Friday, November 6, 2009

top 11 warning signs of debt you are ignoring...

The top 11 warning signs of debt

You may not think you have a debt problem – but then again, you may be in denial!

Here is how to tell...

These days, most of us have some form of debt to deal with – whether it is a loan, a credit card, or an overdraft. But the big question is, at what point does that debt become a serious problem?

If you are just about managing financially, you might not think you have a debt problem.

But if your finances are a bit of a mess and if you, even occasionally, struggle to keep up with your debt payments, this could indicate that your debt is a bigger issue than you realise.

Facing up to these problems can be really tough. And it can seem far easier to simply ignore the problem, shove your bills in a drawer somewhere, and hope it will all go away.

Unfortunately, it does not work like that, and the longer you ignore your debt problem, the worse your debt problem will get.

Get help fast by increasing your income even if you have to take on part time working from home.

So here are the top 11 warning signs that your debts could be spiralling way out of your control.

·     Check your credit report for free

1) You only pay on your credit cards the minimum monthly repayment

Minimum monthly repayments are typically set at ridiculously low levels. This means that if you only manage to pay this amount, it is going to take you a long time to pay off your credit card debt in full. Not only that, but you will end up paying way more in interest before you clear your balance.

This is how the credit card company make their money. And you don’t have to give them this money, if you pay off it all. This way you had the use of their money for a month at no charge.

2) You do not know how much you owe and you do not want to find out

If you have lost track of how much you owe and have no idea how you ended up in debt, you are  overspending. Losing track of what you are spending where is not a good idea, especially if you are spending large amounts. It indicates you have no personal control over your finances.

3) You're borrowing more to pay off your debts

Borrowing more and getting further into debt to meet your other debt payments is a dangerous path to follow – particularly if you're using payday loans, logbook loans or credit card cheques. Equally, if you're taking money out on your credit card just to cover monthly payments on other debts, you could find yourself in serious trouble very soon.

4) You are spending more than you earn every week

If you have no idea what your budget is and you are spending more than you earn each month, or you are not sure whether your salary is covering your expenses, you could be in serious trouble.

Here we can have you earning the extra money working from home within your first week

5) You use your credit card to pay for everyday spending

If you regularly use your credit card to pay for necessities such as food or petrol and cannot afford to clear the balance each month, your debts will continue to build up and put more strain on your finances.

6) You are regularly late paying bills

If you regularly fail to make your bill payments on time, your cheques bounce, or you overspend on your credit card or overdraft, you will incur extra fees and charges from your bank. This will drive you further into debt and could also damage your credit rating.

7) You have no savings

If you are unable to put even a small amount money aside into a savings account each month because your debts are too high, that is a major warning sign. Having said that, it is usually wise to pay off your debts before starting to save - so it is the right strategy, but do not be blasé about it: it is a sign that you are struggling.

8) You find it hard to talk about your situation with your partner or family

If you find it difficult to be honest with your friends and family about your debt problems, or you are lying to them about your spending habits, you could be in denial about your debt.

We will listen to your situation and show you some options to earning the extra money to cover your repayments working from home part time.

9) You have found you have been rejected for credit

This could be because you have too many credit cards – even if you no longer use them – or because you have missed payments in the past. All of this can damage your credit rating.

10) You are now constantly worried about your finances

Recent research from talkaboutdebt.co.uk has revealed that 61% of people in serious debt are not sleeping due to debt stress, and 29% have taken up to six months off work. If your money problems are affecting your working life, leisure time, and how you sleep, it is time to seek help.

11) You have either have lost your source of income or have had your hours cut.

Many times when you lose a job and you have been trying to get another job or even a new career, you hit brick walls even trying to get interviews, and you can give up in despair and then weeks past, even months go by, all the time any saving you had are running out fast and now you don’t know what to do, as this maybe the 1st time you have been in this situation.

Help yourself by getting in touch with us so you can start correcting your debt to a manageable level by working from home on a part time basis.

If any of the situations outlined above apply to you, you are probably feeling concerned. Debt can have a serious impact on your life, but the important thing to remember is that you do not have to deal with it on your own. Simply talking about your financial problems with your friends and family can feel like a huge weight has been lifted off your shoulders. It is a big step in helping you to face up to your debt problem. We are here to guide you.

If you want to get back in control of your finances, the first thing to do is to adopt this goal: Destroy your debt.

Financial products

The following financial products may also help you to fight back against your debt: If you have credit card debt that is earning a hefty rate of interest, transfer that debt to a 0% balance transfer deal right away.

This will give you a bit of breathing space and give you a chance to tackle your debts head on. The current market-leader is the Virgin Money Card which offers a fantastic 16 month interest-free period. And as well as paying off a credit card or store card debt, you can also use this card to transfer money directly into your bank account to pay off an expensive overdraft or settle a debt with cold hard cash.

Just be aware you will have to pay a 4% transfer fee for this money transfer, and for the card balance transfer is just 2.98%. You also need to remember to try to clear the balance within this period of 16 months. If you not, you have to make sure you are ready to transfer the remaining debt to another 0% card – and just remember you will be charged another transfer fee in the region of 3%.

Another way is, you could switch your current account to a bank which offers an interest-free overdraft, and use that to pay off debts or transfer an overdraft. The Alliance & Leicester Premier Direct Account, for example, offers a 0% overdraft for an impressive 12 months!

So if you cannot move all your debts onto interest-free deals, try snowballing – it is a very effective way of tackling your debts. Find out more here. Finally, if you are really desperately and need more money, you would consider taking out a personal loan such as the Alliance & Leicester Personal Loan or the Sainsbury Shopper Finance with Card Loan called Nectar – both of which offer a low rate of 8% APR.

It is also a good idea to get a 0% new purchases credit card for any further spending you need to do. The Tesco Clubcard Credit Card, for example, will give you 12 months interest-free on your spending. What is great about this is that you will be able to focus on your more expensive debts without worrying about racking up any interest on any purchases you make, for a year.

Seek advice now

If you are still feeling completely at a loss as to how you are going to tackle your debts, independent debt advisory free service contact for such as Citizens Advice in UK, Citizens Advice in Ireland National Debtline, the Consumer Credit Counselling Service, Payplan and Advice UK. If you live in Northern Ireland contact your nearest Citizens Advice Bureau or get self-help advice and information here. ... Home - Citizens Advice Bureau

 

These charities will be able to provide guidance on a range of options to help you sort out your debt problems, and you will not have to pay anything for this advice. But whatever you do, do not bury your head in the sand and think your debt problem will go away by itself. Because it won’t go away on it’s own We will also send you out a FREE book on earning the extra income you need now working from home part time.

There are people out there who can help you and the sooner you start to face your debts, the easier it will be to get yourself out of debt. So do not give up on fixing your debt!

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