What Is Debt Management?

Debt is a tricky subject; we are all probably in debt in some degree or another and have at least one creditor we have to make regular payments to. This, it seems, is the norm for most people in today’s society, however, even though it is a popular situation to be in many people feel uncomfortable when talking about money issues.

When reading through forums and blog posts about money issues or debt we have come across many of you that do not like talking about your money worries with financial institutions let alone listing all you owe when applying for financial help of some sort or another.

We have all been in the situation where a bank (for example) will ask us to list what we owe and to whom and that is for many the most uncomfortable part of applying for financial help, be it short term or long term.

We have discover a new product on the market that means you can apply for debt management help completely online, no discussing the ins and outs of your private money affairs with anyone , the process is completely online and therefore private to you without the uncomfortable discussions.

The process of applying to Debt Lines Debt Management Service is really straight forward, it takes no time at all and you will be on your way to a hassle free life in no time. A debt management solution means that Debt Line will deal with all your creditors for you and create a situation where you pay them back in one easy monthly payment.

They take a small fee from the monthly payments but that is for the management of your finances, we don’t often endorse a product or service similar to Debt Line because they can be hidden extras but we have read reviews and seen how fair the process is and we are particularly impressed with the fact that the whole process is online and therefore easy and stress free.

In times of money worries and troubles we often forget to save money which, collectively, can ease the pressure considerably and often result in having to take drastic action. Looking at ways in which you can save money may result in you not having to take action at all, here are our ten tips to consider when feeling the pinch:

1.       Cut the costs of your fuel bills

We do hear the horror stories about doorstep salesmen selling us cheap fuel that isn’t really any cheaper and is often more expensive than our existing providers. However, this can be a very good way of saving money of you choose the right provider, at the right time, and make sure you read the small print. Some companies offer savings in the short term but you can be worse off at a later date. The Utility providers are very competitive so you should be able to find the right deal to save you money.

2.       Pay as You Go Mobile

There are some unbelievable deals at the moment in the PAYG market, the big players know they have got the pay monthly customer for the duration of their contract but PAYG customers can change at a whim, even being able to keep their phone numbers. If you are paying over £30 per month for your phone consider where you need all those minutes, text and data, PAYG sim cards (if you have a phone already) can provide substantial savings and also sim only deals, that are contractual but don’t include the cost of the phone.

3.       Insurance

Insurance such as house and car insurance is taken for granted and in fact many people stay with the same provider out of habit and convenience, do we all want to provide proof of our no claims evidence every time we change, but it can be another substantial saving. The insurance market, for all types of insurance, is highly competitive, shop around do your homework, you will be surprised at the deals you can get and therefore the monthly savings you will benefit from.

4.       Cancel that gym membership

We would, of course, never tell you to not exercise but there is a high number of us, you know who you are, who regularly provide the local (and national) gyms with free money every year. The thought ‘I must start back at the gym soon’ is costing a lot of people about £600 per year. Cancel the gym membership, if you feel like doing some exercise either go running or pay as you go – if you find you are going more regularly, sign up again.

5.       Pack up smoking

I know you don’t want to hear it but the price of smoking is through the roof now, with 10 cigarettes being about £5, you could be paying up to £70 a week for a moderate smoking habit. If you can pack it in, cut down, there are many cigarettes smoked in the day that are unnecessary.

6.       Sales and offers

This one won’t be news to anyone but it is important, the buying power of the big supermarkets and shops means that you can get some great deals if you shop about. Purchase the buy one get one free offers, especially from the freezer section; this can be a great way of saving money or making the shopping budget stretch further. Clothes and goods can always be found cheaper online, with free shipping, again you can make considerable savings.

7.       Benefits

If you are entitled to benefits, or you think you are, make sure you claim them, it is often the case that people, when times are good, don’t claim benefits and tax credits and therefore they are out of the habit when times become tight. Contact your local authority or the CAB to find out more about localised benefits and check that you are claiming the right about of tax credits.

