A Chase Saunders Case Study

I owed £60k on four loans and 11 cards, but paid it all off and am now debt-free. Here’s how you can sort your debt problems.

An easy to follow plan could help many relieve the burden of debt and high interest payments.

Britain has become a country of debt addicts, with many people relying on credit just to make ends meet. According to the latest figures from the Bank of England, we owed over £1,000 billion to mortgage companies. Thus, thanks to increasing house prices, mortgage debt has grown by £450 billion in the past 5 years.

Over the same period of time, unsecured credit (personal loans, credit cards, store cards overdrafts etc) has grown from £132 billion to £192 billion. This means that unsecured debt has increased by £1 billion a month since May 2001, and now amounts to almost £8,000 per house!

Personal debt is at an all-time high and it is no surprise that millions of borrowers are struggling to keep up with their monthly repayments.

I know exactly how they feel, because I was in the same situation, when I found myself owing almost £60,000, thanks to four personal loans (including a debt consolidation loan !) and eleven credit cards, most of which were maxed out!

Here are a couple of tips to handle debts:

Tip 1 – Budgeting

The first aspect you must tackle is your household budget. Househould financial mismanagement is very often the main cause of debt problems.

The first thing that you should do is list all of your priority expenses. These are the essential bills which you must pay every month.

These include:

• Rent or mortgage (you need to keep a roof over your head)

• Council Tax (non-payment could lead to imprisonment)

• Utilities (gas, electric, telephone and water)

• Food (you need to eat!)

• TV Licence

• Hire purchase (for example, car payments)

• Child Support

• Secured Loans (your home could be at risk for non payment)

• Travel costs

• Clothing

• Fines, ccjs etc

Once all of these costs have been met you will be left with your disposable income. This is the amount you have to pay your creditors. If you don’t have enough to pay your creditors this is a warning sign that things are getting out of hand.

Tip – 2: Prioritise debts

Almost everyone underestimates just how much money they owe. Your need to stop ignoring the problem hoping it will somehow magically disappear. Get all of your statements etc together and make a list of all the debts.

Don’t list the debts in order of the amount owed. What you need to do is list them from the highest interest rate to the lowest, because it’s better to pay off your most expensive debts first. Store cards are usually the highest, because most charge rates of at least 26% APR. At this point you should destroy your credit and store cards. With better budgeting you should no longer have to rely on them and doing so will only increase your level of debt.

After you have listed your income and expenditure, make an honest assessment of your situation. If you don’t have enough to pay the creditors or don’t know where to begin, get professional help from a debt consolidation service, such as Chase Saunders. They will draw up a debt-management plan for you and will negotiate with your creditors on your behalf.

If you have a surplus of cash after all of your payments then you have several options:

• You could make the minimum monthly payments on your debts while allocating all of your spare cash at your most expensive debt (the highest interest) until it’s gone. Then tackle the next most expensive debt and so on, until all of the debts are paid in full. This is known as ‘snowballing’, because the rate at which you repay your debts snowballs as your debts reduce.

• If you have any savings, use as much as you can spare to pay off your most expensive debts. After all, there’s no point earning after-tax savings interest of 4% a year when you’re paying 30% on your store card!

• In order reduce your interest bill and save time, you could consolidate your existing debts with a low-rate debt consolidation loan (or transfer to a 0% card – but read the terms and conditions carefully because one late payment could void the low rate). However, you should only consider this if you are certain you wont be tempted to use your cards again! Many people who take out consolidation loans go on to build up more debts again.

If none of these options are open to you it may be worthwile considering a more formal approach such as an Individual Voluntary Arrangement (IVA). This is legally binding contract that can have up to 75% of your debts written off and is a viable alternative to bankruptcy.

Most people who have bad credit will be faced with the choice of a credit card that will need to be secured though. This means that a certain amount of money will need to be placed into an account. That amount will be your credit limit that you can spend on the card. You will still need to make monthly payments in order to pay off what you’ve spent on the card too.

See you will need to pay in order to open up an account. Not only will they require in many cases $ 150 to be placed on that account. But you will need to see if they have a processing fee they will charge you also. Which could be another $ 150 even, that’s why you need to read all the print on these offers.

In order to get one of these secured credit cards for bad credit, both of those amounts will be withdrawn from your bank account.

