One approach is to work with a debt management company, like Chiltern Debt Management or Debt Plan Direct.  Organisations of this type negotiate repayment terms with your creditors and make it possible to forward one monthly payment to the debt management agency that is then disbursed to your creditors.  The danger here is that some of your creditors will not accept the terms offered, leaving you with the task of still managing those debts outside the repayment scheme.

You can also consider filing bankruptcy.  This can be especially difficult for people who have taken pride in always paying their debts in the past.  Still, some financial advisors say that while bankruptcy may not be personally desirable, it may in fact be the most practical strategy in terms of getting finances back on track.  Discuss this option with a financial professional that can help assess your situation and determine if this is the mot logical solution to your debt dilemma.

In the end, no one can make the decision of how to manage overwhelming debt for you.  Take the time to examine all your options, identify the one that is in the best interest of you and your household, then move forward with that option.  While it may be somewhat embarrassing and unpalatable at first, making the right choice will provide a great deal of relief in the long run.

Personal Finance News / Money Saving News

Dealing With Overwhelming Debt

Personal Finance News / Money Saving News

Do you need a present on a budget?

One of the most common mistakes people make is to write down the personal information number or PIN that is associated with the account.  Some people even keep that piece of paper in a wallet or purse right along with the credit card itself.  In the event that the purse or wallet is stolen, the thief has all he or she needs to use the card with abandon.  If you must write down your PIN, keep the paper in a secure place around the house.  If you can avoid writing down the PIN at all, then do so.

Many people use their cards to shop online.  That’s fine, as long as the web site is secure.  Shopping at web sites that are not identified as secure increases the changes of your information being stolen.  Always shop at secure sites, and no other.

When using your debit or credit card in a local shop, always make sure that no one is close enough to make note of the keys you touch when entering your PIN.  Use your body to block the view of the keypad and the display screen.  In addition, always return your card to your purse or wallet immediately, instead of leaving it in plain view while you complete the transaction.  A thief with good vision and a photographic memory can easily note the account number and the PIN without arousing suspicion, and use that information later.

Protecting your card not only helps decrease the possibility of becoming a victim, it will also help you protect your credit rating.  Use your card whenever you like, but be mindful that prying eyes may be watching and take the proper precautions.

Personal Finance News / Money Saving News

Protecting Your Debt or Credit Card from Fraudulent Usage

First, look closely at your variable expenses.  These are any expenses where you have some control over the amount from one month to the next.  Gas and electricity as well as other utilities, food, and similar expenses all fall into this category.  There is a good chance you can lower these monthly costs and thus begin to live within your means.

To lower food costs, plan menus and buy accordingly.  Limit or eliminate meals out for a time, since eating at home is often cheaper as well as more nutritious.  Go to the supermarket no more than once a week.  If you run out of something, learn to make do until the next scheduled shopping trip.  You’ll be surprised how quickly you find that you can adjust and cope with relatively little inconvenience.

With utilities, look at the way you use them.  Can you set the thermostat so the home is a little warmer in summer and cooler in winter?  Even a small adjustment can make a significant difference in your heating and cooling costs.

Never impulse buy, in stores or online.  Stop and ask yourself if the item will provide the same level of satisfaction three days from now.  If not, you don’t really need it.

Make better use of what you have.  Instead of buying a new outfit each month, learn to mix and match the clothing you already own and create a new look.  Consider creating an exchange club with neighbours or friends, and exchange items like books, DVDs or other items that you no longer want for items that you do.   Once a week, declare one day where you will not spend any money at all, and stick to it.

All these strategies can help you reduce unnecessary spending and thus allow you to live within your means once more.  As you gain discipline, you may even find there are funds left over to begin retiring credit card balances, make an extra payment on the car loan, or even put a little money away in savings.  In any case, you’ll feel better about yourself, and your financial situation.

Personal Finance News / Money Saving News

Tips to Spending Less Than You Earn

One of the most effective ways to avoid an overdraft situation is to always live beneath your means.  Determine that you will find a way to live on 80% of your monthly income, rather than relying on the whole amount.  Over time, you create a cushion within your account that helps you be less susceptible to overdrafts.  As a bonus, you’ll find it easier to set aside money for savings.

To further minimise the chances of an overdraft, secure a prepaid credit card, and use it for incidental purchases.  One of the more common reasons why people overdraft an account is a failure to keep up with the purchases they make using the associated debit card.  As a result, when that automatic withdrawal for your mortgage payment hits your account, an overdraft occurs and fees are charged.  With the prepaid card, you can only spend the amount that is available on the card, and do not impact your bank account in any way.

The cumulative effect of being overdrawn for the entire year is much worse than most people suspect.  A significant amount of money is consumed the longer you live in the red, money that could be diverted to any number of worthy causes.  With inflation predicted to increase for some time, you’ll need that money more than ever.  Take steps today to make sure it is there when you need it.

Personal Finance News / Money Saving News

Avoiding Overdrafts

First, minimise your impulse spending.  While it’s fine to treat yourself now and then, keep the treats within reason.  If it’s too easy to use a debit or credit card to indulge yourself, then leave the plastic at home and take only enough cash to pay for what you need.  You’ll be surprised at how much you save over the course of a month.

Cook at home more.  Set aside one night a week to eat out, but prepare all your other meals at home.  Make enough so there are leftovers for lunch the following day.  In addition to stretching your income a bit, you will probably eat more nutritious meals and lose a little of that extra weight gained over the holidays.

Consider your options for savings accounts.  Make sure you are getting the best interest rate possible.  If you can commit to leaving the money in place for as much as three years to get a better rate, than do it.  Capital One, Barclays, and HSBC are just a few of your options.  A little time spent finding and securing the best rate will go a long way toward increasing your financial security.

