If you have heard adverts on the radio and TV for debt management comparison sites or debt companies asking you if you are confused by debt, the way to actually clarify your questions or confusion is to speak to each company you have selected directly.

Prepare a list of questions that will help you identify if they are trust worthy and reputable, how can you be sure you can trust the actual comparison web site itself.

  • Who is doing the homework on the debt management companies being compared and how often is the information updated?

Lewis Alexander was approached by a service claiming to be a debt management company comparison website for people confused by debt, they offered us the opportunity to pay them to be listed on their site, we asked them why we should pay to be compared for the consumers best deal, they could not answer our question so we did not advertise with them.

The lesson we can learn from the likes of Direct Line Insurance is that they cannot be found on comparison websites. This is a very large company owned by The Royal Bank of Scotland Group, why would they not be on comparison websites if they were so beneficial to them or their customers?

The only way we could see a debt management comparison website working was if it listed every debt management plan available in the country to a consumer at the time of the consumer search, without a total comparison of all debt plans available, how would the consumer know which company offered the best deal?

  • They would only be aware of the best deal amongst the companies advertising on the debt comparison site. This is NOT a total comparison!

You should be very careful when taking information and advice on something as important as your personal finances.  A company that specialises in comparing companies is doing just that, you should take financial advice off of a company who specialises in giving financial advice and clearing consumer debt, not just one that tries to compare companies that actually do just that.

If you are confused by debt problems and solutions available to clear debts, you can call our free from a landline debt helpline 24 hours a day in absolute confidence using 0800  018 6868.

  • Our trained advisors are waiting for your call!
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Improve Credit Score without Money in the Bank

On July 4, 2010, in News, by Lewis Alexander

  • Did you know it was possible to improve your credit score without actually having much funds available in your personal bank account?
  • It is even possible to obtain a good credit score after having a bad credit rating, when living in and out of a personal overdraft!

To increase your credit score or improve your credit rating you need to pay any credit account you have on time and make sure your payments are for the correct amount. It does not matter how much money you have in your bank account. It is as simple as that, if you are struggling with credit accounts get rid of them where possible.

 Start a fresh and gain control on a monthly or weekly basis!

free credit report UK from ExperianCar finance and all other types of credit agreements are listed on your credit report so it is important too keep up with all agreements not just the ones that are important to you.

Most people suffer from a bad credit score due to not being able to keep up with regular monthly repayments, some months they encounter extra unexpected living costs, such as motor breakdowns and domestic appliance problems.

  • These tend to need immediate attention which costs and these costs are what tend to set the individual back.

When payments are then missed for credit accounts, the credit companies are duty bound to update the credit reference agencies monthly such as Experian and Equifax.  These credit reference agencies keep your credit file up to date so that when you apply for any borrowings or credit, the lender you are applying too has the right with your permission to search your credit file for any information they may require to either approve, or decline your application.

  • When an application for credit is refused or turned down, the lender is under no obligation to tell you why.  This can often offend people but the policy not to disclose the reason for decline is normal practice within the credit industry.

If you have never seen a copy of your credit report, it can at first take time to understand.  Once you have seen it you will feel more comfortable looking at it next time you need to, and so on.  It is important to keep a check on your credit report as this can inform you of any searches that have been made in your name without your awareness.

Credit Expert from Experian is the most well know of the credit reference agencies that allow you to view your credit report online.  They offer a free 30 day trial.  This is a trading name or brand of a company called Experian who advertise on Television, you may have seen the credit expert TV adverts.

Lenders use different parts of your credit report to assess if they are able to lend to you, this differs from lender to lender.  If you make multiple applications for credit and get refused within a short period of time, say one day to a week or even within one month, you can reduce your credit score that way, so be careful when applying for credit.

Prospective lenders do not like to see many refused applications for credit within your file over a short period of time, it can show that you are desperate to obtain the credit and this can worry a lender.

If you need advice regarding clearing personal debts after suffering a bad credit history, you can call our personal debt helpline 24 hours a day in total confidence using 0800 018 6868.

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Personal Debt, the Banks and UK House Prices

On July 1, 2010, in News, by Lewis Alexander
  • What have the above got in common?

Personal debt has been driven up by our previous government allowing banks to basically over lend, just like the previous government increased the countries own debt level.  It all has to be repaid at some point and now we find the banks are unable to lend against property unless people can provide a deposit, in some cases being up to 35% of the desired property value. Interbank lending reductions are also showing signs of returning.  This means money becomes even shorter in supply generally throughout the entire economy.

If we look at consumer personal debt levels, these have been created via irresponsible lending and irresponsible spending, but not in all cases.

Some people have also consolidated their personal unsecured debts such as credit cards and loans, store cards and catalogues into either a new secured loan against their home or into the existing mortgage by remortgaging the money from available equity in their home.

This is very risky when you think that in the very near future, interest rates will have to start going up again and that will mean that people again will feel the squeeze in their monthly budget as their mortgage or home repayment costs go up.  Some will be able to manage the increase and some will not, these are the people that really should be looking in their most trusted crystal ball at the moment.

When lending by banks against property reduces it can also mean that house prices in turn may fall, this is because people have to be more realistic about the value of their house for sale purposes if they really wish to move quickly, banks will only lend money against a property for what it is worth, not for what a vendor feels they have spent on it which actually becomes perceived added value.  The perception of increased value is not always there in the eyes of the banks at the point of lending!

International investment from outside the UK from people moving here or buying second homes here, coupled with the fact that demand in the UK for new affordable housing is outstripping supply and has done for the past couple of decades, means that this supply and demand issue for new affordable housing could be the only saving grace to our UK housing market, if the international money which usually goes directly into London stops due to global issues and the banks don’t inter lend, then the only people buying houses will be first time buyers with very large deposits, therefore a reduction in most house prices would follow.

If you have unsecured personal debts and a mortgage to pay each month you should make sure that the credit repayments are not eating up the majority of your income, if they are it is time to seek some personal debt advice.  If you think things could get out of control for you financially if you suffered a change in circumstance, then you should be planning ahead just in case.

When you repay credit cards and loans, sometimes you are servicing the debt by only paying interest that is accruing, this is as good as renting your debt off of your creditor, you must get into a debt reduction plan as soon as possible if this is the case.

  • Taking the first step to sorting a financial problem is usually the hardest, as with most unfamiliar things we do in life.

If you need professional advice regarding your outstanding personal finances then call our personal debt helpline today in confidence using 0800 018 6868, lines are open 24 hours and your call is free.

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