You will need to ensure that all of it is in there, or you will have an overdraft fee charged by your bank.

These offers will appear on your email, in the mail, and you can even see them advertised on TV at times. So how will you know which credit will be best for you when you have bad credit? It’s all a matter of reading the full offer, and that includes all of the fine print too.

Also many times when a secured credit card offer comes to you, the interest rate may look excellent. And anyone who’s faced bad credit knows that interest rates are normally very high for you. But read that fine print again, because it may go up after a bit, and you will be stuck again, paying maybe even as much as 10% more.

But just because there may be a few places that will seemingly sneak a few changes in on you, it doesn’t mean you shouldn’t consider these cards. They are a great way in which you can reestablish credit, but make sure that you pay off the full sum of each payment. Contrary to popular belief you will not build more credit by making payments.

Also check to see if you have annual fees that will be taken from the account, and how much they will be. See in most cases these cards will have you place a certain amount of money on the card, but they will also charge you a processing fee. Which can add up to a lot of money and it will be taken from your bank account. You need to make sure you have the money to cover both of those amounts.

Finally, you will indeed be able to use this as a credit card, just make sure you use it wisely. After all it could have been credit cards that got you to have bad credit in the past. Use these secured cards wisely and get better credit again.

Your credit rating as assessed by the credit bureaus is essentially an estimation of your financial health and responsibility. The exact formula for credit score is not known, but it takes into consideration your current personal finance situation along with your credit history with lenders. Falling behind on payments, seizures, foreclosures, as well as too many credit lines available negatively impact your credit rating. In your efforts to build credit after these financial mistakes one must address reestablish your responsible history and financial health.

Prepaid credit cards build credit by extending a credit line to otherwise high risk people.

They offer you a second chance to establish a responsible payment history with the credit reporting bureaus. By borrowing money again and meeting your payments on time, showing that you are proving that you have been able to get your finances and money management back on track towards success.

These prepaid credit cards build credit by providing you a second chance to borrow and show responsibility. Emergencies happen, and financial mistakes are a part of life, but these prepaid credit cards are willing to approve your new credit line with money as collateral and are an important part of building your credit back to health. Pre-paid credit cards for people with bad credit specialize in services that help improve your credit score, such as monthly credit bureau reporting so that they are aware of your improved situation.

If used responsibly prepaid credit cards build credit over time, it does not happen overnight, but the process is important. These cards provide you an opportunity to catch your breath and get you through your financial emergency, then to rebuild. Borrow responsibility and have your prepaid credit card work for you to meet your credit score goals. With sound financial principles and persistence you will be back on track quicker than you might think.

Signature Loans : A Signature Loan is a short-term loan, which is offered on a one to two-week basis and generally ranges between $ 100 and $ 1,000 where the collateral for the loan is your next paycheck. The purpose of a Signature Loan is to help cover emergency expenses, avoid overdraft fees, or to tide you over until your next payday.

It is easy to qualify for a signature loan.  Unlike a payday loan,  NO checking account is required.

Currently employed
Current Utah Resident
Utah Drivers License & Social Security number

Note:

Signature loans typically carry a much higher interest rate than Title loans. It is more cost effective for you to seek a title loan instead of a Signature loan where possible!

How the Signature Loan Process Works

Getting a Signature loan is easy! We have streamlined the process to ensure that your Signature loan experience is quick and enjoyable. The entire process includes only three easy steps and you can have money in your hands as fast as today! It’s easy to qualify for a Signature loan. 

STEP ONE – Fill out Application

In just a few minutes you will have the information completed so that we can make a decision on how much we can lend you today. Don’t worry about your past credit. We understand and offer Signature loans to people with bad credit every day. 

STEP TWO – EASY PAPERWORK

The required paperwork is supplied by us to you. Nothing hard–only simple things like a copy of your drivers license. The list is short and you can finish this step in under 15 minutes. Just bring or fax us what we need and we’ll get to work immediately for you! 

STEP THREE – RECEIVING YOUR MONEY!

After arriving at one of our convenient locations you will be greeted by a professional Signature loan processor. They will be ready and waiting to help you in finalizing your loan. One of our staff will explain your loan documents, and give you your cash. It all takes only about 15 minutes and then you’re on your way. Its just that easy.

