Paying Minimum Payments on Credit Card Debts Equals Renting Debt

On December 6, 2012, in News, by Lewis Alexander
  • free credit report UK from ExperianAre you struggling with credit card debts and loan repayments?
  • Have you found that you are struggling to find the money to meet only the minimum payments for credit card debts?
  • Is the balance on your credit card hovering or increasing even though you are making minimum payments?

Credit card companies make more money when you fail to repay on time.  These companies have designed the cards they offer to compound with interest over time so the balance will not reduce if you are only making the required minimum repayments to these credit cards on a monthly basis.

When we speak to prospective clients at Lewis Alexander Financial Management, we find that most people think that because they are meeting the minimum payments on credit cards that they are not actually in debt!

  • This is a very common misconception regarding how credit cards work and to actually reduce credit card balances you must pay more than the minimum required.

When people say they are not in debt, they are advised that the meaning of debt is something owed such as money, goods or services. It is an obligation or liability to pay or render something to someone else. The minute you borrow money you are technically in financial debt.

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The higher your credit card balances become the harder it usually is to keep up with the repayments, this is because they are compounding with interest at such a rate that you cannot start to pay down anything more than the minimum because the repayments are eating too much of your monthly income.  This is the pattern the credit card companies make more money from and if everyone repaid their credit card balances in full every month the credit card companies would make little or no money at all.

All you are doing by paying the monthly minimum payments on credit card debts is actually renting the debt from the credit card company!

This is the cycle of debt that people find themselves in and when they then incur a further change in personal circumstance it tends to create a personal financial problem.

Lewis Alexander has helped many people over the last 10 years to start to and finally clear personal credit card debts and personal loan commitments.  If you do not take action and solve your financial problems they will also compound and increase in severity.

The sooner an individual seeks the financial help or financial advice required and commits to a plan of action to reduce the debt, the better it is for their financial future.  People who do not take action immediately tend to be unable to explore personal debt solutions that could have been initially available to them.

If you are struggling to manage credit card or loan repayments and need help to clear the debts and start reducing what is owed, please contact our personal debt helpline today in absolute confidence using

  • 0800 018 6868
  • Lines are open 24 hours / 7 days
  • Calls are usually FREE from UK land lines
  • Calls from mobiles may be less expensive if you dial 0161 872 3383
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  • free credit report UK from ExperianAre you trying to escape the stress and worry of personal debt problems?
  • There has never been so many ways to get hold of financial information online about all sorts of things.  Advice is not a problem to get hold of, getting hold of reliable information can be though.
  • At Lewis Alexander Financial Management we have the kind of financial help and advice you want …reliable and accurate!

Most people struggling with personal debt problems say that the financial problems they have start to control their lives and in turn can keep them awake at night worrying about future financial security.

If you live in England, N Ireland, Scotland or Wales (UK) and are finding it difficult to successfully clear your debts, then take five minutes to read this blog post and then we hope you will be in a better position to make informed choices about your financial future.

We are focused on helping UK residents solve debt problems by ensuring we employ the best practices available to form a reliable debt reduction solution that works for our clients.

Debt Management Online

A debt management plan may take many equally effective forms and are built and designed on an individual basis for each and every one of our clients taking their own set of circumstances into account. They are informal and are not legally binding.

Debt Consolidation Loans

Taking all your debts and putting them together and making one, monthly repayment can be an effective way in it’s own right of clearing problem debts for many people. Many people in the UK have used this method of debt consolidation help and it works well for most of them. It is not always the best answer for everyone however. Let a debt advisor at Lewis Alexander help you decide what is the best debt help solution or service for you.

If you’ve been refused a loan, there can be alternative solutions!

There are multitude of possible reasons why you may have been turned down for a loan in the past. We can help you find out what those reasons are and then help you understand if you could actually get or qualify for a personal loan.

Individual Voluntary Arrangements

Individual Voluntary Arrangements are formal agreements that structure a repayment program over a fixed term with the end result of your final unpaid debts being written off by your creditors. Because of it’s formal nature however, an IVA will be recorded on your credit history file. All interest and charges are frozen and all correspondence from creditors is stopped.

