Updates from Mark Aucamp RSS
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01:41:26 pm on June 27, 2009 |
According to Credit Action almost sixty-six percent of Britons had seen their finances stretched by the current recession. It seems that 31% of households are now so worried about the state of their finances that they are considering missing essential repayments on credit cards, loans and mortgages. Research by Mintel has shown that over five million adults had already been ‘hit hard’ by the current economic downturn and are struggling to make ends meet. So it is understandable that people are seeking money saving experts for advice and help with their rising debt problems.
The Consumer Credit Counselling Service (CCCS) has said that fewer people are in a position to repay their debts: in 2008 only around 35% of clients were able to commit to a Debt Management Plan compared with 42% of clients in 2007 and 46% in 2006. They also suggested that clients seeking their help are becoming more affluent: twelve percent have a net household income of more than ?30,000 a year and 47% of those seeking help were homeowners. Homeowners seemed to owe on average 83% more than clients renting their homes. The vast majority of CCCS clients owed money on credit cards and personal loans, with the average client owing ?14,000 on each of these items.
Given that we have so much debt (loan, mortgage, credit card debt) and despair around today, it seems that a whole industry has grown up around helping people in debt to control their obligations to their providers by offering them debt solutions like Debt Management Plan, Individual Voluntary Arrangement and Bankruptcy. There are debt companies that charge an upfront fee and a monthly charge for providing their services and there are charitable debt organisations that are profit free and offer the client a free service. Before approaching any of these companies you should first speak with your credit card and loan providers to see if a deal can be arranged.
Recently a client of mine explained that he and his wife had spoken to their credit company about their ?25,000 balance that was outstanding and their sudden drop in income. Their credit card provider asked them to submit a ’statement of their income and expenditure’ and then they agreed to a monthly payment of ?50 with the interest being frozen. They had originally been paying ?500 a month. What a result!
I have since spoken to a number of people in similar circumstances who have found that their credit card providers were willing to talk to them in order to find a solution. One credit card provider offered to freeze the interest rate and to reduce the payments down for a period of eight months initially. Whilst another provider was willing to freeze the interest rate and to divide the debt by 120 months (ten years) as long as the client agreed to continue paying the debt off. Other finance providers were willing to talk as long as you were honest and open about your circumstances.
This advice is only worth following if you are able to pay a reasonable amount towards your debt each month. If you are unable to make a reasonable payment then you should consider approaching a debt management company or organisation for help and guidance. What ever you do don’t stop making a payment to everybody you owe money to and do talk to your creditors first. If you just stop paying them they will hound you with phone calls all day long and then they will sell your debt to a company that will now start knocking at your front door to retrieve their money. What ever you do don’t stop paying your mortgage or any secured loans as this will result in you losing your home through repossession.
I have purposely not included the names of the credit card companies as they all offer different solutions and just because they offered one person a solution does not mean that you may qualify for the same solution due to your circumstances. Be cautious of any debt help where you are advised or cajoled to go down the bankruptcy or the Individual Voluntary Arrangement (IVA) route as a quick solution. A debt solution should be a structured way to get out of debt and it needs to be right for your circumstances.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally! To check your Experi
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02:59:35 pm on June 2, 2009 |
Any expert would tell you to sit down and analysis your current spending habit before considering any money saving ideas and tips. You should do a budget of all your income and expenses and see how much money you have left at the end of the month. Armed with your spending information you should then consider the money saving tips below. Keep a record of how much you should be saving next month and compare the results. It is important that you continue this exercise annually.
In the current market it is difficult to know what to do with your savings so I suggest you consider looking at the last money saving idea for a tip that will save you thousands of pounds in the future
Switch to Freeview TV
Switch to Freeview digital TV and save up to ?200 a year. You will need to buy a Digi-box receiver for around ?50. Then you will receive more than 40 free digital TV Channels for free and there?s no monthly subscription to be paid.
Switching your Gas and Electricity Providers
Consider switching your fuel providers it could save you ?100?s. As a nation we don?t like changing our utility providers and as a result our suppliers don?t offer us any better deals. They use their cheaper deals to entice new customers. Use a Comparison site to find the best deals around for your Gas and Electricity.
Cheaper Telephone and Broadband bills
Shop around for cheaper telephone and broadband suppliers. Many providers offer cheaper dual packages and low-cost dial up services as well as cheaper line rental. Use a Comparison site to find the best deals around today.
Reduce your Mobile Phone costs
Consider switching your mobile from a monthly contract to a pay-as-you-go scheme if you don?t use your mobile a lot. If your family all have a mobile phone then you should consider a package with all the phones included. Make sure that you all share the number of call minutes and the texts each month. There are deals around that will provide you with new phones within the package and they will allow you to alter the number of texts and call minutes each month.
Shop around for Better value Insurance Cover
Shop around for cheaper Car Insurance, Building & Contents Insurance and Life Insurance. Remember everything that glitters is not golden. When looking to rebroke or change Insurance providers you need to compare like with like and not on price alone. Always look for the same cover and definitions for each Insurance policy or a better policy for a cheaper price when looking to change providers.