More about :

Utah Money Store have been striving to provide loans to good customers who are honorable to their debts and trust worthy. They try to establish a great relationship with our customers and many use us on a “as need basis”. While most of their are not privileged enough like the Clampetts on the Beverly Hillbillies to have their own personal banker we shouldn’t feel less privileged to have someone on whom Utah Money Store can call when they are in a bind.

Utah Money Store treat each customer with respect. Unlike big corporations our company has a very personable friendly feel to it. They  do their best to say “Yes” to your loan requests.

Give Utah Money Store a try, you won’t be disappointed.

Visit Utah Money Store

Before you get a loan shop around for interest rates. You will be surprised at the difference in rates. Theirs will be the lowest of course. But if by chance you find someone lower they will beat any of Utah Money Store competitors rates GUARANTEED!

You will be so happy with what they have to offer. Utah Money Store treat you like no other company can because of their commitment to their customers.

There are different types of financial needs of some moved while others do not can be moved, maybe. If you are against such financial need that can not be postponed further, and you need to have cash immediately ask for a quick loan, without hesitation, are the right choice for your instant needs. The financing that you may be used in emergencies such as hospitals, utility bills, sudden car repairs, telephone bills and credit card fees on these loans. All these requirements are such that the problems to create for you, if those could not soon be filled on the spot.
 
These loans can easily take out taxes and charges, the tension is there for you last many days. These are short term loans that have a fast approval process in the absence of credit check and faxing of documents. Having no time-consuming paperwork, you will easily get finances within a few hours after application on the same day of application. Since there are short term loans payday loan as quickly carry relatively high interest rate. But easily the loan lenders with low interest rate if you look on the Internet, since it’s neck, the competition among the loan lenders neck. Comparing the interest rates and repayment terms you one thing, find that fits your budget. Both are easy to obtain and repay loans with fast, how to get them online in no time and get easily be extended due date, if you find it difficult to find repay the loan on its pre fixed repayment date.
 
To finance quickly get everything you need to do, request form with the required detail is real to fill. Once all details are contained, properly, you will receive approval soon in your e-mail, and soon the sanctioned loan amount is wired into your checking accounton the same day within hours. The loan amount that you will be able to quickly obtain loans in the areas of £ 80 to £ 1500, which will be offered for the duration of 2 to 4 weeks. Since there are short-term loans to make it to most customers that they are not in a position to cover the loan amount be repaid within that period, but it happens extended in a big problem for the customer because they get an alternative due date. Thus the repayment not a big problem.

You might also be interested in Fast Loan

In a few simple steps you can apply for a personal loan and if you have followed the steps correctly and attached all the documentation you will not even be left in suspense as to whether your loan has been approved as you can have the money in as little as two hours after successful application. No one questions will be asked as long as you timorously repay the money on loan.

Everything you need to do to apply can simply be done via phone, fax or email. There is no need for you to be interviewed or even to visit the branch or private company that is offering the loan. One simple requirement is need of you and that is that you are a salary depositing client who is able to pay back the loan within a maximum period of six months. The monthly instalments that need to be paid will depend on the total amount that you borrow as well as the period in which you want to pay the money back.

Cash centre offer fast, hassle free loans to salary depositing clients. Upon submission of the correct documentation you can have your money within two hours. No other company can match their fast and effective service and have the money paid into your account in a shorter period of time. Cash centre are always looking for ways in which to assist their clients with personal loans and promise to help you where they can.

Due to such reasons, loans have become the solutions for all these issues. There are many kinds of loans available in the market. The idea of loans is basically designed for the people who wish to buy several things but can’t afford them. One of these types of loans is gold loan.

In literal sense, gold loans are the loans that are given against gold.

In other words, gold is pledged by the borrower for a particular sum of money.

Gold is a type of investment that individuals make for future purposes. And it is a thing which is available in all the families under normal conditions. When loans are available on gold, it becomes very easy for the borrower to apply for them as he doesn’t need to go for long procedures.

The best thing about gold loans is that they are easily available in the market. That is, all the banks grant these types of loans. Also all kinds of financial institutions give such loans. By taking gold loans, one can maintain liquidity in his finance, without selling off any asset or the gold itself. Gold works as a security for getting a required amount of finance from any bank.