Get more advice about other debt related issues and be armed with everything you need to get out of and clear debt. There are solutions available for anyone in debt, whether they have small, short term debts or large, long term debts which have far reaching implications for them, their family and friends.

If you feel that any or all of the above questions apply to you then we can help you without a doubt. You will not be judged and you will not have to worry about your friends or family finding out.

We operate a confidential service so you can be confident of absolute discretion throughout all our dealings.

  • call 0800 018 6868 today,
  • Calls are usually free from a UK land line, mobile call costs may vary.
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In Debt

On July 6, 2011, in News, by Lewis Alexander

Are you struggling in debt and need to find a way out?free credit report UK from Experian

  • No one means or plans to be in personal debt!
  • It’s just one of those things that kind of creeps up on us most certainly after a change in personal circumstance.

By the time you’ve got that new car on the drive, the top of the range kitchen and the flash summer holiday, it’s no surprise that the UK’s average wage of £22k a year simply isn’t enough!

According to latest figures, the average amount of personal debt each person in the UK owes is approximately £15,000. This means that in many cases £15k would be seen as a walk in the park as debt levels of around £30k-£50k are not uncommon.

At the heart of the issue is the fact that it had become generally accepted that it was possible and indeed accepted to ‘live beyond your means’. The fact remains that even slipping into debt for a short period of time can soon spiral out of control with monthly payments creeping well in excess of monthly take home pay!

  • Once you’ve reached this point the focus switches to managing monthly payments rather than reducing the underlying personal debt.

Let’s take Mike and Claire. A young couple with two children a £150k mortgage and combined household income of £35k.  Mike and Claire typify what Nick Clegg refers to as ‘Alarm Clock Britain’.  They take home £2000 a month but with mortgage, household bills and food shopping alone taking £1500 away, it’s not long before clothes for the kids, Pizza Friday and Bob the dog’s pet food account takes up the rest!

So they put the summer holiday on a credit card, spent a bit on the house, bought a new car and before they knew it had racked up £20k in personal unsecured debt.

Easily done, but the net effect is an endless cycle of earning just to make the monthly re-payments.  The spare £500 a month soon becomes insufficient to cover the minimum payments on that £20k and poor old Bob is going a bit hungry!

The easiest and simplest way to reduce your debt is to spend less. This sounds obvious but is easier said than done. Unless you can suddenly find a lump sum to pay debts off, the only way you’re going to decrease the balance is by paying off more than you spend or by marginally increasing your income.

In Mike and Claire’s case reducing their spending is going to be pretty hard as there really isn’t a lot spare but maybe Free view TV instead of popular subscriber options such as Sky or Virgin and other cable TV, shopping around for better utility rates might help?

To increase income they could eBay some of that junk in the loft, see if some overtime is available or maybe try and earn some extra through a small part time job.

  • Alongside these approaches it is also useful to shop around to see if there are lower interest deals, or 0% interest offers that they can benefit from.
  • Credit card companies are fighting for our business, and if you find the deal that is right for you then even 6 months without interest can make a big difference in helping you turn your finances round.
  • It may help to think of this as a part-time job.

As Director of Family Finances you should always be on the lookout for special offers, new deals and trying to coordinate them so you’re always best placed to reduce your family’s debt or increase savings.

By regularly comparing all your credit cards’ interest rates and transferring balances away from the cards with the higher rates can be a great option.  Second, think about simply calling the credit card company who has the higher rate. As credit card companies are under pressure to retain customers you may find that you can get a better deal simply by asking for one, particularly if you can quote a competitor’s deal when you call!

Think of it like the “lowest price guarantee” that most stores offer.  Setting up an automatic payment through your bank is another way of reducing your credit card debt more effectively.

  • Maybe repaying debt instead of buying more shoes is the answer after all?

