Loans Are Not Just For Christmas Surviving The Holiday Debt Hangover

Loans Are Not Just For Christmas Surviving The Holiday Debt Hangover



Loans Are Not Just For Christmas .​
Surviving the​ Holiday Debt Hangover.
Christmas is​ coming - a​ time for decorations,​ songs,​ over-eating,​ gift giving,​ visiting the​ family,​ consumer spending and the​ increasing of​ personal debts .​
Bah humbug.
While most people see Christmas as​ a​ joyful period there are many who see it​ as​ a​ time of​ financial worry as​ they cannot afford to​ buy presents for everyone .​
For these people it​ is​ often the​ doorstep lenders who will be getting fatter rather than them and their family .​
The temptation is​ to​ simply put the​ expenses on​ the​ credit card or​ take out a​ loan to​ be paid back on​ the​ never-never .​
Unfortunately this can lead to​ disastrous results in​ the​ long-term,​ as​ the​ recent increase in​ the​ number of​ repossession order applications are testimony.
There are a​ few simple rules can help to​ prevent a​ post festive period financial hangover though.
Firstly,​ don’t ignore the​ problem .​
The longer you​ leave a​ debt problem,​ the​ worse it​ will become .​
If things seem desperate then contacting a​ free organisation such as​ National Debtline (0808 808 4000) can help by giving debt advice over the​ phone,​ or​ by providing booklets and fact sheets,​ as​ well as​ helping to​ set up personalised debt management plans .​
Next,​ maximise incomings and minimise outgoing expenditures .​
Look out for anywhere costs can be reduced .​
Online retailers don’t have to​ pay for expensive premises,​ and so buying presents online rather than in​ the​ shops is​ often a​ great money saver .​
Be alert for shop sales and make the​ most of​ them .​
If you​ already have debts,​ then you​ need to​ be wary of​ borrowing more money without some serious consideration and qualified professional independent financial advice .​
Taking out a​ low rate secured loan to​ cover previously unsecured debt may seem like a​ sensible idea,​ however,​ should you​ fail to​ meet the​ payments you​ could lose your house .​
If you​ have unsecured loans,​ your home may not be safe either .​
Debt counselling charities have recently become increasingly alarmed regarding a​ growing trend by some of​ the​ high street lenders to​ issue charging orders on​ borrowers’ homes in​ order to​ recover bad debts .​
This means that by going through the​ courts,​ the​ lender can change an​ unsecured loan agreement converting the​ debt to​ be secured on​ the​ borrower’s house,​ whilst still charging unsecured interest rates .​
a​ consolidation loan may seem sensible; however this will mean borrowing more money,​ over a​ longer period this will mean more interest to​ pay in​ the​ long run .​
If you​ decide to​ take out a​ loan,​ then you​ need to​ ensure that you​ are getting the​ best rate that is​ available .​
The big banks like Barclays ( www.barclays.co.uk/loans-index/ ) have online facilities showing their current rates ,​ and other online finance companies such as​ Moneynet ( www.moneynet.co.uk/loans/index.shtml ) provide free facilities to​ compare rates for hundreds of​ secured loans,​ unsecured loans and even adverse loans.
Never use a​ doorstep lender no matter how desperate things seem .​
Radio 4's Money Box recently highlighted the​ plight of​ people in​ Southampton where the​ typical doorstep lender’s APR was a​ massive 177% .​
For people on​ low incomes trying to​ regain control of​ their finances,​ this will lead to​ further problems and cause existing debt to​ spiral out of​ all control .​
Recent initiatives for people who have had problems getting affordable credit,​ known as​ Community Development Finance Institutions (CDFIs),​ have started springing up around the​ country .​
These are funded by a​ collaboration of​ public and private money including some of​ the​ major banks,​ and specialise in​ providing personal adverse loans and small business loans to​ people who have previously been turned down by the​ banks .​
CDFIs usually charge an​ annual interest rate of​ up 24%,​ which is​ higher than many standard non-adverse high street loans due to​ the​ increased levels of​ risk and additional advice involved with this kind of​ lending but it​ is​ also much lower than the​ unregulated alternatives.
When you​ look at​ paying off existing debts,​ you​ need to​ decide which are the​ most important and deal with your priority debts first .​
Ensure mortgage and rent bills are covered first,​ next pay off essential utility bills and council tax,​ before trying to​ pay off any unsecured loans .​
As well as​ reducing any monetary outgoings,​ it​ is​ also important to​ ensure that you​ are getting all the​ incoming money that you​ are due .​
Checking with the​ local Citizens Advice can be useful for help on​ debt,​ benefit,​ housing,​ legal,​ discrimination,​ employment,​ immigration and consumer issues .​
They will be able to​ advise you​ on​ most areas of​ concern,​ including whether there are any government payments to​ which you​ could be entitled.
Debt problems can seem insurmountable at​ the​ best of​ times,​ but over the​ Christmas period it​ can become completely overwhelming .​
Start by maximising your incomings,​ minimising your outgoings,​ and careful budgeting and purchasing .​
Ensure you​ are getting the​ best loan rates through free online information comparison at​ sites like Moneynet,​ and speak to​ free independent advice services like National Debtline and Citizens Advice; it​ is​ possible to​ retake control of​ your finances and have a​ happy Christmas.
Disclaimer:
All information contained in​ this article,​ is​ for general information purposes only and should not be construed as​ advice under the​ Financial Services Act 1986 .​
You are strongly advised to​ take appropriate professional and legal advice before entering into any binding contracts.
Useful resources:
Moneynet loan comparisons ( www.moneynet.co.uk/loans/index.shtml )
Barclays loans ( www.barclays.co.uk/loans-index/ )




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