Is The Present Economic Crisis Actually Getting Better And How This Could Affect Your Debt Situation?
According to the Citizen’s Advice Bureau there is an alarming amount of us seeking their guidance regarding Debt Management.
Their statistics tellus that each day England and Wales generate an extra nine thousand five hundred cases which find their way to them. The CAB also tells us there has been an upsurge of those seeking help with housing and benefit problems. Going on for 8,200 per day need guidance urgently.
These statistics certainly reflects the UK’s economy and how it is still early days as far as things recovering.
We are coming out of a recession but regardless of, lots of us have to face the cold light of day. It is apparent lots of us are still struggling and unable to cope with the ever mounting pressure on our finances and household budget.
Fuel bills are mounting, but wages are not increasing sufficiently and it’s that time of year again for the council tax, rent and/or mortgages to go up.
And don’t forget we have had quite a chilly winter, the coldest for a long time. Those winter bills need to be paid and something tells us they won’t be cheap!
The apprehension is, whilst there are better days ahead, we don’t fall into the temptation to borrow even more to tide us over. Credit Card Debt, remortgaging the family home or getting a further loan from the bank are all ways that will postpone those better days to come.
We may think this is the best way as far as having a Debt Management plan is concerned and in some cases it could be an option. But before we plunge into more debt we may want to contemplate the alternatives.
Credit cards are not all bad. Look for credit card transfers that have a 0% interest rate for a set period of time. Try to budget accordingly so you pay it off before interest is charged. This will negate the need to pour our important funds into paying off interest and allow us to put that money to better use.
It can take lots of focus, research and budgeting but it is worth all the effort. If we calculate the benefits it soon becomes apparent how we can improve our debt situation.
Take a credit card that has 19.95% APR and say we have a ?1000 on it. Well that is ?199.50 interest we are obligated to pay on top of that debt, or ?16.63 per month.
Now if we were to transfer that Credit Card Debt to a card that has a 0% interest rate for six months then we save ?99.95. That has to be worth bearing in mind.
An extra way we could free up disposable income is by Debt Consolidation. By lowering our monthly outgoings and not having to fret about numerous creditors we become able to manage our finances. Debt Consolidation also cuts the risk of having to take on more debt.
These are a few ways we can improve our own personal situation. It is all very well the claim that things are picking up if we don’t play our part and take responsibility for our own finances.
If we do then we can take advantage of coming out of the recession and not only be observers of it.
