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Debt problems come in all shapes and sizes from the occasional cash flow crisis to the full on, out of control, debt nightmare that requires professional debt advice.

For Australians experiencing short term debt problems a number of easy steps are open to them.

1 One of the simplest and best debt advice tips is drawing up a budget and sticking to it so that it’s easy to see what money is coming in and what’s heading out.

2 Most consumers’ wallets contain credit and store cards that they have had for some years. As consumers get older their credit score often improves with age, meaning they could be eligible for cheaper credit cards and could save money if they switched lender. It is possible to switch away hundreds of dollars of credit card interest this way.

3 Getting a list of standing orders and direct debits from your bank is a good way of spotting non-essential outgoings that could be put to better use.

4 Interest free loan and buy now pay later deals are often expensive and designed to part consumers from their hard earned cash. It is best to avoid these deals, and only buy what you can pay in cash for.

5 Pay more than the minimum monthly payments on all credit cards, otherwise you will be paying more than you need to in interest payments.

6 If you have a home loan, think about refinancing. If you do your sums carefully you could save money on an introductory cheap rate.

For consumers who are facing more than short term debt problems a number of alternative steps are available.

7 Think about consolidating all credit and store card debt into one loan. Average loan rates are significantly less than those for average credit and store cards. Applying for two smaller loans, rather than one large one, can make it easier to get your loan accepted.

8 Don’t extend any loan for more than 3 or 4 years, doing so can make the total cost of the loan much more expensive, for just small monthly savings.

9 Consumers with consumer credit insurance should consider cancelling it, as it not good value for money. It was highlighted as a ‘junk insurance’ by the Australian Consumer’s Association. CCI adds a considerable amount to the monthly cost of credit, and it won’t give any advantage to a credit application.

10 Consumers with a mortgage could think about re-mortgaging and consolidate their credit or store card debts into their mortgage, at a lower rate of interest.

11 Consumers struggling with their debt need to prioritise their monthly payments, to ensure that the essentials are paid first. Failure to pay the mortgage, secured loan or rent can lead to homelessness, so it’s always important to pay these first. Don’t pay the lender that shouts the loudest first.

12 There are government funded independent financial counsellors in all parts of Australia. They can give consumers free expert debt advice. Consumers who need to deal with their creditors to reduce their payments can get help with an Informal Arrangement through their local free financial counsellor.

13 If a consumer’s debt problems have become a real horror story, there are a number of options to relieve the stress and burden and achieve a fresh start.

14 Bankruptcy is an option for those who cannot see any way of repaying their debts. For $400 it wipes the slate clean. Creditors are no longer able to pursue a customer who has been declared bankrupt, and the consumer will be discharged after three years.

The downside of bankruptcy is that it remains on a consumer’s credit file for seven years. Their assets, which could include their home, will be sold off by a Registered Trustee or the Insolvency and Trustee Service. A contribution is taken from bankrupts who earn over a certain level, currently around $40,000, to pay their creditors.

15 An alternative to formal bankruptcy is a Debt Agreement, targeted at people on low incomes with few assets. This can reduce the amount consumers owe to their creditors by agreeing a compromise deal. Debt Agreements tend to be used by consumers struggling with their credit cards or loan payments, and who earn less than $58,000 after tax. These can be administered by Registered Trustees, ITSA or a third party. Service fees can be around 20%. As long as 75% of creditors agree, a formal Debt Agreement is binding on creditors.

16 A more expensive alternative to a Debt Agreement is a Personal Insolvency Agreement. These are open to more consumers, but can be more expensive because they can only be administered by a Registered Trustee or ITSA. Both Debt Agreements and Personal Insolvency Agreements appear on credit reports for 7 years.

17 For more debt advice information, check out the debt advice published by the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission entitled: “Dealing with debt: Your rights and responsibilities.”

Description: Many more Australians are in need of good debt advice since the onset of the credit crunch. This article contains top tips for people facing a cashflow crisis to those in need of hitting the financial reset button.