The cost of life cover only Insurance has reduced due to the fact that we are all living longer and the unthinkable has happened Life Insurance policies have become cheaper.
If you have any Critical Illness Insurance cover then tread very carefully and use a mortgage broker to rearrange a cheaper policy for you. The reason for this is the Insurance companies have changed many of their Insurance cover definitions and the number of conditions that they will cover. For peace of mind you should use a mortgage broker for protection. Should they change a good policy for an inferior policy then you could claim compensation for negligence.
Food Shopping
1. Always make a list and try not to deviate from your shopping list.
2. Don?t take your children or husband shopping as you will probably find it really hard to say no when they ask for something and they will only increase your shopping bill.
3. Have your supermarket shopping delivered, it?s a great way of ordering what you need to maintain your weekly budget.
4. Try and cook all meals from fresh, they are healthier than ready made meals and more nutritious. Invest in a cook book if you lack inspiration or knowledge.
5. Look for a Farm shop with a butchery attached; our local Farm shop sells half a Lamb for ?20 and half a Pig for ?30 they are already frozen ready for the freezer. What a bargain!
6. Consider using the supermarkets own-brand products as they are often the same or similar as branded products without the brand name and price tag.
7. When last did you shop at your local market? The food is generally cheaper and fresher from your local market as they have lower overheads and can therefore pass on the savings to you.
8. Use the discount supermarkets like Asda, Aldi and Lidl. There are big savings to be made here. Don?t worry about shopping here; the food is quality and the car park is full of expensive cars, which suggests that everybody is shopping here ? rich or poor.
Always ask yourself whether or not you really need a product or service and always consider alternatives. Don?t be enticed to buy the special offers like, buy-one-get-one-free promotions or the 30% off discount offer. It?s not a bargain if you don?t need it in the first place. Remember a bargain or an offer is either priced to get rid of stock quickly for a reason or it is priced into the product to start with.
Save money by Buying in the Sales
Clothes we all agree are cheaper if bought during shop sales. It?s possible to save a hundred pounds or more on a designer evening dress or a suit or any other type of clothing. Sometimes we just need to be patient and not be impulsive when deciding to buy items. Slowly, slowly catch a Bargain!Have a look in the charity shops. You will be amazed at the designer clothes and the quality of some of the items they have for sale.
Always check on e-Bay for anything that you are considering buying, people all over the country sell clothes that are new or nearly new and have either never been worn or are nearly new. There are some real bargains to be had if you are willing to spend the time searching.
Recently there have been some swap sites being launched on the internet to swap designer clothes for cash or other garments.
Consider Shopping Online
The internet has grown rapidly over the past five years and you can buy just about anything while sat at home in a comfy chair. You can use the comparison websites to search out the cheapest price for the item that you are looking for and you can compare one brand with another without leaving your chair.
Are you claiming all your allowance
Many of us don?t know what benefits and tax credits we and our families are entitled to when it comes to claiming for Pension Credits, Child Benefit, Child tax Credits, Working Tax credits, etc. It is reckoned that around ?8 billion a year is not claimed by people who are entitled to claim benefits.
Prepaid Credit Cards
I love this idea as it gives you all the benefits without the credit card balance and you cannot overspend on it. To use a prepaid credit card you need to transfer an amount of money onto the card first before you go shopping. I guarantee that you will only spend what you can afford. This is a truly money saving product that everybody should have.
Quit Smoking
If you are smoking 20 cigarettes a day then you will be spending around ?2,117 a year or more. This is a mind blowing amount of money and it will just be going up in smoke.Now look at the benefits to your health and the health of your children, family and friends. We found when my wife and I gave up smoking that the house smelt cleaner and fresher. Our home does not need painting inside as often anymore, which is now saving us a small fortune as we don?t need to paint as often.
Just think if you packed in the weed, you and your family could enjoy a foreign annual holiday each year. You could choose to overpay your mortgage and finish paying it earlier. Alternatively, you could choose to save the money over the next twenty five years and save ?52,925 plus any interest. Wow! What are you waiting for?
One persons junk is another?s pride and joy
Consider selling anything that you haven?t used in the last two or three years. This is a pretty good indicator of whether or not you need it or not and if you have not used it the chances are that you don not need it. Sell it for some hard cash on e-bay.
Annual Holidays
This year is an exception compared with previous years when we were all going to America and other exotic holiday destinations. Now we find that our money in America won?t go as far as it did last year due to the exchange rate. Our European holidays have also just become more expensive due to the exchange rate. America is now 25% more expensive and the Euro is nearly on a parity with the Pound. So why not have a holiday in the UK and support our economy. At least your money will be worth the same and you will save on the cost of holiday travel. You would be surprised at how beautiful our island is.
