The nation’s economy may be drowning in debt but as it is all of us who are going to have to pay for it we are faced with two big problems.

How to generate sufficient income to pay the increase in taxes and the reduction in benefits which is definitely on its way.

How to service our own debt.

Working as a consultant for a debt advice charity in the UK, it has become glaringly obvious that we are heading into a debt epidemic. The whole nation is drowning in debt. There are going to be more personal bankruptcies and Individual voluntary arrangements during the next 12 months than we have ever witnessed in our lifetime. This of course added to the business bankruptcies which are inevitable, causing further redundancies and more personal debt problems and the cost is incalculable. There is no way a recovery is coming in the foreseeable future.

The only people who are safe are the civil servants. The worse it gets for the rest of us the better it is for the army of bureaucrats. However even they will have to dig deep with the increased tax levels.

Those of you in safe occupations like essential services and teaching should be okay but even you will face a more expensive future. There will be few pay rises and make the most of the low interest rates because it won’t last long.

The commentators really make me laugh. When things are really good they predict doom and gloom and when things are dire, they see “The green shoots of recovery” Ignore them all and try to protect what you have.

If you are having difficulty servicing your debt there are some steps you must take to safeguard you and your family.

1. Pay the most important things first. This may sound obvious but you would be amazed at the way people manage their finances. Mortgage/Rent is priority number one. (You must keep the roof over your head).

2. Secured loans (any debt secured against your property)

3. Local rates/Council tax (depending where in the world you are)

4. Government taxes IE income tax VAT etc. (not paying these can send you to prison)

5. Utilities (gas, electricity, water)

6. TV license (UK)

7. Leave unsecured debt until last, no matter what the creditors chasing you may say. This includes all credit and store cards and personal loans which are not secured on your property.

8. If you have mortgage arrears do speak to your lender immediately. In today’s climate they really will try and help with a solution but you must inform them at the first sign of a problem.

9. Maximize your income. Again it seems obvious but have you explored all possibilities of generating some extra cash (honestly of course).

10. If things look bleak I really do advise talking to a debt advice charity in your local area. Stay away from the commercial operators advertised everywhere. Many charge very high fees.

11. Look in your phone book or on-line but make sure they are a registered charity and check them out.

12. If you feel confident in handling your situation personally, there are some good guides available. Again choose wisely.

I sincerely hope everything turns out well for you. We will come through these dark days we won’t be drowning in debt forever but it may take longer than many believe.

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Consolidating Credit Card Debt Are you having a problem meeting the payments on your credit cards? If so you may be interested in knowing more about consolidating credit card debt. Consolidating debt is not to be taken lightly as borrowing more if you are struggling with payments now is not always the best solution. However When you consolidate, you can take your existing debts and consolidate them into one loan generally over a longer period. This should result in a lower monthly payment overall., with only one payment to worry about instead of several smaller ones. Tidying up your finances can restore some stability and piece of mind for you. You will find that getting things organized in this manner will give you more insight into your actual financial situation and make it easier to deal with. Before considering a consolidation loan do take proper advice, it is a risky strategy to borrow more to pay off existing debt but if lowering your existing payments does the trick then it is a usefull solution. Depending on the amount you owe and your current financial standing you may qualify for an interest free credit card. This would enable you to transfer your existing credit card balances to the new card on an interest free basis. Well worth considering, especiially if you think you could pay off the balance in say 12 – 15 months. For larger amounts spread over a longer period a loan is the answer. You can apply for an unsecured loan (best option if possible) or if you have sufficient equity in a property, then a secured loan may be available. In this case speak with your existing lender first as they may be able to offer you better terms than elsewhere. There are many online resources for researching a new loan but do your sums carefully and if your not sure get some independent financial advice. Before making an application it is well worth getting a copy of your credit file. This will also tell you your credit score. Also if there are any errors on your file (which are not uncommon and can result in applications being declined) you can ask for these to be removed, prior to making your loan application. When it comes to making the application do be truthful about your circumstances. It is almost impossible to lie and not be found out as your details are all on a database somewhere and finance companies and banks invariably use the “Credit Reference Agencies” who hold all your details. Finally, do be sure you can afford the repayments. There is little point in digging a bigger hole for yourself if you can’t and other options may be necessary. Possibly Debt Counseling. For further help visit my main debt sites:  Debt Free – Debt Help Simply happy & Debt Free Video Get Out Of Debt Blog

Debt Consolidation Help – Where Can You Go?
Is it a good idea to Consolidate Debt?

There are certain times in everybody’s life where they may need some help, and having trouble with the amount of debt you have is no exception. It is best to look for help when you need it, instead of avoiding it out of shame and embarrassment. If you look consolidate debt help at an early stage, before things get too out of hand, you will find that you are in a much better position to get things handled. There are places you can go that will give you debt consolidation help, and they are both online and offline. You may want to check out both to get a good idea of what your options are.

You can start by going to you own bank and talking over the situation with someone there. They have easy access to your records and can tell you on the spot what your credit rating looks like, and whether you would qualify for a debt consolidation loan. Basically, you can get all the information that you need in one sitting to determine your next step, and carry that information forward with you if you need to look elsewhere for help. Sometimes your own bank will approve you for a loan faster than another institution, if they can see a past history that is honest and reliable.

If you need to go online to see what your options are, you can look for banking institutions that will give you a free online quote. They will often give you an answer either on the same day as your request, or the next day. Even though it may seem impersonal, online banking, and loan handling, has become quite popular on the Internet. There are different options on the web, and one of them is getting a loan that has a higher interest rate than an offline bank, in exchange for easier approval rates. You may find that you can save thousands of dollars by getting an online debt consolidation loan.

One other place to check out is the debt help agency in your city or town. They are able to work with your creditors to freeze the interest rates on your cards and replace your monthly payments with one smaller monthly payment. This is also a good route to go as you will feel less burdened with only one payment, and you will be able to pay off your debt without constantly paying high interest rates. This debt consolidation help will get you back on your feet, and debt-free before you know it.

If you are interested in leading a simpler life debt free check this out: Simply Living Debt Free

[youtube]http://uk.youtube.com/watch?v=F–Sps6cCOw[/youtube]

We have a good debt help site here:  Debt Free

We will try and give you the best debt advice possible. I will publish articles which will show you how to get out of debt and then remain debt free. I am a financial advisor by profession but of course advice given here is generic and I would urge you to seek professional help at the earliest opportunity.

One of the first things you may need is a copy of your credit file. There are many sources of debt advice available. Some of the debt charities offer very good debt advice and will go to some lengths to help you get out of debt.

There are a good number of professional debt help companies but you need to ask the total cost of their services as some can be very expensive. If you choose a debt help company wisely though, then they are able to lift the burden from your shoulders and show you how to get out of debt completely, in a relatively short time.

Do be aware that using a debt management company and coming to an arrangement with creditors, can damage your credit rating. However, this may be a price worth paying to remove the enormous amount of stress that being in debt can cause.

I have made some recommendations below of companies which as far as can be judged are reputable and fair.

The one thing you can do without when looking for debt free and advice, is further expense. Therefore as far as possible I try to locate debt help services which have no initial cost to you.

One of the most important things to do in your quest to learn how to get out of debt is to obtain a copy of your credit file and your credit score. The company I recommend will provide you with 3 credit reports and 3 credit scores free of charge.

I recommend FreeCreditReports360.com you get 3 credit reports and your credit score and it’s a free service. See below: