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 by late 2011 despite
the 'credit crunch', personal debt was approaching £1.5 trillion.
UK average household debt is approximately £8,000 - excluding
mortgages, and around £55,000 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.
 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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