If none of these techniques are doing the job and you are fed up of being in debt then it may be time to get in touch with Lewis Alexander Financial Management. One of our personal debt specialists may be able to help you reduce your personal debt by understanding your individual circumstances.

  • Call us FREE today from a land line using 0800 018 6868 and you may be able to start your journey to clear debt that is holding you back.
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In Personal Debt and Need Help or Advice

On May 16, 2011, in News, by Lewis Alexander

Are you in debt in the UK and want to find a way out of it?

  • free credit report UK from ExperianAre you In Personal Debt?
  • Do you need help or advice to manage your finances?

The following information is for UK residents in need of debt help or debt advice.

In the UK in recent years, the amount of people who have taken on personal debt and further credit has rocketed! Whilst that fact alone is not the end of the world, the amount of people who are not coping with their personal debts is of a great concern for the government and a lot of other financial bodies.

  • Our goal at Lewis Alexander is to help as many people as possible who are in debt, clear debt for good.
  • Using all the tools we have at our disposal we do our utmost to help every single person that comes to us.

Each person we help is treated as an individual, with respect and confidentiality, focusing on their own set of personal circumstances and then together we devise a debt management plan tailored to their situation. Nothing is imposed … just good honest advice with recommended courses of action at the end of it for you to take up or leave …it’s entirely up to you.

  • Is your life restricted by debt?
  • Would you like to clear those financial restrictions?
  • Would you prefer to enjoy your life without debt?

A debt management plan can help once we have looked at all your debts against your earnings, we can devise an informal repayment plan to ensure your interest and charges are kept to the absolute minimum and help you by negotiating with your creditors directly.

Don’t pay for advice about debt consolidation loans, consolidating all your debt into one easy, affordable monthly repayment through debt management UK or another loan is effective, even if previously refused loans. However, you should be aware that any loan application is subject to your current financial status.

Individual Voluntary Arrangement or IVA, this is a formal agreement between you and your creditors over a fixed term (usually 60 months) after which you are clear of debt as long as you maintain your agreed monthly repayments. You should not receive any further phone calls or letters from your creditors once you enter into an IVA however restrictions do apply especially if you are a homeowner.

With a Trust Deed in Scotland you will find the law in Scotland is slightly different, but in it’s basic form, the Trust Deed is the same as an IVA. The term of a Trust Deed is shorter (usually 36 months) but apart from that, the agreement is very similar.

Personal Debt Help

  • Make the choice today and ensure what you pay towards your debts actually goes towards reducing debt instead of just paying or servicing the interest.

Sometimes we even manage to get the interest and charges frozen with the informal debt management plans we set up for people reducing the time needed to pay off the debt however this can not be guaranteed.

  • Are you confused with the amount of information being directed at you all the time regarding your personal debts?

Call us FREE from a UK land line using 0800 018 6868 and we will help you identify your best solution, you may not even need anything formal to give you the route through to clearing your debts, perhaps just a fresh eye is all that would be needed to show you the way forward, and if you do need formal debt help, we will advise you what would be best suited to your needs.

  • With so many people in the UK struggling from week to week with their debts, wouldn’t you like to be one of the ones who gets them self out of the debt trap?
  • Don’t remain chained to your debts for one day longer than is absolutely necessary, there is an alternative.

Call a Lewis Alexander trained debt advisor today, call free from a land line using 0800 018 6868, all calls are dealt with confidentially.

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Need debt Help

On April 26, 2011, in News, by Lewis Alexander

Need to get help with your personal debts?

free credit report UK from ExperianWith the right financial guidance and debt help you can free up more of your available money to work harder for you.

Are you constantly having to count up what you’ve spent and working out what you can afford to spend because you are not left with much money after all your bills are paid each month?

We offer debt advice to people in this position as well as those who are already struggling with overwhelming debts. We are determined to help as many people out of debt as we possibly can using our years of experience and our skills as debt management consultants.

  • Do you lie in bed at night worrying about your bills?
  • Do you constantly have to work out what you can afford?
  • Are you only managing to pay the minimum payments on credit cards?

