Struggling To Pay The Rent?
A report issued by MoneySupermarket this month revealed that one in four people are
using over 40 percent of their income to pay off their debts which is quite a worrying figure.
High rent costs added to a lack of disposable income has lead to many people requiring debt help and advice on how to manage their finances.
Debt levels are increasing as more people are struggling to keep their heads above water, often borrowing from one credit card to pay another or taking out a debt consolidation loan and finding that instead of reducing their debt, theyve added to it and at a higher interest rate!
One useful tool available is the debt calculator which can give you an idea of what income you receive, what is paid to your priority outgoings and what disposable income you have left otherwise known as a budget. A budget is key to ensuring that your finances stay on track.
If you find you dont have enough money left to pay your rent because of making payments to your debts, you need to consider some of the debt solutions available.
1)Debt Consolidation a likely option which could help if you have several debts and you would like to consolidate it into one payment. However, be mindful of the interest rates and the term of the loan. It is likely you will increase your debt (instead of paying it down) and higher loan amounts are usually only available to homeowners via a secured loan which means that your house is at risk should you fail to keep up the repayments.
2)Debt Management helpful if you are struggling with unsecured debt and cannot afford to make your payments. There are many debt help solutions available and debt management is a flexible one. It allows you to consolidate your debts and make one affordable monthly payment into a debt management plan; those payments will then be made to your creditors.
3)IVA appropriate for people with higher debt levels which exceed 15,000. It is a legally binding arrangement between you and your creditors which usually lasts for a five year term. If you are a homeowner and have equity in your property, you may be asked to introduce a sum of money into the IVA in lieu of equity (usually done by remortgaging).
4)Bankruptcy often done as a last resort for those struggling with debt and is usually for people who have no disposable income and no assets.
Above are just a brief overview of the debt advice and solutions available. The list is not comprehensive and there are benefits and downfalls of each solution which would need to be carefully explained to you by a qualified debt advisor.
Your priority bills must come first before you look at your outgoings for your debts. Priority bills mean items such as:
-rent/mortgage
-gas/electric/water
-council tax
-insurances
-car insurance
-food/toiletries
In other words, your priority bills are the items which keep the roof over your head and allow you to have a certain standard of living.
Once you have a budget in place, youll know exactly how much you should set aside for your household items and how much you have left to pay down your debt.
by: Beverley Budsworth
Online Payday Loans Fulfill Your Instant Cash Need Easily Fine Silver Jewelry For Spring @kamarsilver.com Finding A Great Insurance Agent Goal Setting & Strategic Planning Part I by Dr. Mia Y. Merritt Insurance differentials exemption under threat London Piccadilly Hotels - the Great Accommodations Web Design Company Uk Opt For Added Security When Delivering Parcels And also the Award Goes to... See All the Style Highs and Lows from the 78th Annual Academy Awards Acquiring a Kids Gown Suit Online Christmas Countdown: Buying Gifts For Men How To Pick The Best Wedding Gown For Your Body Type Newbie To Build Cash Online With Affiliate Promoting