Savings
If you are fortunate to have any savings then your need to search out the best Individual Savings Account (Isa) accounts. You can also chose to save up to ?850 per month split between the two types of accounts.
An Isa provides Tax-free savings and a saver can invest up to ?10,200 into an Isa each tax year irrespective of whether you are a low or high rate taxpayer.Under the new provision announced by The Chancellor Alistair Darling in the last budget you can be put ?5,100 into a cash Isa or a saving account and ?5,100 can be invested in stocks and shares.
You can withdraw your money at anytime as long as you have not locked them into a fixed rate deal, once the money is withdrawn you cannot return it and if you withdraw during the year you will lose the tax-free incentive and the money will become taxable in the year you with draw it.
If you are a lower or high rate taxpayer then you will not pay any tax on the money invested in an Isa each year. Under normal circumstances you would pay 40% on the interest received from other saving schemes. If you are a lower rate taxpayer then you would pay 20% on the interest received from other saving schemes.
Your Mortgage
At present your only hope if you have any savings is a maximum return of 1.5% per year ? this is appalling and outrageous! So why not over pay your mortgage which will be on an interest rate of 4% to 7% depending on your mortgage deal. By overpaying your current mortgage will save you many thousands of pounds in interest and you can choose to reduce the term of your mortgage as well. Imagine paying your mortgage off two or three years early. If you paid ?500 per month and you were to overpay your mortgage and you paid it off three years earlier you will save ?18,000 plus the interest you would not be paying
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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02:53:44 pm on June 2, 2009 |
Mortgage resuscitation required urgently!
The UK housing market will not recover until the mortgage market is fixed and expert advice at the Bank of England says, print more money in the hope of saving our economy from a long and drawn out recession is the answer. The Council of Mortgage Lenders says the number of UK households with mortgages is 11.7 million and has a value of over ?1.2 trillion of these approximately 51% are fixed rate mortgages; 40% are on tracker, discounted or variable rate mortgages and less than 8% are on their lenders standard variable interest rate scheme. The mortgage market needs urgent resuscitation and repair to restore the banks lending confidence. We may have green shoots appearing across our economy but they don?t seem to have any roots yet.
A recent poll of 539 professional mortgage brokers by Exact Mortgage Expert suggested that house prices were likely to continue falling for the next six to twelve months and the housing market had not bottomed out yet. Many housing commentators feel that the market still has a further 6% to 7% to fall before we reach this illusive bottom is found. Lloyds Banking Group say that the decline in property prices this year is around17.7% with the average home now valued at ?154,716. In the last year the average property value has plummeted by ?33,264.
Sub-Prime borrower in Limbo
According to the latest Mintel, one third of the UK mortgage borrowers are facing financial difficulties and 1.5 million have fallen behind with their monthly mortgage payments. Those borrowers that have fallen behind with their repayments are considered by future lenders as sub-prime borrowers and they are offered less than favourable interest rates when they come to remortgage. There are now only two lenders remaining that will consider sub-prime or non-standard mortgages compared with the non-standard or sub-prime industry prior to August 2007 when the ?Credit Crunch? started. Whilst the lenders have disappeared the sub-prime borrowers have remained in limbo not knowing where to go or what to do and the number new recruits has swelled.
Since the rescue of the banking system by the Government last year and the sharp drop in the base rate by the Bank of England it seems that all the lenders have lost their appetite to lend money to homeowners and potential new borrowers. Lenders are nervous about incurring further losses and have drastically tightened their lending criteria. This means that borrowers are unable to refinance their homes easily and first-time borrowers now require a deposit of around 25% just to get on the property ladder. As a result of this large deposit being required many have turned to the bank of mum and dad for help in raising a deposit. The lenders have now become very choosy who they lend money to.
Finding a Mortgage
Borrowers looking for a new mortgage will find it impossible if they have suffered any adverse credit history within the last six years like:
A default issued by a lender, an Individual Voluntary Arrangement or a bankruptcy order.1.Any missed credit card and any loan payments.
2.Any missed mortgage and secured loan payments.
3.Need to borrow more than 90% of the value of your home.
4.Falling house price
5.In sufficient deposit to buy new homePlacing a mortgage is like riding in the Grand National
Mortgage brokers report that they are at their wits end trying to place mortgages with lenders in the current market. They liken the placement of a mortgage to being a jockey in the Grand National with all the steeple jumps needing to be jumped over to complete a mortgage application. Most lenders are inundated with mortgage applications which have slowed down their processing time. When finally they do look at the application three weeks later the payslips and bank statements are out of date and need to be updated. Then the valuers down value the property and the loan-to-value percentages changes and finally interest rates are pulled without notice. It?s a nightmare! To submit a mortgage and have it complete is a ?rare occurrence? and that?s assuming that you have jumped through all the hoops and met the lenders criteria.Seek a Debt Solution if you are struggling!