There are other ways to save a little money and stretch your income a bit.  Take a good look at your spending habits and how you run the household.  Chances are you will think of one or two other ways you can make minor changes and end up living much more comfortably, without feeling as if you are doing without.

Personal Finance News / Money Saving News

Stretching Your Monthly Income

One simple way to avoid exorbitant interest rates is to pay off your balances every month.  Doing so will mean that your average daily balance is quite low and thus subject to little or not interest charges at all.  Make sure your payments are made in time for them to be posted before your due date, or you will certainly be assessed additional interest charges.

Another approach is to transfer the balances from credit cards with higher interest rates to cards that carry a lower rate of interest.  This may be a viable approach if paying off your current balances is not feasible.  At the very least, you’ll reduce the interest paid as you settle the balances, allowing you to keep a little extra money in your pocket.

There is always the option of going with a prepaid credit card from a reliable provider, like the Bread Card or the CashPlus Prepaid MasterCard.  Simply load the card with the amount you will allow yourself to spend during the course of the month, and use the card for whatever purchases you normally make with plastic.  You avoid the interest rates altogether by employing this strategy, and never have to worry about missing a due date and seeing the interest rate increase substantially.

Positioning your finances to minimise the impact of higher credit card rates may take some time.  Begin today by making changes in the way you use the cards, even as you make plans to retire the balances as soon as possible.  Over the course of a year, you’ll save a lot of money, which just might allow you to pay cash for some of those purchase you used to make on credit.

Personal Finance News / Money Saving News

Overcoming High Interest Rates on Credit Cards

Sell My Mobile

draws and cupboards, and in some cases thrown away.

With the launch of SellMyMobile.com this is about to change, as this new service offers its visitors a way of selling their old phones online for the best price whilst also helping out the environment.

There are thousands of old mobile phones in the UK that aren’t being used and trading them in with Sell My Mobile brings an array of benefits not only for the seller but also for those in third world countries. Most of the phones sold through Sell My Mobile get cleaned up, repaired, and then sent out to those less fortunate but if the phone is unusable or the condition is poor they get sent out to smelters who can then reclaim the precious materials that make up the mobile phone.

The website itself is very simple to use and the process takes just minute to get the ball rolling. All a visitor needs to do is type their mobile phones model into the search facility which will bring back a selection of prices that have been compared from all the UK’s leading phone recyclers. The visitor can then pick the best price that has been offered, fill out a few details and then they will receive an e-mail with information on how they can send their mobile phone to the recycler (postage will be freepost so there is no cost involved for the seller). Within a few working days a cheque will arrive in the post for the price of the phone that was selected. It really couldn’t be any more straightforward and provides an ideal way to help finances in such a tough economical time.

Personal Finance News / Money Saving News

Sell My Mobile – New Phone Recycling Price Comparison Website Launches

News that HSBC and RBS are now only accepting credit card applications from their existing customers has some people wondering if they should even bother trying to obtain a credit card. The answer is yes, but you need to move quickly.

Currently, there are still many credit card providers who will accept applications from prospective customers as well as current ones. However, since a number of institutions are expected to follow the example set by RBS and HSBC, it is highly likely that those opportunities will decrease noticeably by the end of the year. This means if you were thinking of obtaining a credit card as part of your recession recovery plan, you need to evaluate credit card plans now.

Look for important aspects of the card, such as what interest rate you will be charged after the introductory period is over. Also be mindful of hidden fees buried deeply in the terms and conditions that could increase your monthly minimum payment. Even though you should hurry, don’t jump on the first offer that comes your way; consider all options first.

One strategy that you may find to your liking is the use of prepaid credit cards. If your main goal is to refrain from carrying a great deal of cash, this option is working looking into. As a bonus, you can never spend more than the amount you’ve loaded on the card, so there is no danger of going over a credit limit.

However, the majority of prepaid card offers in the UK do not report to the major credit reporting agencies. This means that unless you contract with one of the few that do, a prepaid card will not help you rebuild your damaged credit in any direct manner.

Credit cards are practical and, when used wisely, are excellent financial tools. Find the right plan, and you will be on your way to a more secure financial future.

Personal Finance News / Money Saving News

Can You Still Be Approved For A Credit Card?

One of the outcomes of the recession is that many people who had no trouble keeping up with their credit card balances suddenly found themselves unable to manage them effectively. This was sometimes due to changes in interest rates, or because of the loss of employment and the subsequent drop in monthly income. Even with the recession waning, some households are still having problems managing their credit card debt. Here are some tips on how to improve your situation.

Your first step is to admit you need help. For many, this is a difficult admission, since it tends to conjure up feelings of failure. Tell yourself that by seeking help, you are actually demonstrating that you are responsible enough to realise things must change and that you want to learn new skills that will restore your financial health.

Next, take steps to get the help and financial education you need. Attend seminars on managing credit card debt, using credit responsibly, and how to rebuild your credit rating over time. In addition to local resources, investigate what sites like Debt Advice and the Debt Advisory Line have to offer. While you will no doubt have to make some lifestyle changes, they may not be as dire as you think.

Last, put a plan in place that will allow you to retire those balances. You may go through a debt management agency to create this plan, or work one out with your creditors personally. Both approaches are workable, as long as you stick to the plan and do not allow yourself to slide back into old spending habits. As you watch your credit card debt drop, you will feel empowered once more, and find that it is much easier to think of the future in a more positive manner.

Personal Finance News / Money Saving News

Are Your Credit Card Balances Out Of Control?