Summary

Some practical advice on how to tackle debt problems.

Credit Problems? Tackle them head on.

Hate opening the post? Dread receiving the bill and Bank Statements?

Sounds like your finances are becoming a problem.

The ostrich solution never works when it comes to debts - they just dont go away that easily. Take a tip - theres never a better time like the present to tackle a debt problem - as soon as piling bills give you a knotted feeling in your stomach, face up to the problem.

Heres some practical advice.

(mortgage deals)

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Make savings on your credit card bills.

Savings should be easy to come by. You just need to make cold calculating use of the special deals that many of the credit cards are offering.

Savings can be found by moving your balances to credit cards with cheap secured loans lower interest rates and special introductory offers. For example, take advantage of the 0% deals on balance transfers such as that offered by Mint - theyll give you 10 months interest free but theres a 2% balance transfer charge. Marks and Spencer have the best transfer free 0% introductory offer. Their 0% deal lasts 6 months.

And ensure the interest you pay on any new purchases is reasonable - cheap mortgages better still, since youre now cutting back hard, dont use your card at all! However, if its not practical to avoid using you card, then try HSBC. They offer 0% for 9 months on balance transfers and new purchase - but they also levy a 2% balance transfer charge.

The credit card companies may call you a "rate tart" and hate you for switching around but be hard nosed and regularly move your balances between cards to take full advantage of their introductory offers. Then, when youre a month off the end of a deal, look for a new card and get the balance transferred.

Reduce your monthly expenditure with a Debt Consolidation Loan.

The purpose of a Debt Consolidation Loans is to reduce your monthly outgoings. You take all your existing loans and credit card balances and roll them together into one loan that gives you a single and lower monthly payment. The lower repayment is realised by reducing the overall rate of interest you pay and spreading the loan repayments over a longer period of time. (Cheap mortgage)

But as with everything, there are snags to watch out for. After youve rolled up all your existing loans into the Debt Consolidation Loan, dont start reusing the old credit lines car insurance quotations youve just paid off. If you do, youll simply end up digging yourself into a deeper hole and make your position much worse!

And theres another aspect you might be forced to consider. If youre a homeowner looking for a fairly big consolidation loan, the lender may want your debt secured against your home. If this happens, think carefully before signing. Remember, if you fail to sustain the agreed repayments, the lender can apply to the courts and force you to sell your house. That would certainly be bad news!

Seek help.
Theres lots of help available to assist people resolve their debt problem. A motor insurance quotes good starting point is the Citizens Advice Bureau. Theyre local with 3,200 branches throughout the UK and are there to help.

Then theres the Consumer Credit Counselling Service. Through its free national telephone service and eight centres, the Service is able to help people with debt problems throughout the UK. Their specialist skills have already helped thousands of people by providing counselling on personal budgeting, advice on the prudent use of credit and, where appropriate, managing plans to repay debts. Youll find their web site at www.cccs.co.uk or phone them on 0800 138 1111. (loan quotations)

Theres also the National Debtline. This is a confidential, free and totally independent source of debt advice. Visit their web site at www.nationaldebtline.co.uk . On their site youll find a free information pack with a personal budget section, debt advice and free fact sheets. Alternatively, phone them on 0808 808 4000.

Debt Management Plans.
If your debts exceed £5,000 and are spread across three or more creditors, a debt management plan might be for you. But youll need to be able to allocate at least £100 per month to help repay the debts.

Basically under a Debt Management Plan, you agree to pay off your creditors motor insurance with a single fixed amount each month. A debt management company then receives this sum and allocates the money between your creditors. In return, your creditors have to agree to freeze the sum you owe so no more interest or charges pile up. remortgages

Some debt management companies charge a fee for their service but others, including the National Debtline and Consumer Credit Counselling Service, are paid by your creditors.

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