In the age of technology, credit card is like an electronic money machine which facilitates you to meet your demands without paying the bills instantly. Taking the advantage, you have shopped or accumulated the debts to an extent that you now cannot afford to repay the sum instantly and so looking for a way out. Lenders in the market are ready to offer credit card debts in the easiest way but against high rate of interest. And if you find that paying a higher rate of interest can affect your monthly budget, thus in such circumstances considering credit card debt consolidation advice is the only viable solutions.

Advice is necessary for carrying out a work in a proper and rational way and so to dissolve the debts in the easiest way seeking the advice of Credit Card Debt Consolidation advice is indeed a wise decision. The policies of credit card debt consolidation advice works and provides services related to debts. Obtaining a loan or finance becomes much easier with the assistance of credit card debt consolidation advice as they convince the lenders of your repayments which you might fail in doling so. Any credit debtor can approach the credit card debt consolidation advice without any hesitation. Subscribing the credit card debt consolidation advice will help you to dissolve the numerous debts in a single loan, and will deduct or if possible nullify your debts in the easiest way. To your provision you can also find lenders who offer loans to consolidate the debts by paying reasonable and low rate of interest.

The services of credit card debt consolidation advice are not restricted to credit card debts but also prop to tackle the unforeseen financial issues which you are not prepared. If you are looking for such solutions without any delay then use the online application provided. The online process is made available for all and round the clock without discriminating financial grounds. Instead of visiting lenders for collecting information concerning credit card debt consolidation, you can approach by sitting at home. So, it has been providing it distributing its services in a positive way and if you want to end the irritating phone calls then considering credit card debt consolidation advice is the best way.

Credit card has made the shopping practice much easier contrasted to earlier decades. But with the frequent application of credit card, unknowingly you have assimilated a huge amount of debts and to get rescued from such circumstances, you find the suggestions not up to mark. But considering the credit card debt consolidation advice will not let you down and will settle the mishap befall on you with rational guidance.

Credit Card Debt Consolidation Advice specifically concentrates on consolidating the debts in a worry free manner and lenient way. The credit card debt consolidation advice is practical and rewarding to dissolve multiple or single debts, as it is provocative so recommendations are imparted after research and speculations. Credit card debt consolidation advice as known by different names viz. credit card debt management, credit card debt consolidation service, credit card debt consolidation loans and such are meant only with the purpose to bestow debtors with reliable advice. In addition, credit card debt consolidation advice can get you lenders who are ready to negotiate the deal at cheap and low rate of interest.

It is observed that persons having bad credit tags usually hesitate to approach for such advice due to the notion of exploitation. Credit card debt consolidation advice is the nexus of a freedom life which has opened its doors for all distinguished credit score holders. The services are highly admired by financial experts and critics as it carry out exercising reasons to stabilize the future unpredictable financial embarrassing condition.

To match the hectic schedule of the people, the procedure of reaching and subscribing the services are provided through online. The online is the new trend of applying credit card debt consolidation advice because it is faster and simpler, following less documentation process and effort saving. Within seconds, debtors can collect information of various lenders and can consolidate the irritating debts without being delay. Thus, in the conclusion it will not be wrong to remark credit card debt consolidation advice as the establishment of a debt free life.

It’s good practice to shop around when looking for a credit card. Going for the first one that comes your way just because you recognise the name can be a costly mistake. There are also plenty of facilities available online that offer a comparison of all the cards currently available. With such a vast amount of financial information available freely on the internet, there’s really no excuse for being ill informed when it comes to your finances.

If you’re a new owner of a credit card then here are a few things that are worth remembering:

Avoid using credit cards at ATM machines unless you really have no other choice. Each time you use your card you will be charged a percentage of the cash that you withdraw. Overtime this can prove to be very expensive.

Be organised with your finances and make sure that you pay at least the minimum payment each month and on time. You may incur a late charge if you miss the pay by date, which can be as much as £30. This practice is now considered illegal and it’s possible to reclaim these fees from your bank or credit card company.

Take care of your credit cards when in restaurants or other places where your card is taken away to be processed. There have numerous reports of unscrupulous workers swiping the details from credit cards when they are out of sight of the card holders.

