Help, I Cant Pay My Debts!
Filed Under Debt Tips
Finding yourself with unmanagable debt is very easy to do. Banks and finance companies advertise agressively for your business, tempting you with loans and credit card deals that almost guaranteeing instant gratification. Buy now, pay later deals are as popular as ever but rarely do they mention the interest rates other than in the fine print. It’s alarmingly common how many people enter into contracts without knowing exactly how much debt they are committing themselves to. Also common are those letters from the banks saying “congratulations, you now qualify for an automatic credit card increase…” as if you had won a competition.Consumer’s are no match these days for multi-million dollar marketing campaigns people to get a credit card and buy the things they want. Be warned though, whilst these offers are tempting, they may ultimately be the cause of financial distress and unmanageable debt.
At Debt Fix, we speak to hundreds of people every week struggling to manage their debts. Nobody plans to have unmanageable debt but it’s an all too common and tragic tale. First, the consumer is seduced buy credit cards, personal loans or that new mobile phone deal and they cant resist themselves. Then the debts accrue, all reaching their credit limits, but everything is fine because the minimum monthly payments are still being made. After this, something unexpected happens like an accident at work, a relationship breakdown or there’s a car accident. The next thing st, “…Help, I can’t pay my debts!…”
When this happens, you have a choice. You can ignore the problem and hope that it goes away or, you can be pro-active and address the problem head on, taking control of the situation. Debt Fix recommends the latter approach as the preferred method of addressing the problem. In previous articles, we’ve written about speaking with creditors and working with them to find a solution.
Depending on the situation, your creditor’s will listen to you and help you make an arrangement to pay off your debt. “Payment Plans” (or paying a set amount of money over a period of time to pay the debt off) are a common way deal with debt. Believe it or not, creditors would prefer to keep the debt “in house” rather than send the debts off to collection agent because it makes commercial sence for them to do so.
Sometimes, payment plans are not possible because the creditor will only accept an amount of money that is beyond your means. In this case, perhaps a debt consolidation plan is the answer.
Debt consolidation is a powerful way to manage bad debt because it collects the debts into one, affordable payment. There are many ways to consolidate bad debt, including personal loan, informal management plans, property refinace and debt agreements. Depending on your situation, you may qualify for a debt consolidation and this may provide the best solution.
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Refinancing debts
Filed Under Loans
Refinancing is becoming a more and more popular way to tap into the existing equity in your home. Equity is the difference between what you owe on your property and the value of the property.
There are several reasons why someone may wish to refinance, including:
1. Rolling all your debts into one payment.
2. Saving money on cheaper interest rate or lower fees.
3. Switch from a fixed to variable rate loan, or vice-versa.
4. Access wealth in your home to use for renovations, holidays, other investments etc.Refinancing can be a useful way to reduce your monthly outgoings by rolling high interest rate credit cards / store cards / personal loans into one single loan with less interest. This way, you only have one debt to service each month and you know exactly how much you are going to pay.
For a lot of people feeling the pressure of debt and paying high interest rates, refinancing is a way to unlock the accumulated wealth in order to relieve the burden of debt.
Everyone’s situation is different and for this reason it’s important to go with a company that’s experienced. Whilst there are a lot of mortgage brokers out there, there are only a few companies that specialise in helping people with serious debt problems refinance their properties to consolidate debts.
Companies like Debt Fix for example, have helped hundreds of people where others have been unable to – simply because they specialise in mortgage refinancing and debt consolidation.
A good example is when Debt Fix spoke with the clients creditor’s and negotiated reduced settlements, then refinanced the client’s property to consolidate the debts under one loan – despite the client receiving eviction papers three weeks before. The client was able to keep the family home and saved literally thousands of dollars in interest payments and fees, not to mention reducing the client’s overall debt position.
Also, a reputable company will always make you aware of all the costs associated with refinancing and make sure there is a benefit to you before proceeding. Exit fees, differed establishment fees, stamp duty, legal and valuation fees are all factors that must be considered and explained.
So if you’re thinking about restructuring your debts into a more manageable format with improved interest and less stress, refinancing may provide the solution you’re looking for.
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Debt Consolidation
Filed Under Debt Management, Debt Tips
Debt control is a challenge for everyone. Having bad debt like credit cards and personal loans is like having a ball and chain around your ankle, preventing you from reaching more important goals.Accumulating bad debt is very easy to do, and things can get out of hand very quickly. The important thing to remember is to address the issue as soon as possible and stay positive. Getting sound, trusted advice is important too, especially if you feel overwhelmed and don’t know where to start.
Before you speak with anyone about regaining control of the situation, it’s important to know exactly what the situation is. For instance, it’s important to know exactly what your income is (wages, Centrelink, child support etc) and what your costs are (accommodation, food and groceries, transport etc). Then you need to know exactly how much you owe and who you owe money to.
Believe it or not, there are many options available for you to consider and Debt Consolidation is just one of those options.
It’s really common for people to have different credit cards from different companies, old phone bills from previous suppliers and personal loans from different credit providers – so no wonder things can get confusing.
Debt Consolidation can be the answer because it collects all your bad debt under one single payment. As an affordable and practical way to handle bad debt, it can save a lot of confusion, time and of course money.
There are many ways to consolidate debts, so it’s important to speak with an expert company that specialises in debt consolidation. In Australia, there are many companies that claim to be experts in debt consolidation, and it can be a minefield. It’s important to ask questions like “If it turns out that you can’t help me, will I have to pay you anything?” because there are some companies that will charge you huge fees for doing nothing.
Debt Companies that spend enormous amounts of money on TV and internet advertising have to get the money from somewhere to pay for that, and more common than not its comes from people that they couldn’t help.
Other companies like Debt Fix for example, have a “No Fix, No Pay” Policy when it comes to debt solutions and Debt Consolidation. So if you’re struggling to regain control of your bad debts and you need to consolidate your debts, make sure you get expert advice from a trusted company.
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