For those borrowers that require a non-standard or sub-prime mortgage it may finally be worth looking at a debt solution as debt consolidation is no longer an option open for reducing your debt by using your home as a ?Cash Machine.? If you are struggling to pay your credit card debts and unsecured loans then it may be time to get out of debt and seek advice and help. You need to seriously consider a Debt Management, Individual Voluntary Arrangement or possible bankruptcy proceedings. Don?t be rushed and think carefully about what you are doing. Always speak to your credit card and loan providers to see what they can do to help you first.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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02:51:07 pm on June 2, 2009 |
Mortgage resuscitation required urgently!
The UK housing market will not recover until the mortgage market is fixed and expert advice at the Bank of England says, print more money in the hope of saving our economy from a long and drawn out recession is the answer. The Council of Mortgage Lenders says the number of UK households with mortgages is 11.7 million and has a value of over ?1.2 trillion of these approximately 51% are fixed rate mortgages; 40% are on tracker, discounted or variable rate mortgages and less than 8% are on their lenders standard variable interest rate scheme. The mortgage market needs urgent resuscitation and repair to restore the banks lending confidence. We may have green shoots appearing across our economy but they don?t seem to have any roots yet.
A recent poll of 539 professional mortgage brokers by Exact Mortgage Expert suggested that house prices were likely to continue falling for the next six to twelve months and the housing market had not bottomed out yet. Many housing commentators feel that the market still has a further 6% to 7% to fall before we reach this illusive bottom is found. Lloyds Banking Group say that the decline in property prices this year is around17.7% with the average home now valued at ?154,716. In the last year the average property value has plummeted by ?33,264.
Sub-Prime borrower in Limbo
According to the latest Mintel, one third of the UK mortgage borrowers are facing financial difficulties and 1.5 million have fallen behind with their monthly mortgage payments. Those borrowers that have fallen behind with their repayments are considered by future lenders as sub-prime borrowers and they are offered less than favourable interest rates when they come to remortgage. There are now only two lenders remaining that will consider sub-prime or non-standard mortgages compared with the non-standard or sub-prime industry prior to August 2007 when the ?Credit Crunch? started. Whilst the lenders have disappeared the sub-prime borrowers have remained in limbo not knowing where to go or what to do and the number new recruits has swelled.
Since the rescue of the banking system by the Government last year and the sharp drop in the base rate by the Bank of England it seems that all the lenders have lost their appetite to lend money to homeowners and potential new borrowers. Lenders are nervous about incurring further losses and have drastically tightened their lending criteria. This means that borrowers are unable to refinance their homes easily and first-time borrowers now require a deposit of around 25% just to get on the property ladder. As a result of this large deposit being required many have turned to the bank of mum and dad for help in raising a deposit. The lenders have now become very choosy who they lend money to.
Finding a Mortgage
Borrowers looking for a new mortgage will find it impossible if they have suffered any adverse credit history within the last six years like:
A default issued by a lender, an Individual Voluntary Arrangement or a bankruptcy order.1.Any missed credit card and any loan payments.
2.Any missed mortgage and secured loan payments.
3.Need to borrow more than 90% of the value of your home.
4.Falling house price
5.In sufficient deposit to buy new homePlacing a mortgage is like riding in the Grand National
Mortgage brokers report that they are at their wits end trying to place mortgages with lenders in the current market. They liken the placement of a mortgage to being a jockey in the Grand National with all the steeple jumps needing to be jumped over to complete a mortgage application. Most lenders are inundated with mortgage applications which have slowed down their processing time. When finally they do look at the application three weeks later the payslips and bank statements are out of date and need to be updated. Then the valuers down value the property and the loan-to-value percentages changes and finally interest rates are pulled without notice. It?s a nightmare! To submit a mortgage and have it complete is a ?rare occurrence? and that?s assuming that you have jumped through all the hoops and met the lenders criteria.Seek a Debt Solution if you are struggling!
For those borrowers that require a non-standard or sub-prime mortgage it may finally be worth looking at a debt solution as debt consolidation is no longer an option open for reducing your debt by using your home as a ?Cash Machine.? If you are struggling to pay your credit card debts and unsecured loans then it may be time to get out of debt and seek advice and help. You need to seriously consider a Debt Management, Individual Voluntary Arrangement or possible bankruptcy proceedings. Don?t be rushed and think carefully about what you are doing. Always speak to your credit card and loan providers to see what they can do to help you first.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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02:46:59 pm on June 2, 2009 |
Now more than ever it pays to be savvy when it comes to getting the credit you need to run your life. Luckily, you don?t have to be an expert to stay on the money. These simple steps could help you find financial success.
Do know what you owe?
In the current climate, you need to know exactly where you are before making plans ? and what you really owe could come as a wake-up call. Instead of wading through files and old bills, you can find your credit accounts, from credit and store cards to loans, mortgages and even mobile phone accounts, listed in your credit report, along with your repayment record. You can see your Experian credit report for free with a 30-day trial of CreditExpert, the online credit monitoring and ID fraud protection service.
