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(Financial advisor) A Way to Clear Your Debts, Is this True?

By Musa Aykac

 As money worries are at an all time high and with the credit crunch booming, bringing the possibility of redundancies even higher. People would love to get the chance to eliminate all of there debt in one big swoop.

A recent company 925cards, seem to be getting a lot of press coverage as of late, over a new debt removal service that has hit the market. But can it be true? They claim to be able to eliminate debts from either credit cards or loans, but only if they were taken out before April 2007.

Looking through there company profile, it seems to be run by experts in the financial field. But what I would like to know is if this company are genuine, then it could cause an absolute upset for financial lenders.

With the market already in disarray, another major shakeup will bring the market to its knees, just as the case of the bank charges reversal did. This will put a lot more pressure on the banks.

So what does this new technique actually involve? Well to be honest I do not actually know, it seems to be a new technique that I have never seen performed before.

Did you know that personal debt in the UK alone has rose around 7.3 per cent to 1.41trillion pounds. This debt entails mortgages, credit cards, secured and unsecured loans. This debt has taken a massive rise due to the simple fact that cheap borrowing over the past years, have become a major talk about. You no longer need to be earning a good wage to obtain a loan. Banks will give it out to anyone and that has been the whole cause of the credit crunch dilemma.

So finally I think this new technique will help you if you have a vast amount of debts, but if you are only suffering from a minor debt. Then you should use your own initiative on clearing them. A few ideas you may want to take into account are to:

Firstly organize your credit cards starting with the most minimal amount first. Pay the minimum amounts on all of the rest, but with the lowest balanced credit card, make an additional payment, so that you can clear it quicker avoiding interest rates. Try not to add to your debts, as there is no point in making a huge effort to pay off one debt. If you are just increasing another by, for example, using your credit card or taking out more loans. You should avoid using any credit facilities for as long as you possibly can.

Effectively Write off Debts and Clear Debts

Coping with Credit Card Debts
By Musa Aykac

 As financial instability looms over the whole world, people are getting more conscience and anxious on the spending habits, that they have for so long been living with. People have constantly been spending funds on there credit cards, and now they are struggling to pay them back. What sometimes looks as free money has devastating consequences if you overspend. Here are a few ways in which you can use, to help yourself coping with credit card debts.

First and foremost you should take a seat at your computer and open an excel program. If you have multiple credit cards, then you should take your time to write down each one, and list information such as the card name, the outstanding balance and when the minimum payment is due.

You should then open a separate file and jot down all the sources of your income; you should not ignore even the most minimal amount of income, as this could cover your monthly minimum repayment for your debt.

Next you will have to sit down, either on your own, or if you have a partner sit together and total up your monthly expenses. You should only be spending on necessities to help in clearing your debt, so basically no going out and buying a new car or computer.

If you are still really struggling, then you can approach your creditors to work out a repayment plan that you can realistically afford. Most creditors will understand your situation and help you in any possible way.

Finally when you have got your plan into place, you should explore a variety of different revenue sources. Consider getting yourself another part time job to help with your repayments. You could also visit a boot sale and load off your unnecessary items. If you are living the extravagant life then you should re evaluate your situation? Switch to a smaller more efficient car, if you have the most expensive plasma TV, then you should look at downgrading the size. The same can also be said for other items such as your mobile phone.

If you are in debt with your credit card, the best thing to do is not to panic, calmly re evaluate your circumstances, and decide what is the best call of action to take. Jumping into the deep end will always end badly, and probably end up getting you in more of a mess than you actually were.

Effectively Write off Debts and Clear Debts

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Sunday, September 28th, 2008 at 12:00 pm and is filed under finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.