, Birmingham, Liverpool, Leeds, Sheffield, Bristol, Manchester, Leicester, Coventry, Hull, Bradford, Stoke, Wolverhampton or Nottingham and not know where to turn. Before you seek the help of debts.org, try to face up to your debt problems, and consider the following:

1. If you owe money to more than one creditor, put your debts in order of priority. Any debts that could result in you losing your home, or being cut off by the electricity or gas board, should be addressed first. If your debts only consist of credit card debts, or store cards, try and pay off the one with the highest interest rate first.

2. Draw up a monthly budget, which will give you a clear picture of how much you have left each month to spend on debt repayment. Write down details of everything you spend in a month and see where you can cut back to free up some more money to pay your debts. You may be able to take advantage of a debt management plan, which a specialist debt solution company could arrange for you with your creditors.

3. Consider switching to a cheaper credit card, preferably one that is offering 0% balance transfer for a limited amount of time. If you do this, destroy your old card which will still prove a temptation to you once it is balance free. Credit card debt is one of the most common forms of debt problems in the UK.

4. Write or call the banks or credit card providers to cancel your account with them if you no longer wish to use your cards. Otherwise, when the date of the card expires they will send you another one regardless, tempting you to get into more credit card debt.

5. Always pay above the minimum required payment when possible. The more you pay, the less it will cost you in interest rates. Credit card debts in Plymouth, Southampton, Reading, London, Derby, Dudley, Newcastle, Northampton, Portsmouth, Luton, Preston, Milton Keynes, Sunderland and the rest of the UK are rising.

6. Move your mortgage if you can get a better deal elsewhere. Also look to switch your phone, gas or electric providers to free up more cash for immediate debts. Mobile phone providers are always offering cheaper deals than their counterparts, and as this is such a competitive business, it is worth shopping round for the best tariffs and deals. If you are looking for debt relief or debt solutions in the UK, or you simply want debt advice in Norwich, Walsall, Bournemouth, Southend, Swindon, Huddersfield, Poole, Oxford or any part of the UK, seek the help of a specialist debt management company.

7. If you are suffering debt problems and looking to increase your income, look for a part time job. You can also earn extra money by clearing out your house and selling unwanted goods in the local paper or at a car boot sale. Also look at buying and selling on e-bay. This is an online auction site which is accessed by millions of people.

8. Seek specialist advice about debt management plans, IVAs and even bankruptcy before setting the wheels in motion. Often, debt solution companies will contact your creditors on your behalf, and arrange for you to take out a debt management plan, meaning you will have manageable monthly payments and a debt-free future.

9. Always acknowledge your creditors and never ignore credit card bills and letters asking for money. If you bury your head in the sand, your debts will continue to grow, which could result in court action against you.

10. Seek advice from the National Debtline, the Consumer Credit Counselling Service or debts.org who can help you resolve your debt problems. If you are looking to arrange a debt management plan, an IVA or you would like free debt help and advice in Middlesbrough, Blackpool, Bolton, Ipswich, York, Peterborough, Stockport, Brighton, Rotherham, Cambridge, Blackburn, Colchester, Oldham, St. Helens or any other part of the UK, contact debts.org today on 0800 320 0923 or fill in the online form.

Labels: Birmingham, Coventry, Hull, Leeds, Leicester, London, national debt line, Newcastle, Nottingham, Preston, Reading, Sunderland, Wolverhampton

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