ITV Tonight on reducing monthly payments

On January 28, 2010, in News, by Lewis Alexander
  • Did you see the Tonight programme by ITV about reducing monthly outgoings and repayments?
  • Martin was explaining how to save money by cutting back on items in your household expenditure!

Due to rises in fuel prices and the general cost of living, most people are finding it difficult to manage or reduce monthly payments that they have.

There is a point where some people find they cannot cut back any further.

Without the programmes enthusiasm in your front room, how can you implement the same money saving ideas and stick to them. One thing that was mentioned was the “impulse buy”, items bought out of a want, not a need!

  • Fed up of having no money left at the end of the month after paying all the bills?

There are a great number of ways to save money each month and the following are just a few;

  • Change Electricity or Gas supplier
  • Change Internet provider
  • Change Telephone provider
  • Change or reduce TV subscriptions
  • Change Supermarkets
  • Do not make impulse purchases only buy when you need to!
  • Change Clothes Shops
  • Change Petrol Station
  • Change your car
  • Change your Ways!!!

It is okay having this information but acting on it is very hard, sometimes it can take a massive effort as all the changes are a shock to the system.

We say this because when you have to cut back it can seem like a drastic change in lifestyle as you are used to buying luxury items that are not needed, this comes from emotional or impulse purchases, the money you used could have been used to clear other bills but the control is what was lacking.

Once you have impulse purchases under control, changes to your living expenses as mentioned above should start to have a positive impact on your weekly or monthly budget and ongoing expenditure. You should find you are reducing payments and other costs leaving you with more of a disposable income, the money you have left over each month after paying bills and all living costs.

Saving money can start with little things like where you buy your lunch each day or how you make it. Save on holidays, cars, nights out, clothes etc..

Life will seem strange but you will get used to it and then you can start a fresh!

If you have personal debt problems and are struggling to find a way to reduce repayments to credit card and loan companies, you can call our free from a landline personal debt helpline 24 hours a day, 7 days a week.  Call 0800 018 6868 free.

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If you find yourself with a financial problem and have bad credit or are unable to cope with mounting debt problems, then you may want to search the marketplace for information that can help you discover the best solution for reducing or eliminating personal debt.

There are a number of very authoritative internet debt consultants and resources online that offer information for getting out of debt and they could help you with your personal situation.

Be very careful that you do not jump in with the first company that comes along without doing some research about the company, how long has the debt company been in business? Make sure you ring them to see how professional their approach is. After all you want your affairs to be handled on an individual basis and your interests should be of the utmost importance.

Finding the best and highest quality of companies within the Debt Consolidation field will help and ensure your overall plan to reduce your indebtedness over the longterm is fruitful.

Unfortunately, there are a number of debt consolidation agencies, debt negotiators, and debt settlement consultants who will take you for a ride. If you find they are advertising their services saying that they can get your debts eliminated in 10 minutes or less, they are the kind of companies that you want avoid at all costs.

These claims are not justifiable and simply not possible. You need to work with a debt consolidation company that offers you viable and workable individual solutions to eliminate your debt in the medium to long term.

You must realise the real facts that no one can eliminate your debts without a personal Bankruptcy petition. Most debt management resources reduce debts through renegotiations with your creditors.

You will find that some personal debt consultants even claim to be able to “eliminate your interest rates” completely, this is not entirely truthful.

When a debt management company consolidates all of your unsecured debts, they will gather all of your unsecured debt repayments and roll them into one new single repayment, which then reduces your monthly outgoings.

If you aren’t dealing with an honest debt consolidation company or one that has a high reputation in the industry who can negotiate the best solution, there’s a very good possibility that they will also roll those high interest rates into your total debt, which may still reduce your monthly outgoing but unbeknown to you, will cause you to have a larger overall debt level.  Be very careful with this type of tactic.

Therefore, it is important that you ask the company or debt consultant about what it is they can do for you, after you have provided them with sufficient information for them to work out an overall plan.

Educate yourself a little with regard to what interest rates you have been paying on your current debts, so that you are empowered to have the knowledge to make an informed decision.