The most attractive part of these loans is that the loan is given for an amount which is around 80% of the value.

Unlike other loans, gold loans have got many benefits. These loans are also termed as ‘ATL’ which means anytime liquidity. The most tedious thing that people feel about taking a loan is that it is a very long process and requires a lot of documentation. But this is not the case with gold loans. There is very less documentation and also the paperwork is very simplified.

The most highlighting thing is that you are not supposed to pay any EMI; you just have to service the interest and benefit from these loans. And also, the loan is given in a very short time. I mean you just have to apply for the loan and you get the money in a few hours. So, if you are a working individual and you require a quick loan, gold loan is the best option for you. It is a very hassle free process.

The first thing that bothers people before taking a loan is the interest rate. This is because one is supposed to pay the asked amount of interest during the repayment. When you apply for Gold loan you should be least bothered about the interest. The rate of interest that is charged on the gold loans is very less. So even if you do not have a long repayment period but a low rate of interest, the option becomes an acceptable one. In comparison to personal loans and other categories of loans, the rate of interest in case of gold loans is the least. This makes gold loans the most preferable and the rational choice of the masses.

Also the funds derived from gold loans can be used for all purposes. There is no usage restriction like that of home loans, education loans, Auto loans etc.

First thing you need to decide is the money that you will need to fulfill your requirements. That means, you require to plan your budget. The personal loan can be accessed in two ways. It can be an accessed as an “Unsecured Loan” or as a “Secured Loan”.

Secured loan is recommended because it provides you the best deal on a sound rate of interest. If you have some valuable asset, you can put it as mortgage and opt for a secured loan.

If you are sure that you can give the loan without any difficulty, it would be sensible to keep some resource as a mortgage and avail a secured personal loan.

Though, if you are going to choose an unsecured loan, interest rate can be higher than a secured loan. This form of personal loan is appropriate for people who do not have anything to keep as a mortgage. The other condition where this kind of loan is the best for you is when you do not need an extraordinarily large amount.

Besides, these two main types of personal loan, there is one more form of personal loan. It is referred to as Short Term Personal Loans. You can take this type of loan from any bank or through financial companies.

Various factors that you should know before you apply to this type of loan include:
A High Interest rate value is associated with Short Term Personal Loans as the repayment period is very short.
The Concerned agency or bank requires collateral from the borrower to lend this type of loan.
This type of loan is best for the individuals who require an amount of money for a shorter period of time.

If you want an immediate processing, you must find the lenders online. Many related websites on the internet offer helpful information regarding the personal loans. 

Plot of land & construction of house thereon
Construction of a house on plot of land already owned
Purchase of a new house/flat
Purchase of old house/flat

Loan doesn’t covers entire expense, it only take cares for 80% of the property. One has to make down payment of 20 % of the property cost. It can be paid back through equated monthly installments. If borrower failed to pay the amount, then remaining amount will be retrieved by dissolving the property. There are numerous options to choose from with alluring schemes, lower interest rates. Plans must be according to the budget of borrower and must suit his/her specific needs and requirements. Before taking any loan, one must be aware of his/her requirements and while applying for a loan these points should be considered:

Which type of home loan is preferable?
Will it be the best scheme that suits budget?
Can any insurance plan cover for an unpaid monthly due?
Is there a fine or penalty or even some reward as well if the whole amount of loan is paid ahead of the due date?

When it comes to home loans, then, there are so many options to choose from. One can select from the following options:

Home purchase loans: These are the simple and basic form of home loans that are used for buying a new home.

Home improvement loans: These loans are sanctioned for the repair works or renovation purposes in an already purchased property.

Home construction loans: These kinds of loans are offered for the construction of a new home on the purchased plot.

Home extension loans: These loans are available for the extension purposes in the existing home.

Home equity loans: These specific types of home loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home with payment of some extra funds.

Land purchase loans: These loans are considered for the purchasing of lands or plots.

Bridge loans: These loans are made for the people who wish to sell the existing home and to purchase another one.

ICICI Bank Home Loan, ING Vysya Home Loan, LIC Housing Finance Home loan and PNB Home Loan are few of the best home loans providers that have attractive and flexible plans affordable rate of interests, EMI and repayment period.