Help to get out of debtWritten by Janet Williams
Debt Help is stepping stone to debt elimination and financial recovery. Debt help analysis guides you to save thousands of dollars in interest charges. Consolidation of your credit card debts and other unsecured bills will allow you to get out of debt as quickly as possible, save money on interest and late fees, stop creditor harassment, save your good credit rating or begin immediately to repair bad credit or negatives on your credit report. In a recent survey it was reported that almost 58% clients vouched for Debt Management Plan as best way to settle their debts. Another 42% client had filed bankruptcy since dropping off a Debt Management Plan or DMP. Debt Management plans can reduce your monthly payments, interest charges, penalties and some times even repayment period. Even if bankruptcy seems like your only solution, it may not be right debt help solution and may cost you for many years to come. The loss of a job, divorce, credit card spending and family medical emergencies among other life style matters can cause negative money issues. Statistics released by administrative office of U.S. Courts show that a total of 388,864 new non-business bankruptcy filing in United States during quarter, ended on September 30, 2004. This included 274,196 chapter 7 filings and 114,454 chapter 13 filings. Most economists consider a ratio of unsecured debt to annual income of 40-50% percent or more, as being a strong indicator to bankruptcy. This is taken as a ‘˜thumb rule’ in most of cases. So in order to protect himself from such crisis one should keep his unsecured debt to annual income ratio lower than 40 to 50%. For example if someone has an annual income of $5000, he should keep his annual debt minimum $2000 to $2500 in order to avoid his bankruptcy. 36% or less: This is a healthy debt load to carry for most people. 37%-42%: Not bad, but starts to restructure your debt now before you get into real trouble. 43%-49%: Financial difficulties are likely to occur unless you take immediate action. 50% or more: Get professional help from debt counselor to aggressively reduce debt.
| | Free consumer advice site launched by credit card industry to protect shoppersWritten by Richard Green
The banking industry has launched its own new website to provide advice for consumers on credit cards. The site www.choosingandusing.com has been set up to help people choose which card is right for them as well as promoting a better understanding of benefits and problems associated with borrowing using credit cards. The site’s aims are to offer unbiased information to help people decide which sort of credit cards best suit their needs, supply advice on managing money for those struggling with repayments or adverse credit, along with details of any help and support that is available, as well as answering basic questions consumers may have about credit cards. The stated goals are to raise consumer awareness of: - The benefits and risks of credit card use
- How credit cards work
- What should be considered before choosing a credit card
- How to compare credit card products
- How credit card companies make their decisions
- What to think about when using a credit card
- What to do if you get into difficulties
Sandra Quinn, Director of communications at APACS, said: “The UK has one of most competitive credit card markets in world with around 1,500 different cards to choose from, so selecting right one can be a time-consuming process.” The site was created by APACS, UK payments association, which represents all of major UK credit card issuers to provide information directed at better education on issues surrounding credit cards to help consumers fully understand their choices, rather than actually comparing specific cards. APACS commented, “The UK cards industry is committed to improving consumer understanding of credit cards to encourage responsible borrowing. This goes hand in hand with our members’ commitment to responsible lending.” The website tries to give types of features which people should look for when choosing a card depending on their usual patterns of spending behaviour, such as, people who regularly clear their balance each month would be best advised that interest rates may be of less importance than whether there is an annual fee or a rewards programme associated with a particular card.
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