Carefully check your monthly incoming and outgoings of your account against what your minimum card re-payments will be. Avoid financial difficulties by avoiding taking on more than you can afford.

If you do find yourself getting into debt, then try to transfer your current balance to another credit card that has 0% balance transfer. This will help save you money and hopefully reduce some of your financial stress. Avoid temptation by destroying your card once the debt has been transferred to the 0% credit card.

John Wilson, researcher at the University of St. Andrews’, claims that one in eight adults are financially excluded. Speaking in London, a few days ago, he said that those without access to bank accounts are often on low-income, and that without a credit history report may struggle to apply for a cheap personal loan.

Mr. Wilson said: “The resultant low household income forces many into the arms of loan sharks and other predatory lenders who charge ludicrous levels of interest, trapping the borrower in a cycle of dependency.”

Though the percentage of financially excluded people in Britain is not the highest in the world, Mr. Wilson added: “We cannot afford to be blasé about these figures and dismiss those outside our cosy world of internet banking, multiple credit cards and interest-free loans as work-shy or financially illiterate.”

He further added that offering more advice on secured personal loan and debt management will “allow them to become more financially capable”.

According to the Legal Services Research Centre’s latest findings, some 3.7 million consumers experience serious financial difficulties, and most of them do not know the location of solicitors or debt advice centres for guidance on personal loans, mortgages and savings.

Who needs debt advice? According to the PricewaterhouseCoopers (PwC) Credit Confidence survey, 27% of UK ‘credit customers’ are concerned about their ability to repay debts in the future. 16% are already struggling to repay their current debts – but ‘relatively few’ are willing to cut down on their everyday expenditure, or consolidate or restructure their debts.

PwC’s ‘Precious Plastic 2009 – Consumer credit in the UK’, the firm’s annual commentary on the consumer credit market, looks at how the UK consumer finance market is being affected by the credit crunch, the problems in the banking sector and the downturn in the global economy.

Among many other subjects, the report looks at the UK’s dependency on unsecured borrowing, and the growing trend of using bank overdrafts ‘to bridge the gap between living expenses and income’.

It adds that this is ’set alongside an apparent reluctance among many UK households to either moderate their spending habits or restructure existing debt to make it more affordable’.

”Many people who really need debt advice may be unlikely to ask for it,” said a spokesperson for Debt Advisers Direct. “When someone contacts a debt adviser, they’ve effectively taken the first step – they’ve realised they have a debt problem. Of course, the sooner they do this, the easier it is (in general) for them to get the debt help they need to sort their financial problems out.

”If someone contacts a debt adviser when their debts are just starting to get out of hand, they may find it’s relatively simple to regain control. They might need to make a few sacrifices, cut back on spending, miss out on a holiday, etc. On the other hand, people who wait until they’re on the threshold of financial disaster may find they have very few options left.

”The important thing is to approach a professional debt adviser who understands the ‘ins and outs’ of debt: everything from the different kinds of debt that exist (and the different rights and responsibilities that go with them) to the types of legal action that a borrower can face if they fail to repay their debts as agreed.

”At the same time, a professional debt adviser should be able to advise on the various debt solutions that can offer people a way to pay back their debts at an affordable rate.”

As the PwC report states: ‘Individuals in financial difficulty and facing possible bankruptcy need to obtain the best possible advice on the increasingly wide variety of options available to them such as IVAs [Individual Voluntary Arrangements] and DMPs [Debt Management Plans], taking in the threat of charging orders along the way.’

”Of course,” the Debt Advisers Direct spokesperson concluded, “in today’s rapidly changing economic climate, it’s difficult to know to what extent credit (and therefore debt solutions such as debt consolidation / remortgaging) will be available in the future. Yet, as ‘Precious Plastic’ points out, it seems UK consumers ’still do not fully understand the probable long-term impact of the market turmoil’ – only 21% of the respondents in the Credit Confidence survey seemed worried about the future availability of credit.”

Personal debt is not only a very common problem in Western countries; it is a very difficult problem to prevent, or overcome, at an individual level. It is, indeed, very personal. For that reason, many people may want to keep quiet about it, and maybe not even tell close family that there is, or is about to be, a money problem. They would probably benefit from some help, but who do they go to for debt advice?

