Thursday, 22 March 2007

Why Debt Consolidation May NOT Be Your Best Move

It sounds fantastic doesn't it ? Get all those creditors off your back,deal with one friendly company and lower your monthly payments. What could possibly be wrong with that ? Well, dependant on your circumstances and the terms of the debt consolidation, A LOT !

Often the way a debt consolidation company lowers your monthly payments isto give you a loan over a longer period of time. So you might get 10 yearsto pay off your debts. Your monthly payments are lower but over the termof the loan you will actually end up paying MORE. On top of this, the debt consolidation company charges a fee. That's fair enough, as they are doing some work for you, but you could do the same YOURSELF for free.

Firstly, contact each of your creditors. Explain the situation and see if you can negotiate better terms. Remember, these people want to get theirmoney and they feel that they are not going to get it, then getting it overa longer period or getting slightly less, but being sure to get it, is a good move for them. Once you've got the best terms you can, pay off your higher interest debt first.

If you have any debt with a very high interest rate, considertaking a lower rate loan out to pay off the higher interest debt. Justmake sure to find out whether there are any penalties to paying off thedebt early or in a lump sum. This is effectively just swapping oneinterest rate for another and if you are organised about it you cansignificantly lower your monthly payments.

Check out loans rates at : http://www.uswitch.com/Loans/Index.aspx

Credit cards usually charge a high rate of interest. If you have credit card debt, then look to make a balance transfer onto a card which will allow you to pay 0% interest for a period (typically 6 months). This way you can pay the debt off faster. Before the end of the 0% period comes up,transfer again and make sure that you are concentrating on paying this debt off first (unless you have other higher interest debt). You don't want to transfer too many times. Make sure than when you transfer you close your account and instruct the company to mark "closed at the customer's request"on your account, to keep your credit record clean.

Thursday, 15 March 2007

Debt Consolidation 101

You are going to scream at me - "I'm trying to SAVE money, not SPEND it !!", I know. Sometimes though it can you more NOT to buy something than to actually buy it.

Debt Consolidation 101 is one of those things. For less than a tenner you can have a virtual personal tutor to guide you out of debt and into control of your life.

I'll be posting tips, ideas and tutorials in the very near future, but if you are serious about turning your life around you should consider getting to Amazon and getting this guide TODAY.



Synopsis (from Amazon) :
This Program will teach you how to start managing your own debt through understanding your debt. This program will also teach you about your spending habits. You will learn how to know what fees you are being charged and how to cut these fees and lower you total debt. You will learn about your interest rates, late fees, over credit limit fees, transfer fees and how you can lower these fees and save yourself money. Work Sheets are provided along with directions on how to use these Work Sheets. You will begin by listing your individual credit card information and your retail store account information to learn your debt situation. YOU WILL LEARN TO BECOME IN CONTROL OF YOUR CREDIT - NOT YOUR CREDIT CONTROLLING YOU.

Monday, 12 March 2007

Exploding The Myth

Are you in debt ?
Do you know someone who is in debt ?

1 in 4 adults with current accounts in the UK are now permanently overdrawn. Combined consumer debt in the UK has now climbed above £1 trillion.

No wonder that debt consolidation companies are doing such raging business !

With offers of :
- REDUCE YOUR DEBT
- WRITE-OFF YOUR DEBT
- LOWER REPAYMENTS
...etc.

They seem to offer the ideal solution. An escape from the pressures and stress of debt to the freedom of having savings.

but, BE WARNED !

Not all debt consolidation companies are created equal and debt consolidation itself may NOT be the right solution for you.

Through this blogg we will explore the myths and the truths of debt consolidation, examine the good, the bad and the plain ugly of the debt consolidation companies. I will show you money-saving ideas, alternatives to debt consolidation and how you can earn more rather than borrow more.

If you have specific questions or need more information at any time, you can email me directly on : free.your.future@talktalk.net