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With the average household debt increasing constantly all over the UK, homeowners everywhere are struggling to keep their increasing monthly payments under control. Without the proper debt management solution, their attempts are frequently accompanied by failure and most of the times lead to a growth of their monthly payment that simply cannot fit in their budget.

The various credit card related debt as well as the other large payments like mortgages, education or automobile loans are getting out of hand, an aspect which reflects in the rising number of people filing for bankruptcy. However, an alternative road to financial security and freedom comprises of corroborating your credit card debt with a secured loan. Let’s find out why.

1. The overall monthly interest paid is reduced
The principal issue and the main generator of credit card debt is the high interest rate in association with the additional charges. In essence, unsecured loans have an innate high interest rate that guarantees your lender he will be able to recuperate at least a part of his investment if you are not able to pay your debt. On the other hand, homeowner loans are secured against equity, which means that the risk you pose for the creditor is lower. Therefore, the interest rates of the loan are substantially reduced.

2. Your income/spending budget can be calculated easier
When you have a plethora of credit cards that have to be paid on different dates and each of them requires minimum monthly payments, your debt can easily spiral out of control. It’s hard enough to stay up to date with the major loans, so adding credit cards into the equation complicates things immensely. However, since a single affordable payment can be easily integrated within your budget easier and it eliminates effectively the need to remember every other single debt you have, you are greatly simplifying your finances.

3. A single creditor to deal with
The more unpaid credit cards you own, the more calls you will receive from the lenders and banks. As your debt grows – and, without the proper solution, it will – you will start to receive more and more calls from the creditors, often at the most inappropriate moments. However, since the secured loan consolidates all debts into a single account and the lender takes charge of handling your finances, you can be certain that your other creditors will no longer trouble you.

4. Enhanced affordability for the monthly payments
Secured loan consolidation doesn’t only imply that the value of the interest is lower. In fact, you can also specify a longer repayment period, which permits you to minimize the monthly payments to a sum that you feel comfortable with. True, the total interest paid is directly proportional to the span of the repayment period, but you will be able to manage your household budget easier.

5. You won’t be tempted to spend more than you should
What every credit card actually represents is a lure for overspending. In other words, how great is it to purchase something you want – not necessarily need – now and pay for it later? Cutting up your credit cards and consolidating the debt with the secured homeowner loan is just the cure you need for that temptation!

Payment Protection Insurance is an insurance typeproposed by lending corporations to individuals to help defend their loan and credit payments in case the individualscannot make the planned payment. PPI is intended to pay the debt if the individualloses his/her job, meets with an accident that prevents from working, or any sort of severe medicalissue. PPI differs from company to company. Like all sorts of insurance, PPI offers range of advantages.

Individuals, who are engrossed in buyingPPI,should go through the terms and conditions before moving forward to signing a PPI agreement.

Payment protection insurance is intended to keep off the debts if you’re unable to work due to some accident or some permanent disability. The PPI Claims would help you pay the regular amount of money to cover your loans and mortgage payments credit and store card payments. The lender company would pay the monthly payments for duration of twelve to twenty four months or until you get fit enough to start working again.

Other benefits of PPI claims are:

The PPI Company provides beneficiaries of payment protection to the customer. This would ease customer’s burden in the tough financial situation with minor extra fee that would be later added in your loan payment amount.

Even if the individuals are working and in good position with the PPI company can qualify easily for PPI. The details of PPI information along with billing statements are mailed to individuals so that can keep track of payments. The service to ask questions about the bills to online customer service is another facility provided by the lending company nowadays.

Most credit card companies and lending companies mail out PPI information with monthly billing statements. They may also offer the service to customer when they call in to make a payment or with questions regarding their bills.

Another facility provides by lending companies is the instant coverage. As soon as the individual agrees with the terms and provides the supporting documents, the PPI insurance is executed immediately. Some of the insurance companies offer waiting period of 4 months. The duration varies from lender to lender.

The money problems of the individual can be eased during the tough job times like during the recession or job uncertainty period or during the times when you could grab another job.

At times you invest all of the money in loans for your dream house or cars with some or almost no savings PPI claims can work leaps and bounds and help you escape the difficult financial circumstances without giving up your house or car dream. The PPI lending companies have come up with various facilities. It is up to you to select the one that suits you the best in the current situation.

More and more credit card users are going in the debt each month and the common reasons are stagnant income, rise in the living cost, and unexpected life events such as the accidents, diseases, and natural calamity etc. These reasons make the survival difficult for the credit card users and they find it really difficult to come out of their debt. It may surprising to hear but it is true that debt relief will become the easiest job for you if take care to follow some important debt relief tips. Concentrate on these 3 important debt relief tips to get freedom from all the debt.

Follow the best debt relief option

There are too many debt relief options available in the market depending on the market situations in the local area. Taking a loan from the financial institutions is the first option that most of debtors try. The debtors can also sell their ownership of house, car, bike or anything else. The item you choose to sell should depend on the total amount of debt that you have to repay. The debtors can also ask for the money from some other sources such as the relatives, friends, and neighbors etc. So you have so many options of debt relief but the big question is that which option should be tried.