Above all, be prepared to pay a reasonable fee for the services of a reputable company. There is no such thing as a “free lunch”.  Someone has to pay the people who organise and negotiate on your behalf. Companies that claim that you don’t need to pay them anything are in fact being paid by the creditors and getting fees somewhere in the process. We find that many people would rather agree to pay a set fee and get on with the task of getting back on the right path.

You are advised to have all the proper paperwork regarding your debts organised and if possible obtain a copy of your credit report.

If you are in doubt, do some research of your own, telephone the companies that you have listed and contact them by phone.

Lewis Alexander Financial Management offer a first class personal Debt Management Service, nationwide throughout the UK. We have in house specialists who concentrate on debt management and loan consolidation and we have been looking after a great number of our clients for many years now.

Call the Lewis Alexander personal debt helpline using 0800 018 6868, our lines are open 24 hours a day, 7 days a week and your call is free.

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Mistakes People Make when Trying to Reduce Debt Problems

On December 21, 2009, in News, by Lewis Alexander

Many people who are in debt will automatically try to use their existing credit cards to consolidate their personal debts.

  • This is a mistake that can cost you dearly.

In the long term it can cause a greater indebtedness.  Usually, credit card companies will charge considerably more for the combined credit, applying interest rates that will be far greater than the current average of all your interest being applied to all your individual accounts. The last thing you would want is a higher interest rate leading yourself deeper into the cycle of debt.

The problem of getting into debt may have been primarily caused by the credit cards in the first place. It is already a well known fact that many debtors wanting to consolidate their loans are doing so because of unmanageable credit cards and therefore it makes little sense to use credit cards to consolidate personal debt!

  • The whole point of trying to reduce debt is that you should be working to decrease your bills and outgoings.
  • The common mistake people make is to take the easiest way out to pay off their debt with credit cards as they still have a line of credit available.
  • This can cause a problem in the not too distant future if the individual suffers a further change in personal circumstances.

It is so easy to use more credit to pay for existing bills by paying one bill off and adding a new balance to a new or exisiting credit card or loan that will need to be paid off in the future.

The way to reduce your debt would be to get cheaper or less expensive rates of credit and pay off the more expensive credit first, which is usually credit cards.

You will find that credit and loan companies have large resources at their disposal in terms of the best lenders rates available and will have a better negotiating stance than you for the best debt consolidation loan rates. That action would achieve the desired results by reducing the debt in the long and the short term.

  • Your only problem could be the fact that your personal credit rating does not allow for your lenders acceptance for providing this new loan.

Let us imagine for a moment that you owe money on your mortgage, car payments, insurance and some household bills such as electricity and gas.

Your first stop should always be to approach your mortgage company to let them know of your situation, they are a priority creditor.

  • Burying your head in the sand will not make your debt go away!

It is quite amazing that people would take the easy way out and pay their mortgage using their credit cards instead of approaching the mortgage company and informing them of the personal debt problems. You will find that mortgage lenders are usually understanding of your problem if approached early on.

If the hardship is caused by a temporary situation from being out of work for a short while then this contact between you and your creditors can become a financial lifesaver.

You will still need a professional debt advisor if your situation persists and it is important that you find a way to reduce your outgoings in the long run to ensure you do not get deeper into debt.

There are a number of ways that an amount of personal debt outstanding can be consolidated and rolled into one new monthly repayment. Some of the most chosen options follow;

Each case is different and that is where a debt management company usually excels itself in providing the best advice for your own individual needs.

Lewis Alexander Financial Management offers a first class personal Debt Management Service, nationwide throughout the UK. We are based in Manchester, England and we have helped thousands of consumers suffering with personal debt problems in our history.

We have in house specialists who concentrate on debt management plans and personal debt consolidation and we have been looking after a great number of our clients for many years now.

Call Lewis Alexander on their personal debt helpline using 0800 018 6868, our lines are open 24 hours a day, 7 days a week and your call is FREE.

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How does Debt Consolidation work?

On November 27, 2009, in News, by Lewis Alexander
  • How does Debt Consolidation work?
  • What is the best way to get Debt Help?

In our business of managing hundreds of clients finances and helping them with their debt consolidation, we have found that the biggest cause of stress in families is always regarding their personal debt and how best to manage the debt problem that can spiral out of control very easily.

