Money Minute – Monday 9 March

You want to live out your retirement days as stress free as possible. That means paying off your credit card debt before you retire from your job. Getting rid of credit card debt before retirement means you’ll have less of your retirement money to cover regular living expenses, your mortgage if you still have one, and other things you enjoy. The closer you get to retirement, the more you should think about paying off your credit card balances.

The UK is going through a period of austerity drive the like of which we have rarely seen before. Faced with a national debt of billions the Government is launching cuts in public spending which will result in the loss of thousands of jobs in the public sector, with further unemployment in related businesses in the private sector.

Useful tips how to get out of debt fast. And how to manage your finances.

Getting help with your debts is incredibly important and it’s best if you get advice before things get too bad. There are lots of companies in the United Kingdom which can give you free debt advice and even help you with your finances, but it is important that you choose a company that is right for you – different companies offer different services to their clients. One of the most common debt solutions in the UK at the moment are debt management plans.

Once you begin earning a living and start buying things you may get on the Credit CardMerry-Go-Round. Soon, your purchases begin to exceed your income — you start getting into debt. How much is too much debt? And, if you finally are able to get out of debt — what happens next? How can you avoid getting back on the Credit-Card Merry-Go-Round?

You may not realize it, but carrying debt, especially credit card debt is expensive. You’re not just paying back the amount you’re borrowed. For the convenience of paying back the balance over a period of time instead of all at once, the creditor charges you interest. Credit card interest rates are typically higher than rates on loans, which is why credit cards are more expensive.

Before the introduction of easily available credit facilities managing budget was fairly easy, you’ve either had the money or not. Every large purchase was preceded by adequately long period of time required to save up enough funds. Today, however, consumers are more concerned with available credit rather the balance of savings account. While credit cards and loans seem to be providing a bottomless source or cash the truth is that even those with best credit history sometimes become victims of overspending and are labeled by credit referencing agencies as ‘overcommited’.

One of the main reasons why millions of people land up in a financial crunch is because of credit card debt. Most often we choose to use a credit card unwisely. It is important to understand that these instruments attract the highest interest rates which could prove very costly if you are unable to pay off your credit card bill in time. Once you make payments past the due date you begin to default and end up paying penalties. In addition, it hurts your credit score which is something that you must avoid at all costs.

If you are not sure whether or not your debt has gotten out of control, this article will provide you with some tell-tale signs. If you are experiencing a number of these signs, you will want to quickly make some changes and get help if needed.

What are the best way to solve your debt problems? After considering the alternatives in this article, consider contacting a financial advocate. They may be able to help you more than you think.

Nothing prevents a debt collector from attempting to collect a time-barred debt because the consumer still may owe the money. However, the law bars a debt collector from making a false representation about the legal status of any debt.

Since I live in northern Canada, I do not have the coupons and discounts available that I see in larger centres. I have tried to shop more frugally, scouring the papers for the best deals, running around town to get them only to find out the “TWO” items they brought in (probably Loss-Leaders) are sold out. In the end I wasted half my day and still did not have everything on my list, and gave up with “shopping just because it was on sale.” And you know what? I started to spend less! Here are 10 Tips to get out of Debt & build a Savings Account. Doable suggestions you can follow even with a tight budget & in a tough economy.