Prior to actually receiving debt advice, most people will go through three phases: Firstly, acceptance that there is a debt problem; Secondly, deciding whether to seek advice from a third party about the problem; and Thirdly finding out where to get advice and then seeking it.

Acceptance of a Debt Problem

Personal debt is something that many people may not even be aware of as a problem, even when it is. They may be in a revolving debt situation, whereby they keep borrowing more to make repayments on existing loans and credit card debts. As each facility reaches its maximum, they may seek another credit card, to add another creditor to their revolving debt cycle. Eventually, the debt roundabout stops, and creditors come after their money. If acceptance of the problem has not be there before, suddenly a person may be forced into acceptance.

Deciding Whether to Seek Debt Advice

Once the debt problem is accepted, or acknowledged, by an individual, they then have to decide if they need to seek advice.

Some people may be aware that they have a problem, and for a variety of reasons, may think that they can get by without any outside advice. They may think they do not need help as they can sort the problem out themselves. It is also quite common for some people to be too ashamed and embarrassed to admit that they have a debt problem, especially if they live in a country where being in debt has a social stigma attached to it, such as the UK. Others may just think that getting debt advice is either too expensive, or that they will be conned out of their money, or both.

Eventually, though, the weight of the debt burden forces most people to consider seeking advice on their debt situation. The pressures from creditors may become so overwhelming that even the most reluctant may seek some sort of expert debt advice or counseling.

Who Can Provide Debt Advice?

The next stage can be as difficult for many people as the earlier two: finding somebody appropriate, trustworthy and knowledgeable, who can be relied on to provide sound financial advice in a way that benefits you, and will help you extricate yourself from the burden of debt.

As with any problem, it is best to share with those close to you; indeed, with debt, they may well be affected anyway, so they should know. While you have been quietly suffering with debt worries and keeping it to yourself, your spouse or close friend may know somebody who can give free and useful advice, as well as share the emotional burden.

Should there be nobody in your close circle who is able to give you useful advice, which is normally the case, then you need to consider your local options.

The local options for debt counseling and advice will depend on where you live. The local laws may vary greatly, and it is important that you consult somebody who is aware of current regulations on consumer debt, and the treatment of debtors by creditors. That way, you may have your worries eased about your creditors coming to your house, and taking your possessions as a way of recovering their money. You will be aware of any legal protection you may have in your country or state, and act accordingly to protect yourself.

For those who live in the UK, there is a free option for debt advice: the Citizen’s Advice Bureau (CAB). The CAB have specially trained people who concentrate mainly on consumer credit counseling work. They will provide the advice you need on your rights, help you assess the debts, and then write to your creditors on your behalf. Having an advisor who will contact your creditors, and deal with them on your behalf, can reduce the personal pressure enormously.

In other countries, options will vary. What can discourage many from seeking advice about their debt problem is a fear that they will be cheated by an unscrupulous counsellor. Debt is an industry that, unfortunately, does attract some who prey on the unfortunate. They may lure customers with claims of being able to clear a bad credit record, when in fact it is not possible to do so. They may tempt people in bad debt with consolidation loans, demand a high up front payment, and then get a high commission on the loan as well.

Such sharks are quite easy to avoid if you shop around for the best counselling services at a reasonable cost. The following tips may help wherever you live:

1. Check with local and central government agencies to see if there are any free debt advice services. If not, ask if there is a licensing system for legitimate advisors, and stick to those.

2. Be wary of outrageous claims to clear your debt, and requests for large upfront payments.

3. If you decide a consolidation loan may help, shop around carefully, and select the lowest interest rate option, with no upfront charges.

Once you have found an advisor, be sure to take their advice, and co-operate in every way you can to allow them to improve your debt situation. It will be worthwhile in the long run.

Need the Best Debt and Credit Advice?

You may be under a great deal of stress right now due to heavy debt or being on the verge of a financial meltdown. Try not to worry yourself too much because there are some great reliable and effective methods of solving your current situation.