8.       Mortgage

The mortgage is one of the most expensive outgoing, with low interest rates set to stick around for a while; it is worth considering your options. Many people have been with their bank for ages, including their mortgage, and haven’t considered shopping around. You don’t have to be with the bank of your choice and have the mortgage with them to get a good deal. Shop around, consult independent financial advisors and make sure you have the best deal for you.

9.       Clear credit card debt

Hard as it is, clearing your credit card can save hundreds of pounds every year, the interest on credit cards are often very high and this can mean you are paying the balance off for a lot longer than you wanted too. Shop around for balance transfers, and obviously the best option is to clear the balance as soon as you can and try not to use it when times are difficult (although we appreciate that is probably the time it is most used).

10.   Cable / Sky TV

Are you paying over the odds for the TV you watch? Is it time to consider cutting some of the premium services you pay for? Come to terms with the fact that you never watch movies on the movie channels or the kids not letting you watch the sports? You could save £30-£40 per month by doing this so certainly consider it as a part of saving money.

It can be a very stressful time being in debt sometimes that means that we all make decisions that can either be perhaps not the best at the time or in hindsight created more debt in the long term. There are certainly some things you should look out for or at least be aware of when making decisions about your debt situation.

We have set out below some guidance when dealing with debt problems:

Is borrowing more money going to help?

The answer to this is sometimes yes, for example consolidating your credit cards into one loan to get a more favourable rate, but in general terms this needs to be considered carefully especially when looking to borrow more money to ease your debt problems. Secured loans, when in a ‘debt panic’, can make matters worse especially when they are secured on your home, before borrowing more money always seek advice, make sure it is the right thing to do.

Talk it Through

It is important you get the right support, debt can be one of the most stressful problems to have, and if you don’t talk people can’t help and support you. As always seek advice, most debt problems have a solution but you can’t get help without opening up.

Don’t Ignore the Issues

It is human nature to try and ignore and block out your debt worries / problems, we all don’t like to face up to harsh realities but it is a false economy, the more you ignore the problem the worse it will get. If you leave it too long potential solutions, that could have been available early on, might not be available to you.  Again seek advice and support, believe or not people to care and there are dedicated people to help with debt issues and the problems that arise around them.

Prioritise your Debt

There will be some debt that is more urgent than others in most cases, you need to pay the essentials first, gas, electric, mortgage if you can. if you can pay some of your other debt on time, pay those that either have a high interest rate / charge rate for being late. It is important to tackle debt one step at a time.

Maximise Your Income:

It is important you are in the best position possible, if you claim benefits or any other entitlements make sure you have applied for and receive all that is due to you. It is often the case that in more affluent times we disregard monies that we are due; when in debt they can be crucial.

Explore all Options:

Can others help you out, do all the adults in your house contribute fairly to the bills? Can you switch you credit cards to others that have a preferable interest rate? Can you talk to your creditors are they approachable? Some offer payment holidays and this can be a life saver in times of trouble.

Money management is by no means an easy feat. More and more often people have found themselves with debts spiralling out of control in every direction. With difficulty in keeping track of all your outgoings, it’s a situation that can progress from bad to worse in no time at all. However, it’s not all bleak. Debt management is a fast growing service that can help take back the reins of your finances.

Being in debt can leave you feeling as if you are in a ‘vicious circle’ way of life. With interest and penalty charges you can often feel as if your debt is building rather than being paid off. The purpose of debt consolidation is to see all your debt in one place, stop them from growing and establish an affordable way to start paying it back without having to borrow any more money.

Consolidating existing loans may seem a scary prospect. But with smaller transfer fees and no interest building, you begin to see the light at the end of the tunnel. Regaining control of your debt means you can start planning for the future. With set timelines for clearing your debt, fixed amounts every month and no penalty charges, you can soon feel like your head is above water again.

There are many different organisation s that offer Debt consolidation, so it is important to understand the services they offer. Read through their plans carefully and make comparisons so you know you have chosen the best strategy for your financial circumstances