According to the Citizen’s Advice Bureau there is an disquieting amount of us seeking their assistance regarding Debt Management.
Their statistics reveal that each day England and Wales generate an additional 9,500 cases which find their way to them. The CAB also tells us there has been an increase of those seeking help with housing and benefit problems. Approximately 8,200 per day need assistance urgently.
This data certainly reflects the UK’s economy and how it is still early days as far as things recovering.
We are coming out of a recession but despite this, many of us have to face the cold light of day. It is apparent many of us are still struggling and not able to cope with the ever increasing pressure on our finances and household budget.
Fuel bills are increasing, but wages are not increasing sufficiently and it’s that time of year again for the council tax, rent and/or mortgages to go up.
And don’t forget we have had quite a chilly winter, the coldest for a few years. Those winter bills need to be paid and something tells us they are not going to be cheap!
The worry is, whilst there are better days ahead, we don’t fall into the temptation to borrow even more to tide us over. Credit Card Debt, remortgaging the family home or getting a further loan from the bank are all ways that will defer those better days to come.
We may think this is the best way as far as having a Debt Management plan is concerned and in a few cases it could be an option. But before we plunge into additional debt we could want to think through the alternatives.
Credit cards are not all bad. Look out for credit card transfers that have a 0% interest rate for a fixed time. Try to budget accordingly so you pay it off before interest is charged. This will negate the need to pour our valued funds into paying off interest and let us to put that money to better use.
It can take much focus, research and budgeting but it is worth all the effort. If we calculate the gains it soon becomes noticeable how we can improve our debt situation.
Take a credit card that has 19.95% APR and say we have a £1000 on it. Well that is £199.50 interest we are obligated to pay on top of that debt, or £16.63 per month.
Now if we were to transfer that Credit Card Debt to a card that has a 0% interest rate for six months then we save £99.95. That has to be worth bearing in mind.
The other way we may free up disposable income is by Debt Consolidation. By lessening our monthly outgoings and not having to agonize about many creditors we become more able to get on with our finances. Debt Consolidation also diminishes the risk of having to take on more debt.
These are some ways we can improve our own personal situation. It is all very well the claim that things are getting stronger if we don’t play our part and take responsibility for our own finances.
If we do then we can profit from coming out of the recession and not just be observers of it.
Debt Management News