Has Debt Management Disappeared Out the Window?
It’s been exposed that in the preceding 2 years the amount of us in what they are at the present calling ‘extreme debt’ has doubled. The Ministry of Justice is alleged to have announced that lots of us are having to pay as little as 1 pound a month on our debt for up to 6 months. Then we have a tendency to pick ourselves up a little and are able pay more.
Why is this happening? Have we truly lost the knack of excellent debt management have things been made really easy for us that we never developed it in the first place?
Our younger generation have been brought up in a setting which is all about debt. It nearly appears abnormal these days not to be in debt. We hear over and over again the difficulties people get into. Whether its credit card debt, bank loans, store cards or the ever reliable overdraft, it just feels far too effortless to get into debt. The danger however the more typical it is, the more we view it as okay.
Okay we won’t talk about how we should have been prudent in the first place and not overstretched ourselves; or how we gave way to pressure and got that brand new car because ‘No one has an old banger these days!’Those days we must position behind us.
How many of us have endeavoured to manage our credit card debt for example by Debt Consolidation transferring them into a single more handy debt? This is excellent debt management isn’t it? Well yes, if you never go ahead and get yourself into further debt!
Clearly it truly is not all about people being thick and spending too much because they’re having loads of amusement. No there is certainly the darker side to it all. So many of us have lost our employment, been made redundant or cannot perhaps get work at all. We are only just coming out of the slump so we have lots of catching up to do. We’ve toiled for the preceding couple of years and now that things are getting better we grasp our way ahead in repaying those accumulated bills.
It appears like we are still not taking control. I cannot help but speculate if it can be because we feel so bogged down by the every day burdens we cope with. There doesn’t seem time to sit down and sort it all out because we’re to occupied keeping our heads above water. But we can not tread water eternally. We may get extremely fatigued and something will certainly draw us under if we do not take action.
How many of us are still maxing out our Credit Card Debt? Some of the time it is down to awful budgeting. Half the time we won’t know what is in the bank so we make use of the credit card to be sure we’re not going in the red. That’s all well and good but are we paying that balance off once the invoice comes through; Probably not. Why? Since we understand we didn’t have a sufficient amount in the bank to cover it.
Therefore sit down and look at your funds. If you have surmounting bills then try and put them all together as by means of debt consolidation so you can distinguish what you are dealing with.
No matter what we do it is very important we do something. We may feel that we have neither the time nor energy but trust me it is going to be worth it in the end.
Filed under Debt Free by on May 17th, 2010. Comment. 
The average British credit card holder is in over £2000 of debt. We spent years buying what we wanted when we wanted it but it’s clear from the recent slump in retail sales that the time has come to tighten our purse strings and rein in our spending. Here are a few tips on how to save your money and make the most of what you already have in the recession.
Mortgage: The mortgage is the most expensive outgoing for a lot of people. Your home is the most important thing you own, and definitely something that it is worth taking out a loan for. But that doesn’t mean that it’s an inevitable burden we all have to bear. Shop around a bit and make sure your deal really is the best one for your situation. There are thousands of alternatives out there, you just have to make sure you’re getting the most out of your options. Overpayments are not a bad thing – if you find yourself with a bit of extra cash to spare, don’t keep it aside to fritter away on things you don’t need, make extra payments on your mortgage whenever you can and you could save thousands on interest in the long term.
Credit cards: Resist. Try not to spend money you don’t have, if you can’t afford to pay it off that month, don’t buy it. Try to pay off any debt you owe as soon as possible (don’t just pay the minimum each month if you could afford more) and if you don’t think you can resist spending more on your cards again, cut them up. Make sure you don’t go beyond your means.
Car: Owning a car is a really expensive business. It’s not just the cost of the car itself but road tax, maintenance, insurance, servicing, MOT… The list goes on and on. Think carefully about whether or not you really need a car. If you can’t live without one it might be worth considering a car contract hire agreement instead of buying one outright. You pay for the car in manageable monthly instalments and often they will throw in other additional extras like road tax or servicing costs as well. You just need to shop around for the best deal. And the best thing is that often the more desirable car you choose with contract hire the better deals you can get – you could find yourself with a car you would never have been able to afford to buy outright, even in better times!
Sell sell sell!: If you have clutter and unused things around your house, don’t just turn a blind eye to them or dump them off at your local charity shop. If you’ve got a cupboard full of clothes you don’t wear or gadgets you thought would be useful but never used, there will be someone out there who will want them. Ebay is brilliant, it’s quick and easy and once you get a bit of practise at advertising on there you could find yourself making a nice little extra bit of cash out of your old junk. Give it a go – you’ll never know unless you try!
Filed under Articles by on Apr 3rd, 2009. Comment.