?and don?t stick your head in the sand
The worst thing you can do is nothing. Interest could be mounting up on borrowing you?ve forgotten, so you could end up owing even more in the long run.
Do keep up with your repayments?
It can be tempting to skip the occasional repayment if you?re having a tough month but you could rack up penalties and interest ? and it will be recorded on your credit report for at least three years, where lenders will see it when you make a new application.
?and don?t be afraid to talk to your lenders
If you?re having financial problems it?s in their interest, as well as yours, to come up with a sensible solution. Together, you may be able to agree a new schedule of affordable payments, although this may mean that it will take longer to clear what you owe.
Do your research?
When you need a card, loan or credit account of any kind, research what?s on offer ? visit personal finance and price comparison sites to see what?s out there and what matches your circumstances. You?ll stand a better chance if you ask for an appropriate and affordable deal.
?and don?t take a scattergun approach
There?s no point in firing off lots of applications in the hope that one of them will succeed. Not only could you get turned down, but you could damage your credit rating in the process. Each application will trigger a search by the lender and these leave a record on your credit report. If other prospective lenders see a lot of these, they could fear you?re overstretched, out of financial control or even suspect a fraud.
Do shred before you bin?
ID fraud is one of the UK?s fastest-growing crimes, so make sure thieves can?t get hold of personal or sensitive information from your rubbish and use it to borrow money in your name or max out your accounts.
?and don?t put too much in the recycling
You may think you?re doing your bit for the environment but you could also be offering a free gift to a thief. Remove the address or account information from all letters and documents before you put them in the box ? even an old catalogue could put your ID at risk if a bin raider picks it up.
Do check your credit report regularly?
Lenders look at your credit report every time you apply to them and when they?re setting interest rates and other conditions, so it pays to be sure that all the information it contains is up to date and accurately reflects your situation. You?ll also be able to spot suspicious applications or transactions that could indicate attempted ID fraud.
?and don?t assume everything?s okay
If you haven?t received any payment demands or red bills, don?t assume you have a good credit rating. A simple clerical error or misunderstanding could damage your credit status, so make regular checks on your credit report part of your financial routine. A credit monitoring like CreditExpert can help ? members receive an email or text alert every time there is a significant change, like a late payment recorded by a lender or a large change to a credit account balance.
Do put a shine on your credit history?
If you can demonstrate that you are a responsible borrower with a stable lifestyle, you have a better chance of getting the deals you want. You can improve your credit status by taking simple steps ? for example, ask lenders to correct any errors in your credit report, close unused accounts and register to vote at your current address.
?and don?t assume the past is over and gone
If you?ve been bankrupt, taken out an IVA or had court judgments against you for debt, the evidence remains on your credit report for at least six years and even a missed repayment can be seen by lenders for at least three years. If special circumstances, such as illness, an accident, redundancy or divorce, were behind any past problems, you can add a note of explanation that lenders may take into account when deciding whether to make you an offer.
Do ask for help
If you?re having problems, get free, professional advice. Try Citizens Advice at adviceguide.org.uk, National Debtline at nationaldebtline.co.uk or the Consumer Credit Counselling Service at cccs.co.uk. As well as offering advice on how to manage and reduce your debts, these organisations have the legal right to negotiate with creditors on your behalf.
?and don?t be tempted by offers that are too good to be true
?There is no magic spell that will allow you to walk away from money troubles without any consequences and only you can sort out your credit status, so be wary of miracle cures for your financial ailments. They almost always cost you money you can?t ?
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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02:44:22 pm on June 2, 2009 |
Now more than ever it pays to be savvy when it comes to getting the credit you need to run your life. Luckily, you don?t have to be an expert to stay on the money. These simple steps could help you find financial success.
Do know what you owe?
In the current climate, you need to know exactly where you are before making plans ? and what you really owe could come as a wake-up call. Instead of wading through files and old bills, you can find your credit accounts, from credit and store cards to loans, mortgages and even mobile phone accounts, listed in your credit report, along with your repayment record. You can see your Experian credit report for free with a 30-day trial of CreditExpert, the online credit monitoring and ID fraud protection service.
?and don?t stick your head in the sand
The worst thing you can do is nothing. Interest could be mounting up on borrowing you?ve forgotten, so you could end up owing even more in the long run.
Do keep up with your repayments?
It can be tempting to skip the occasional repayment if you?re having a tough month but you could rack up penalties and interest ? and it will be recorded on your credit report for at least three years, where lenders will see it when you make a new application.
?and don?t be afraid to talk to your lenders
If you?re having financial problems it?s in their interest, as well as yours, to come up with a sensible solution. Together, you may be able to agree a new schedule of affordable payments, although this may mean that it will take longer to clear what you owe.
Do your research?
When you need a card, loan or credit account of any kind, research what?s on offer ? visit personal finance and price comparison sites to see what?s out there and what matches your circumstances. You?ll stand a better chance if you ask for an appropriate and affordable deal.