We find that many people are not aware of the debt help that is available for people who genuinely want to reduce their debt and be able to cope with managing their income and expenditure.

There are many financial companies who have an excellent track record in helping people in this situation and these companies are able to ease their clients’ worries very quickly.

Debt consolidation is one method that can be used very effectively to reduce your outgoings and balance it with your in comings, especially with expert help.

  • Many people need educating in what one needs to do in this situation!

Contacting a debt consolidation company will help and educate them as to what decisions need to be made to effectively manage the current situation in the best possible way.  This in itself is a way that a client can receive immediate relief from the worries of not being able to cope financially and the ability to sit down or talk to a consultant over the phone will have long term benefits for the individuals financial future.

Over the many years of managing and clearing clients debts, our experience tells us that once a client contacts a debt management or debt consolidation company, they are put at ease, knowing that that they will not have to deal with a bailiff or collection agent knocking on their door demanding monies that they cannot afford.  The fact that the debt agency is there to help in this situation makes a huge difference.

  • What Is Debt Consolidation?

In the simplest terms, debt consolidation means that you take all of your individual unsecured or secured repayments such as credit cards, overdrafts, loans and catalogues etc and put them all together as one full amount owed. This full amount is the amount that is then arranged into one consolidated loan, offering the benefit of making one lower, affordable and reduced monthly repayment over a longer period initially, if necessary with the effect of reducing ones monthly outgoings.

  • The main purpose of this is to;

1)  Reduce the total amount of debt – this can be achieved effectively when you work closely with one lender who will pay off all your outstanding debt and consolidate it into one monthly repayment.

2)  Create one new payment to a new lender that is far smaller than all the individual payments to various lenders. Debt consolidation companies have much more experience dealing with lenders in this scenario and can also negotiate a much better rate of interest, effectively reducing your overall personal debt.

3)  Allowing you in time to reduce your overall debt if you can make slightly larger payments in due course will have the net effect that you would pay much less in interest over the whole period.

  • One of the benefits that occurs as a result of the above is that you end up with a much better organized financial statement regarding your income and expenditure.

We all find that many bills to pay means you have to be so much better organised and able to meet all the various payments at the due dates or end up paying penalties for late payments, causing you to pay much more in the long run and also affecting your credit rating along the way.

One outgoing for a loan is much easier managed than 10 different payments to various lenders!

  • What are my options when Consolidating my Debt?

1)  If you own your own home and have a reasonable amount of equity in your home you may consider the route of refinancing your existing mortgage to pay off other debts which will reduce your overall interest paid.

2)  If you have a fairly good credit rating you may be able to obtain a personal loan and many people would favor this as the equity in their homes has been drastically reduced in the last few years. You can find out more information about these specialist loans from good debt consolidation companies or debt counselors.

3)  If you have credit cards with large balances then you may opt to transfer all your other debts onto one single card, but you will end up paying higher interest or charges with this method.

4)  Many times you may be able to get help or assistance from family and friends, however, when one wants to keep a certain amount of privacy with financial affairs, most people are swayed against this course of action unless they have very good and open relations with family.  You are also likely to create tensions in family when the last thing you need is further tension, lack of privacy and stress.

5)  Seeking out a professional debt consolidation company – For many people this would be the best option, working closely with a time served and reputable company who have specialists in debt consolidation, debt management and debt reduction will really help you. The advantage is in the fact that they have an in depth knowledge of the areas concerned and also have very good working relationships with banks, credit card companies and general debt collectors and lenders. It is possible in many cases that they are able to negotiate better rates of interest and settlements.

It is important to note here that lately, there has been a surge in new companies operating in this debt arena, many of whom have very little track record and your interests are, shall we say, not their first priority!  It is very important that you do your homework and work with only the best companies that are prepared to look after your interests first, not their own.

Lewis Alexander Financial Management offer a first class personal Debt Management Service, nationwide throughout the UK. We are based in Manchester and we have helped thousands of client’s in our history.  We have in house specialists who concentrate on debt management and loan consolidation and we have been looking after a great number of our clients for many years now.

Call Lewis Alexander on their personal debt helpline using 0800 018 6868, our lines are open 24 hours a day, 7 days a week and your call is free.

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