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Debt Advice for the 'credit crunch'

Get your finances back on track - Debt Advice

UK Debt Rises and Rises

Over the past 20 years outstanding debt has risen dramatically. Total UK personal debt had passed the £1 trillion mark in July 2004 and reached over £1.1 trillion in the middle of 2005. By April 2007 it was in excess of £1.3 trillion and continued to grow in the first part of 2008 despite fears of recession.

With recent events in the financial and banking markets making credit harder to find for everyone from banks to the ordinary person in the street, lending has reduced dramatically in the latter part of 2008.

UK average household debt is approximately £7,520 - excluding mortgages, and £43,207 including mortgages. This debt includes more than £56 billion on credit cards - around £1,140 per card-holder. More than one in ten have problems meeting their credit card debt repayments.

About Debt Consolidation Loans

Over Extended Credit

Unlike our grandparents' generation who were generally reluctant to borrow, buying today instead of having to put it off until tomorrow has become an accepted feature of our society. However, it is easy to become financially over-extended with credit cards, mortgages, car loans, overdrafts, unexpected bills and changes in personal circumstances - illness, birth of a child, an accident, business failure or unemployment.

A recent survey revealed it only takes a 10 % drop in income to change what was a manageable credit commitment into a debt problem.

The key to all debt problems is prompt action, act now before things get worse

Enquire now - Call our loan helpline free on 0800 043 7474

Signs that you may need debt help

Mortgage arrears, Credit card debts or utility bill 'final demands'
Debt collectors or bailiffs calling
Missed loan repayments
County Court judgements or defaults
Creditors phoning
Afraid to open the post or answer the phone

Prioritising your debts is the first step.

Priority debts

Priority debts are those that require the most urgent attention - non payment can result in you losing your home or essential services :
mortgage, secured loans, rent arrears, heating bills, telephone and car (if essential for work), court fines, income tax, council tax, maintenance payments.

Mortgage Arrears - not making your mortgage payments puts your home at risk. The mortgage provider will contact you, usually by phone and then in writing, to warn you of the consequences of non payment. They will then refer the case to lawyers and eventually issue a court summons. The longer you leave it the more the arrears and the problem builds. If you decide to consolidate the arrears can be incorporated into the loan and make your monthly repayments more affordable.

Council Tax Arrears - if you don't pay your council tax, the council will apply for a 'liability order' in the courts. They can then use bailiffs to get the money from you. This can be by removing items of value from you, or by deducting money from your wages or benefits.
If you are on a low income or unemployed you may be entitled to council tax benefit - check with your local Benefits Agency. The Child Support Agency can also authorise your employer to make direct deductions from your wages, or apply for a liability order.

If you don't act quickly some creditors are able by law to:

Repossess your home or business premises, or evict you from rental properties
Cut off electricity, gas or water supplies to your home or business
Instruct bailiffs to remove goods, vehicles or equipment from your home or business
Ask the magistrates to sentence you to prison - the courts are unlikely to sentence you to a prison term if you have not paid because you don't have enough money. Imprisonment can result from non payment of court fines, council tax or maintenance. You cannot be sent to prison without a hearing.

County Court Judgements

Court action can lead to a CCJ being registered against you. This will go on file and subsequently affect your credit rating. Bailiffs can be used to enforce payment of CCJs.

Non-priority debts

Non-priority debts include:
bank overdrafts, credit-card arrears, catalogue debt, store cards, non-essential hire-purchase.

Work out your budget

Calculate how much money is available to you each month - all income from you and your spouse, any contributions from any adult living with you, benefits, overtime ( if regular)

Now list your monthly spending.
The figures become much clearer if you group them under different headings -
Finance : mortgage payments, secured loans,
Household expenses :council tax, electricity, gas, water rates, TV license
Living expenses : food, toiletries, cleaning materials, etc
Clothing
Travelling expenses : car, train fares etc
Children :school dinners, clubs etc

If your monthly outgoings exceed your monthly income you need to act as soon as possible to regain balance of your finances. Basically, you need to either decrease your spending or increase your earnings.

Money saving tips | Earn Money working From Home | Start Your own Business

The essential bills need to be your priority.

Refinancing by incorporating all your debts into one loan - a Debt Consolidation Loan - can reduce your monthly payments and enable you to take control of your finances. Mortgage or loan arrears can then be cleared when you consolidate with more affordable monthly payments - clearing unpaid debts, avoiding court action and preserving your credit status.
You need to be sure that the interest rate and the repayment term that you agree to are manageable.

Reduce monthly payments

You can significantly reduce your monthly payments with a Debt Consolidation Loan, sometimes by up to half. Making one monthly payment can be much more convenient and easier to manage than making multiple payments.
Our experienced and friendly brokers will help you to combine and repay all your existing debts with one single loan, usually at a more competitive interest rate - reducing your monthly repayments and putting you back on track for your future financial freedom.

Consolidation loan phone help Loansite is one of the longest established online brokers in the UK - we've helped thousands of people find loans and remortgages so why not let our lenders do the shopping around for you?

Loansite is a Limited company based in Cardiff, UK.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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