How do you tackle your debt issues?
The vast majority of people in financial trouble across the UK will have mortgage debt, credit card debt, loans outstanding and other overdue payments. While it can be very difficult to know exactly where to start when tackling these problems it is essential that you protect your home first and then look to pay off the higher interest debt.
If you're up-to-date with your mortgage payments and there are no problems for the future then, with mortgage interest rates traditionally relatively cheap compared to loans and credit cards, you should look at paying off high interest debts with any excess funds you may have. Credit card debts are one of the more expensive debts you can have as are unauthorised overdrafts and other similar situations. However it is essential that you do not fall behind with your loan payments and other regular payments, although if you are struggling to repay the pre-agreed figures then you should try to arrange a reduced rate for the short-term at least.
As we have mentioned on numerous occasions, your creditors will appreciate an early indication of potential problems ahead rather than receiving a letter from you claiming that you cannot pay anything towards your debt - which will effectively force their hand and have potentially dire consequences for you. Where possible, payoff the highest interest debt first while ensuring that you retain your home and payoff at least something towards your other debts.
Share this..
Related stories
Car insurance premiums increase by 40%
A report by the AA has confirmed a massive increase in car insurance premiums in the UK over the last 12 months. The report shows that comprehensive car cover has increased in cost by 11.5% over the last 12 months although there has been a massive 57% increase in the cost of premiums for third party, fire and theft arrangements. Younger drivers are bearing the brunt as you might expect although th...
Read MoreUS Federal Reserve dismisses protection for large financials
The US Federal Reserve has today issued a statement suggesting that the days of "too big to fail" institutions are well and truly in the past amid hopes that no one group of companies will ever again hold the worldwide economy to ransom. There is no other sector in world which could attract the same attention as the financial industry, whether in the boom times or the bust times, with billions upo...
Read MoreThe Association of British Insurers changes stance on fundraisings
The ABI (the Association of British insurers) has today revised its guidance to public companies looking to raise funds from shareholders. Under the old guidelines any share issue which increased the existing share capital by over one third would require a long drawnout process resulting in a shareholder vote. However, the ABI has today revised its advice to companies and those increasing their sh...
Read MoreDavid Cameron hints at CGT compromise
The UK government has today hinted at a compromise on the proposed increase in capital gains tax, which is rumoured to be set to rise from 18% to 50%. It is believed that the government will introduce exceptions for entrepreneurs and those nearing retirement as a means of reducing the burden on these two particular areas of society. However, will this be enough for the Conservative rebels? Ther...
Read MoreUK Banks unwilling to lend to businesses
Despite the billions of pounds of UK taxpayers money being pumped into the UK financial system a report by the Bank of England today poured cold water on hopes of an imminent recovery. The report confirms the worst fears of many, that despite significant investment into the money markets the Bank of England's quantitative easing and fiscal stimulus programs are having a limited impact.