?and don?t take a scattergun approach
There?s no point in firing off lots of applications in the hope that one of them will succeed. Not only could you get turned down, but you could damage your credit rating in the process. Each application will trigger a search by the lender and these leave a record on your credit report. If other prospective lenders see a lot of these, they could fear you?re overstretched, out of financial control or even suspect a fraud.
Do shred before you bin?
ID fraud is one of the UK?s fastest-growing crimes, so make sure thieves can?t get hold of personal or sensitive information from your rubbish and use it to borrow money in your name or max out your accounts.
?and don?t put too much in the recycling
You may think you?re doing your bit for the environment but you could also be offering a free gift to a thief. Remove the address or account information from all letters and documents before you put them in the box ? even an old catalogue could put your ID at risk if a bin raider picks it up.
Do check your credit report regularly?
Lenders look at your credit report every time you apply to them and when they?re setting interest rates and other conditions, so it pays to be sure that all the information it contains is up to date and accurately reflects your situation. You?ll also be able to spot suspicious applications or transactions that could indicate attempted ID fraud.
?and don?t assume everything?s okay
If you haven?t received any payment demands or red bills, don?t assume you have a good credit rating. A simple clerical error or misunderstanding could damage your credit status, so make regular checks on your credit report part of your financial routine. A credit monitoring like CreditExpert can help ? members receive an email or text alert every time there is a significant change, like a late payment recorded by a lender or a large change to a credit account balance.
Do put a shine on your credit history?
If you can demonstrate that you are a responsible borrower with a stable lifestyle, you have a better chance of getting the deals you want. You can improve your credit status by taking simple steps ? for example, ask lenders to correct any errors in your credit report, close unused accounts and register to vote at your current address.
?and don?t assume the past is over and gone
If you?ve been bankrupt, taken out an IVA or had court judgments against you for debt, the evidence remains on your credit report for at least six years and even a missed repayment can be seen by lenders for at least three years. If special circumstances, such as illness, an accident, redundancy or divorce, were behind any past problems, you can add a note of explanation that lenders may take into account when deciding whether to make you an offer.
Do ask for help
If you?re having problems, get free, professional advice. Try Citizens Advice at adviceguide.org.uk, National Debtline at nationaldebtline.co.uk or the Consumer Credit Counselling Service at cccs.co.uk. As well as offering advice on how to manage and reduce your debts, these organisations have the legal right to negotiate with creditors on your behalf.
?and don?t be tempted by offers that are too good to be true
?There is no magic spell that will allow you to walk away from money troubles without any consequences and only you can sort out your credit status, so be wary of miracle cures for your financial ailments. They almost always cost you money you can?t ?
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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02:39:52 pm on June 2, 2009 |
The situation as I see it!
Money seems to be in short supply; interest rates offered by banks for saving money remains diabolical; unemployment is expected to increase by quarter of a million as students leave university and college and members of Parliament from all sides of the political spectrum have exploited their expenses for years. Meanwhile the Royal Bank of Scotland which we all co-own has warned that they are preparing for two ?very tough? years after they announced yet more losses for the first three months of this year. Confidence is a fine grey line and the experts are still scrambling around trying to find solutions and answers. Do we really believe that the recession is nearing the end?
The Bank of England decided to keep interest rates at 0.5% which is at an all time low after their monthly monetary meeting yesterday. It is thought that they are more concerned with the results of quantitative easing which they implemented earlier this year to inject money into the economy. They are now studying the economy for signs of improvements as they continue to print loads of money in an effort to get the economy moving again.
Estate agents around the country are reporting that more people were showing an interest in buying properties. One institute announces house prices starting to climb while another says they are still falling, who should we believe? The Halifax reported that housing affordability for first-time-buyers had improved substantially and was the best for six years in other words the house price to earning ratio had improved. Unfortunately, the average first-time-buyer still needs to find around ?20,000 as a deposit and to cover legal expenses. The amount of money spent on a mortgage each month had dropped from 48% in 2007 to 31% in 2009 mainly due to the cut in interest rates for borrowers on tracker rate and standard rate mortgages. This has not been the case for homeowners on a fixed rate mortgages.
Number of Mortgage schemes available rises
Mortgage Brain, is one of two live mortgage systems used by mortgage brokers? to search the market for the best mortgage and remortgage product for clients. They have reported an 8% increase in last month?s mortgage product available. The number of products available in March 2009 was 3,091 and on the 5th May 2009 it rose to 3,322 products available. Whilst this looks like a glimmer of hope it should be remembered that at the height of mortgage lending there was some 23,000 plus products available to homeowners to choose from.
During the past twelve months the number of mortgage products available has remained bleak with a 73% drop from this time last year. It seems that over the past two months the number of new mortgage schemes available has risen by 22%, which is good news. Although this information can be seen as encouraging I don?t believe that there is yet any indication that the market will bounce back today or tomorrow. There are bigger issues that need resolving first.