Hector Milla Editor of the “Best Credit Counseling Services” website — http://www.BestCreditCounselingServices.com — pointed out;

“…Millions of people who have chosen consumer credit and debt counseling services above any other service cannot be wrong. These people have either resolved their financial problems or are on their way to beating the debt crisis they have been in. When looking for the most effective, honest and reliable agencies you should be able to tell the difference between bad business practice and high quality ethics…”

How to find the best counseling service for me:

Here are some great pointers to finding the best level of service to help you either beat debt or better manage your finances and credit regimes.

• Firstly look out for codes of practice such as the National Foundation for Credit Counseling which protects consumers from businesses that are basically out to rip you off.

• You should look out for fees that are in the region but not too much more than $25 -$30 per month for services, and a one-time set up fee that is around the $50 mark. Anything more than a set up fee of $60 for example would be an over charge and should be avoided.

• A good company will have the above standards and offer you free advice and consultations.

• Better Business Bureau (BBB) registered companies often adhere to good business ethics or risk losing their licenses and reputation, make sure you check the BBB website for more details on your selected agencies.

• You will be on the right track if you use the above guidelines and look out for an agency that offers a varied range of help, from housing and rent advice to bankruptcy filing – you may find such an agency offers help with pre-purchases, preventing foreclosure, and financial education courses.

“…If you do some research yourself on several companies you can better judge who can help you for your particular set of circumstances – remember you could still have a lot of debt written off if you qualify for such a service – if you need advice on credit management and large purchases that will be spread out over a long period of time and how best to manage your money in order to pay up on time, then credit and debt counselors are the service for you…” added H. Milla.

Further information about how to get the most of your credit counseling process by visiting; http://www.BestCreditCounselingServices.com

Having problems on your credit rating can wipe out access to borrowing money from a huge range of lenders.  Most companies that lend larger amounts of money need to be sure that the people they lend it to are likely to pay it back, often over a considerable period of time.  This is why your credit rating matters and your overall credit needs to be pretty good.  However, if you only require a smaller amount of money, and you can pay it back relatively quickly, there are certainly loans that you can access, no matter how bad your credit is.

The main type of loan where your credit report is often of little interest is a payday loan.  These are always for small amounts of money and always for a very short period of time.  The loans are usually just until your next payday, hence the name.  The reason that bad credit does not stop you getting one of these loans is that the loan is for a very short period of time, so the lender is only really interested in knowing that you will have enough money going into your bank account at the end of the loan period to cover what you have borrowed.

For this reason, the main criteria for being accepted for a payday loan are that you have a job and a bank account.  While some companies still want to do a credit check, there are plenty who either will not check your rating, or who will be very flexible about any problems with your rating.  Payday loan companies often used to require you to fax through various proofs of employment, etc, but with certain online companies you can now go through an extremely fast, entirely online application process, and have the money in your account the same day as you apply.

Payday loan companies will often require that you have a debit card or that you set up a direct debit with them to pay back the money borrowed.  If you do take out one of these short term cash advance loans, it is very important to pay the full amount back exactly on time.  The fees charged are reasonable when you look at them as a flat fee for a service, but when you compare them in terms of annual percentage rate with other types of borrowing, the interest rates are extremely high.  So if you didn’t pay the loan back on time and continued that debt for a longer period, the interest charges would soon mount up.  Some people who have failed to repay a payday loan have ended up owing much more in interest than the amount they borrowed in the first place.

It is therefore important to understand what payday loans are and when you should use them.  They are not designed to tackle ongoing debt problems, and if they are used in this way, it is almost inevitable that you will end up with bigger problems.  They are for dealing with one-off, unforeseen bills or expenses, and tiding you over until your next payday.  If you need to borrow money for longer, or require it to pay off other existing debts, then payday loans are not the answer.

The fact that such loans can lead to high interest charges if not used properly, does attract some lenders who are less than scrupulous and who add ridiculous penalty charges onto any late payments, making it very difficult to ever pay the loans off.  For this reason you need to take great care when choosing a company to borrow from.  Check that they are reputable and make sure you know what the terms and conditions are for any late payment interest.  It is also worth getting quotes from more than one to compare rates.