No-one wants to be in debt, but the reality is that most people will have to borrow money at some point during their lifetime. You cannot underestimate the importance of a sensible loan repayment service that is integrated within a loan facilitator. It is vital to plan your debts in order to avoid costly penalties.
Be Honest
Many people with lots of different debts, including secured and unsecured loans, credit card debt and overdrafts, don’t want to face up to how much they actually owe. However, if you’re honest about this you can start planning a strategy for dealing with it. Telling a trusted friend or family member can also be helpful as it diminishes the sense of secrecy and shame that often surrounds debt. A problem shared really will lighten your load. It can also be a good idea to let your employer know that you are struggling; you don’t need to go into detail to make them aware of your situation.
Pay Priority Debts First
A priority debt has very serious consequences if it isn’t paid off. These include being put in prison, losing your home or losing your utilities. Your mortgage/rent, council tax, child support payments and any magistrates’ fines are examples of priority debts.
What Are My Rights?
You need to know your rights, particularly if a lender is putting pressure on you. A lender shouldn’t ring you at unsociable times, encourage you to pay very high instalments or ask you to sell property.
Avoid Unscrupulous Lenders
Don’t ever borrow from a company that implements rollover loans. Smart Pig is a firm that pledges not to do this. Without a fixed cap on the interest than can be owed, you could end up paying back the worth of your loan many times over. Many lenders will allow you to take out loans even if this is not helpful for your personal situation. An easy way to tell if a lender is unscrupulous is to look at the checks they do before approving a loan. If the answer is ‘not many’, then they will allow you to borrow money without sufficient evidence that you will be able to pay it back. The advertisements of payday lenders may seem convincing, but make sure you read the small print and focus on the interest they will charge you.
Seek Help
If you need help with debts, seek professional advice that doesn’t cost anything. Try the Citizen’s Advice bureau, the National Debtline or the Consumer Credit Counselling Service.