These are very common aspects of being in debt.  The first thing to remember is not to panic!

  • Why don’t you charge for your personal debt helpline?

We do not charge for our personal debt helpline or the advice available on it because we believe that advice about debt should be honest and readily available without charge. People need someone to discuss the ways out of debt with then before obtaining the help to achieve that goal.

Find out more about how we operate as debt consultants.

  • What options would I have to help me clear my debts?

We specialise in helping people get out of debt. We do not use quick fixes! We analyse your personal situation and then make recommendations based on our discussions. These recommendations are designed to help you get out of debt!

  • We can build a personal debt management plan for you which will reorganise your finances.
  • We could arrange for a debt consolidation loan to save you interest and charges. (subject to status)
  • We can advise about or help you set up an IVA if you need something more formal to help clear your debts

Are there any groups of people that you cannot help?

We do not generalise when it comes to helping people with debt. We have helped all kinds of people from all walks of life, from single parents to people in the armed forces and even helped people refused loans to clear debts.

Call free from a landline today using 0800 018 6868

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Can I pay off my debts or clear personal debt quickly?

On February 28, 2011, in News, by Lewis Alexander

Can you settle my debts immediately… please?

free credit report UK from ExperianWith increasing numbers of Brits turning to debt management companies for help, the question we encounter most is ‘Please, please, please can you wipe out my debts as soon as possible?’

99% of the time the answer is “No” and at Lewis Alexander we believe that our responsibility is to set our customers on the journey to a stable long-term financial existence.  Therefore, rather than starting with a solution we like to start by understanding the personal circumstances of each of our clients.

By completing a thorough financial healthcheck with any prospective new debt management client, we are then in a much better position to offer debt advice and debt solutions to best help our clients.  Typically, we find that the most common solutions are:

(1) Entering into a long-term or short term debt management plan

  • Where we negotiate with your creditors on your behalf
  • Potentially stop interest accruing on your debt – this is not guaranteed!
  • Agree reduced debt management repayment plans over an agreed period of time

(2) Re-structuring debt payments for our clients

  • Where we discuss with your creditors the current debt repayment amounts, term of loan/debt & the interest rate
  • Agree new terms that are more preferable to you if possible
  • Potentially change the debt solution that you are using

(3) Arranging partial settlements for outstanding debts

  • Where we negotiate with your creditors to encourage them to accept a reduced repayment, by way of one lump sum usually known as a short settlement or settlement in full and final.
  • Ensure that any agreement is acceptable to all parties


(4) Entering into an IVA

  • Whilst some of our competitors consider this to be the ‘first debt solution’ we prefer to use this as a debt solution of last resort.
  • An IVA is a formal agreement where you come to an arrangement with creditors you owe money to, to make reduced repayments towards the total amount of your debt in order to pay off a percentage of what you owe over a set period of time, usually 60 months.

The choice of debt solution depends solely on the individual circumstances of our clients, but each of these options take time to negotiate, agree and formalise. The only true option that leads to immediately sorting out debt as soon as possible, is the 100% (or very near) repayment of all of your debt. Which, if we are being honest may have made you less likely to have called Lewis Alexander to access our expertise in helping ordinary people, like you, who are in debt!

The one thing that we can promise to do instantly, in all cases, is to identify a solution that best suits you.  Should our service not be what you need we will try and refer you to a company or organisation that is better placed to help you.  For many people who are in debt they would ideally like everything sorted using the wave of a magic wand, however, this does not happen but the feeling that their situation is being managed professionally is enough to take away a large percentage of the pressure of being in debt.

We believe that by providing easy access to our advice means that we are better equipped to start working on your personal solution as soon as possible should you qualify for any debt solutions that we can offer.

So, if you find yourself in personal debt and need some help to turn your personal finances around then call us on 0800 018 6868 now.  Whilst we can’t promise instant debt clearance solutions, we do promise to work hard for clients and to look after your best interests.

  • Call us today and see if we can help you to start to relieve some of the stress of being in debt.
  • Our number again is 0800 018 6868.
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