The stark Facts
This information is great news for borrowers and homeowners looking to borrow money for a mortgage up to 85% of the value of their home. Mortgage Lenders are still not showing any signs of offering mortgages to new clients with any adverse credit. If you have missed a mortgage, credit card or loan payments and you have less than 15% equity in your home then there is limited number of mortgage schemes available to you. Your only option is to remain with your current lender and take what they offer. Not an ideal situation I know! But hopefully you still have a roof over your head.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!Related Blogs about advice, best, broke, buyers, expert, first, homeowners, money, mortgage, saving, time, finances
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02:37:19 pm on June 2, 2009 |
The situation as I see it!
Money seems to be in short supply; interest rates offered by banks for saving money remains diabolical; unemployment is expected to increase by quarter of a million as students leave university and college and members of Parliament from all sides of the political spectrum have exploited their expenses for years. Meanwhile the Royal Bank of Scotland which we all co-own has warned that they are preparing for two ?very tough? years after they announced yet more losses for the first three months of this year. Confidence is a fine grey line and the experts are still scrambling around trying to find solutions and answers. Do we really believe that the recession is nearing the end?
The Bank of England decided to keep interest rates at 0.5% which is at an all time low after their monthly monetary meeting yesterday. It is thought that they are more concerned with the results of quantitative easing which they implemented earlier this year to inject money into the economy. They are now studying the economy for signs of improvements as they continue to print loads of money in an effort to get the economy moving again.
Estate agents around the country are reporting that more people were showing an interest in buying properties. One institute announces house prices starting to climb while another says they are still falling, who should we believe? The Halifax reported that housing affordability for first-time-buyers had improved substantially and was the best for six years in other words the house price to earning ratio had improved. Unfortunately, the average first-time-buyer still needs to find around ?20,000 as a deposit and to cover legal expenses. The amount of money spent on a mortgage each month had dropped from 48% in 2007 to 31% in 2009 mainly due to the cut in interest rates for borrowers on tracker rate and standard rate mortgages. This has not been the case for homeowners on a fixed rate mortgages.
Number of Mortgage schemes available rises
Mortgage Brain, is one of two live mortgage systems used by mortgage brokers? to search the market for the best mortgage and remortgage product for clients. They have reported an 8% increase in last month?s mortgage product available. The number of products available in March 2009 was 3,091 and on the 5th May 2009 it rose to 3,322 products available. Whilst this looks like a glimmer of hope it should be remembered that at the height of mortgage lending there was some 23,000 plus products available to homeowners to choose from.
During the past twelve months the number of mortgage products available has remained bleak with a 73% drop from this time last year. It seems that over the past two months the number of new mortgage schemes available has risen by 22%, which is good news. Although this information can be seen as encouraging I don?t believe that there is yet any indication that the market will bounce back today or tomorrow. There are bigger issues that need resolving first.
The stark Facts
This information is great news for borrowers and homeowners looking to borrow money for a mortgage up to 85% of the value of their home. Mortgage Lenders are still not showing any signs of offering mortgages to new clients with any adverse credit. If you have missed a mortgage, credit card or loan payments and you have less than 15% equity in your home then there is limited number of mortgage schemes available to you. Your only option is to remain with your current lender and take what they offer. Not an ideal situation I know! But hopefully you still have a roof over your head.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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10:27:12 am on May 4, 2009 |
The United Kingdom personal debt today stands at ?1,458 billion and the government intend to increase their debt to ?175 billion this year and similar figures for the next three years. The latest figures available from Credit Action this month suggests that the average household debt is ?59,765 including mortgages, ?1.02 billion will be spent on credit card purchases today and ?199 million will be paid in interest each day.
If you feel you are burdened with massive debts and finance problems then just consider these daunting statistics. Every ten minutes a home or property is repossessed and an average thirteen people are declared bankrupt every hour of the day. The government have even resorted to printing money to help their problems and 10.3 million British adults, have been hit so badly by the economic downturn that they are relying on their credit cards and other borrowings to help pay for there everyday living expenses. According to Post Office research they expect 2.6 million people are planning to spend more on their credit cards this year than they did last year in order to make ends meet.
What options are available if you are debt stricken?
There are currently four different ways to get out of debt. Each solution is designed to help people with different circumstances to repay their debts. They are:-
Debt Consolidation
If you have several debts like credit cards, personal loans, overdrafts, etc. Then you could arrange a personal unsecured loan that would allow you to repay the debt back over one to seven year. Alternatively you could choose to remortgage your home in an effort to spread your repayments over a longer period. This would bring down the monthly cost but you would pay more for the debt over the term of the new mortgage. Always think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage. Be certain that you can afford the new monthly repayments. If you cannot afford the repayments than one of the other debt solutions may be more suitable to your needs.