To get the answer of this question, the debtors should compare all the options and choose the one that is most suitable according to their requirements. Choose the best option that not only helps to pay the debts but also gives the peace of mind to the debtors.

Pay full debt each month

The credit card providers provide an option to pay the minimum debt this month and pay the rest in the next month. This is a good option of payment for those who do not have the sufficient money to pay their debts this month. Although it is a good option but it can also make the situations worst for the credit card users. The money that you will not pay this month would add to the balance in the next month. This will increase your burden in the next month and it will continue to rise whenever you will fail to pay. So the best option is to try to pay full debt each month and do not let your debt grow like a tree.

Hire a credit counselor

If you think that these 2 tips might not go a long way in giving relief from the loads of debt growing then the next important tip is to hire a credit counselor. The credit counselor will run a credit counseling program to analyze your financial situation and the debt. The credit counselors will also help in getting the concessions from the creditors on the interest rates. So this is how the counselors can be helpful in reducing the debt.

These are the three important tips that will help any debtor to get freedom from the debt.

There’s always at least one time in someone’s life when, with payday more than a week away, they find themselves a little short of cash. Not knowing what to do when it becomes hard to pay your next electricity bill or even for emergencies such as fixing a broken fridge, it can be hard to know who to turn to for help. To some people, it might seem like little more than a last resort, but taking out a fast little loan could make up any shortfall in income.

If you find yourself unable to get a loan or overdraft from your bank, and are worried about waiting for any money to come through, taking a payday loan out might represent your best chance of plugging that momentary gap in your finances. However, if you’ve never taken one out before and want to know what to do if you decide to go with it, what are the do’s and don’ts of payday loans?

One thing you should do is know how much you need. With payday loans, all you need to do is borrow the exact amount needed for whatever expense you have to meet. By doing this, you’re not taking too much and you won’t have to pay as much in interest when the time comes to paying it back in full. Once you’re sure of how much you need, try to borrow that amount: no more, no less.

Next, you should do a little research into how payday loans work. There are many providers such as Wonga.com where you can find out how you can take them out, how long the waiting period is before the money enters your bank account and how to repay them. It’s also worth looking into the level of interest you have to pay on such loans, as finding that out will help you budget for interest payments on top of the money you need to pay back to the lender.

Finally, it pays to shop around when looking for a payday loan. When searching for a payday loans alternative, you’ll want the best deal when it comes to waiting periods, interest rates, repayment windows and, most importantly of all, the amount you can actually borrow. If you find the right deal, then feel free to try and take a loan out with them, and pay it back at a time that suits you.

Not so long ago, ‘debt’ would have been a dirty word for many people. The financial crisis in Britain presently has led to people speaking about it candidly. Many will use an IVA to help extricate themselves from debt.

Debt has long been regarded as a taboo subject and people were decidedly reticent to talk about it. The current financial climate, however, has led to record numbers experiencing debt problems of one form or another. As a result of this, it is no longer considered controversial to discuss our debt problems with our friends and family. Debt management can be a particularly difficult due to spiralling living costs but many are beginning to see an IVA (individual voluntary arrangement) as a viable means of tackling financial arrears. Debt management in the UK is becoming increasingly difficult and the Citizen Advice Bureau views the current situation as ‘worrying’. Many in debt will use an individual voluntary arrangement with licensed insolvency practitioners to tackle their debt arrears.

Why are We in Debt?

There are a number of contributory factors to the current financial crisis that grips the nation. From the credit crunch to spiralling living cost, all are having a profound impact upon consumer’s finances and financial experts predict that insolvencies will hit record levels. One of the primary reasons that debt management is proving so tricky for many consumers across the UK is spiralling living costs. Energy bills, cost of food, petrol prices and all sorts of price hikes are hitting consumers in the wallet and those threatened with insolvency or bankruptcy are turning to an individual voluntary arrangement to help them out of their financial hole. Teresa Perchard of the Citizen Advice Bureau stated, “These latest figures paint a worrying picture, suggesting a significant number of households are struggling to meet their most basic living costs.”

IVA – A problem shared

Part of the problem with debt is the loneliness that is associated with it but many are finding that the increasingly accepting attitude surrounding debt is making it easier to get their finances back on track. Many financial experts believe that, when it comes to debt management, an IVA is an excellent means of tackling debt problems head on. An IVA is a legally binding contract between creditors and those in debt and it allows them to pay back their outstanding arrears at a level that is financially feasible for them. Research conducted by Alliance & Leicester found that people are now more likely to talk about debt issues than they are about sport or celebrities.

IVA – Growing debt concerns

The primary reason that people are seemingly more amenable to discussing debt is the fact that money matters and financial concerns are on the mind of the majority of consumers in the UK. Ewan Edwards of Alliance & Leicester states, “Our survey reveals money matters have a firm place at the forefront of people’s minds at the moment.” With insolvency set to reach record levels, many consumers who are swamped in debt are looking for a financial solution to appease their creditors and increasing numbers are opting for an IVA in order to do this.