Debt Management Plan
This is an informal agreement between you and your creditors. Your creditors are the companies that you owe money to like a personal unsecured loan, car loans, credit cards, store cards, overdrafts, etc. A statement of account is drawn up detailing your income and expenditures like mortgage payments, gas, electricity, food, council tax, etc. This identifies the money you have left after you have paid all your bills to pay all your creditors. This can be arranged by yourself or you may choose one of the debt Management charity or the services of Debt Management Company. It is possible to have the interest rate frozen along with any other charges.
Individual Voluntary Arrangement or better known as an IVA
If you have accumulated unsecured debts of more than ?15,000 and you are unable to meet your commitments to your creditors to repay the money you owe them. An Individual Voluntary Arrangement (IVA) is a legally-binding agreement which is administered by an IVA practioner and agreed between you and your creditors. A realistic monthly contribution is agreed that is based on your ability to repay. The IVA agreement will last for a pre-determined length of time which is usually five years.
In order to proceed with an IVA agreement you will need at least 75% of your creditors to agree to your proposal for it to go ahead. At the end of that period any outstanding debt remaining will be written off and you will be debt free. You should be aware that if you are a homeowner you may be required by your creditors to release some of the equity in your home to help settle your IVA.The benefits of an IVA are the potential to write off a percentage of your overall debt; it will safeguard your home and your car; it will alleviate the day-to-day pressure from your creditors and it will help you avoid bankruptcy as long as you keep up the payments
Bankruptcy
Involves being declared bankrupt by a court of law for a period of 12 months, you are not allowed a bank account, and you could find yourself paying your creditors for the next three years before the full debt is written off. Your bankruptcy will remain on your credit file for the follow 6 years and some lenders in the future may still penalise you for many more years. You will be able to keep most of your household goods, your car for work as long as it costs around the ?1,500 and you will lose your home and any equity in your home.
Bankruptcy could be the right solution if you have little to lose, you cannot afford to pay back your debts, you live in rented accommodation, possibly not paid a very high salary and you don?t have lots of very valuable assets. Then bankruptcy is a drastic way to get out of debt. The alternative solutions are a debt consolidation loan, an individual voluntary arrangements or IVA. Both an IVA and a Bankruptcy are considered as insolvencies by creditors and your credit rating will be affected for the next 6 years.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!
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10:17:44 am on May 4, 2009 |
The news so far is that some Estate Agents have indicated that the property market looks to be stabilising. The average value of a UK home has fallen by 17.7% during the last year from ?194,953 to ?160,327 according to the Halifax. This means that the average house has lost ?30,000 in the last year. The Bank of England?s Monetary Policy Committee has cut their interest rates from 5% in September 2008 to 0.50% last month. A typical Standard Variable Mortgage rate has dropped from 7% in September 2008 to 2.50% this month. Interest rates have never been this low!
It?s a buyers market!
You may be deciding to trade up or trade down the property ladder at the moment. But you need to consider that first house price are depressed at present, homeowners are struggling to sell their homes, estate agents are not selling many properties, the market is erratic to say the least, Mortgage Lenders just don?t have the stomach to lend money and the mortgage market is stagnant. It?s a daunting time to be selling a home or property but a great time to be a buyer ?it?s a buyers market!
The market place is littered with private residential homes, repossessed properties and buy-to-let properties for sale. Properties are up for sale for a multitude of reasons from homeowners desperately trying to downsize to control costs to an influx of repossessed homes. The opportunity to bag a bargain has never been better and the bargaining power is firmly In the hands of the buyer.
If you have sold your home and have a 15% to 40% deposit to put down on a new property then you are in a wonderful negotiating position ? the market is in your favour. It means that you can negotiate strongly for a remarkable deal as you can probably move fast with the purchase and the mortgage lenders will be more willing to lend to you money due to the size of your deposit.
If you?re a first-time buyer and have a deposit of around 10% and enough money to cover stamp duty, solicitors? fees, search fees and other associated fees then you should be in a good position to bag a bargain in the current climate.
I was talking with clients of mine who had decided to sell their three bedroomed home and downsize. Their current home is on the market for ?215,000 and they have a relatively small mortgage of ?35,000. I asked what a smaller home would cost and they said around ?175,000. They intended to keep their ?35,000 mortgage and save the difference of ?40,000 from the sale of their home and the new house purchase.
They told me that their home had been on the market for sale for the last eighteen months. They had seen a few potential buyers who were making very low offers. They asked for my advice and I said that unless they really need the money from the sale of the house they should take their home off the market as the housing market will bounce back in the next five to ten years and it would be better to sell a house in a buoyant market than a stagnant market.
Look for the best mortgage deal
If decide not to move then you should consider remortgaging your home to a better interest rate before interest rates start to rise again. The best mortgage deals around at present are available for anyone looking for a mortgage of less than 85%.
Contributing author Mark Aucamp has been providing Talk Money Blog with regular Money Saving Advice advice and comments. Mark has extensive experience in providing Debt Management, Best Mortgage Advice and solutions. He is recognised as an authority in the field of debt management and mortgage advice. Find out how to clear your credit card debts legally!