Credit Card Debts: Figuring Out the Best Repayment Option

Credit Cards are one of the easiest and quickest ways people get into debt. They have varied interest rates, depending on the credit card you apply and qualify for. Qualifying for a credit card is easy, and the interest rate that you get given on that card is adjusted to reflect your credit score. So, if you have a good credit score you will be able to access a credit card with a lower interest rate. However, if you have a poor credit score you may only be able to access credit cards with a much higher interest rate.

Credit Card Debts
If you are one of those people who have credit card debt, which most people who do not have a zero balance are classed as in debt, then you have a few options, especially when it comes to becoming debt free.

The options that are available to you are listed below. You should be able to find an option which best suits you and your individual requirements. You may be able to become debt free quicker than you may think.

I Have Money to Pay off Debt

If you've got money to pay off your debts you may be in a better position than most other people. So, you need to use this extra money in the best way possible. If you are lucky enough to have some money hidden away somewhere, maybe for a rainy day, then you need to use this to repay some of your credit card debt. If you have multiple credit cards, you need to repay the credit card provider with the most urgent debt attached to them. This could be because you have fallen behind with repayments, or it could simple be the credit card provider that charges the most interest.

This extra money that you think you have could be a mirage. You need to think carefully before committing any extra or spare money you may have to pay towards a credit card debt. If your money is from a savings account, that is great. You can use this money to repay your credit card debt.

However, if you believe you have money spare at the end of each month, you need to double check to see if this money is not tied into any priority debts.

What Are Priority Debts?

Priority debts include repayments on a mortgage, on rent or council tax debts. These priority debts are vital. You must not fall behind with any of these payments. Where you may think you have extra money at the end of the month to repay credit card debt, could be safer being used to ensure that these priority debts are paid.

All other debts are classed as non-priority debts, and this is where your credit card debt is placed. Even though the classification of this debt can seem quite nonchalant, these debts must still be paid off.

I Have No Extra Money to Pay off Debt

This is the position most people find themselves in. They simple do not have the extra or surplus money available to repay their debts, including credit card debt.

Fortunately, there are places which can help with credit card debt and get you back on a good financial path.

Applying For a Debt Management Plan

A Debt Management Plan (DMP) forms part of an informal agreement between yourself and your creditors. Within this arrangement both parties agree upon a repayment plan that helps repay your credit card debt in regular installments.

You may have to speak to a DMP provider, who will work on your behalf to agree and establish this new arrangement. Some DMP providers will charge you for using this service, so it is important that you do some research around these debt management plan providers before you may any financial commitment to them.

Applying For a Debt Consolidation Loan

Some organizations and individuals advise that you should never have to borrow more money to pay off existing debt. To them you must ask “have you ever been in debt before”?

How you make arrangements in repaying your credit card debt is entirely up to you. You must choose an arrangement that works best for you and your own financial situation.

A debt consolidation loan allows you to repay your existing debt with another, larger loan. This larger loan can bring benefits as well. If you choose to consolidate your existing debt with a larger one, then you may receive a lower interest rate. This is because you have taken out one larger debt compared to several smaller debts spread over different credit card providers.

Much like a debt management plan, it is important to consider everything. You should research debt consolidation companies in full to ensure that they are reputable.

Arranging a Debt Arrangement Scheme

You may be able to set up a debt arrangement scheme with your local authority. These programs help those people who are crippled with debt, from credit card, loans, overdrafts and even priority debts.

Come To Agreements Directly With Creditors

Some of you may be lucky enough to be able to write off some of your credit card debt by speaking with your credit card providers directly.

If you have no extra or surplus cash, and can demonstrate this to them, they could agree to pause interest on your credit card or reduce some of what you owe to them. However, they will come at a cost. Your credit card provider may ask you to refrain from using the card for a period of time, or may close your account so you are unable to use the credit card for the duration that your debt is outstanding.


This can be the last point of call for some people, and so it should be. You should never look at declaring yourself bankrupt as a first, second or even third option. Use bankruptcy if there is nowhere else to go and no other solution available to you. Bankruptcy may only be considered if you have a large debt on a credit card or credit cards.

5 Tips for Anyone Struggling to Get a Mortgage

Mortgages are never easy to get, no matter who you are or how good your credit is, because there are no guarantees of approval. While there are certainly things that work in your favor if you’re trying to get approved, that doesn’t mean one lender won’t still find a reason not to give you the mortgage you need to move into your dream home. In this article we’re going to discuss five things you can do to improve your chances of success if you are or have been struggling to get approved.

Sort out your deposit

In the UK, the minimum deposit you can put down on any mortgage is 5pc of the cost of your new home. In every case, the more money you have to put down on a deposit, the better your chances of being approved are. Likewise, the more you put down, the lower your interest rate will be. The less interest you pay, the more money you’ll be saving on the purchase of your home. That savings translates directly into equity. Assuming a home purchase of about £200,000, you’re going to need £10,000 in the bank to show as a deposit. The catch is that your deposit needs to be seasoned – meaning that it has been on deposit for a while. Rather than put in a lump sum and then apply three to six months later, it’s better to deposit it in parts, so that the lender sees you as ‘’saving’ the money – even if it’s a gift from family, or the result of closing out an investment account. Once you meet that 5pc deposit requirement, you can then use government schemes to get equity loans towards your deposit on any new home – sometimes getting as much as 20% equity from the government.

Get a Mortgage

Examine your income and outgoings

Income is another area you’ll need to make sure you’ve got tidy before anyone will approve you for your mortgage. You’ll need to reduce or eliminate almost any extraneous payments for things like credit card bills, car payments, and other things that might make your income look at all stretched. Obviously if you’ve got a great income this won’t be as much of an issue, but if you’re a couple working together, and you’re both earning the average UK income of about £25,000, you’re going to want to look sharp. If you both have car payments and outstanding credit card debts, you’re chances of being approved will drop noticeably. Make sure those items are paid off, or better, have one spouse take on all loans, and completely clear out the loans of the other spouse so that he or she shows no outstanding debts. Just make sure you do that for the spouse with the best credit rating.

Make sure you meet residency requirements

This one is a bit tricky. If you haven’t been a resident of the UK for at least three years, almost no one is going to give you a mortgage. There are a few companies who will consider your application, but you’ll want to search for an independent mortgage adviser  first, who can help you locate lenders that will help you. If you aren’t able to find someone who will lend to you, there are other options, such as seeking a mortgage from a lender based in the country you lived in before moving to the UK. Sometimes they will lend directly to you based on the strength of the UK market and your previous history in the other country. Other times they may have a partnership or arrangement with a lender in the UK that they can use to assist you. If you find that you are still unable to meet the requirement, that’s ok. Just keep saving money so that you have an even larger deposit when you are able to meet the residency requirement.

Fix your credit score

You and your spouse or partner, if you’re married or otherwise attached, will both want to check your financial history with the credit reference agencies. They’ll use these reports to assess your risk and history of repaying previous loan obligations. By checking to see which of you has the best report, you’ll know which one will have the best chance of successfully being approved. In the event you find any mistakes or errors on your report, you’ll want to make sure you get those fixed before applying. Even people with perfect credit can still be turned down, so the less perfect your credit score is, the more likely it is that you’ll be turned down. Just make sure you aren’t ripped off by any of the credit agencies when doing this.

Be prepared if you’re self employed

For those of you who are self-employed, you’ll have more hoops to jump through than the average person. This is because you’ll need to prove your income, which will require showing any prospective lenders your business accounts. You will also have to show them two to three years of tax returns (more is better), and they may even want to see your future business projections. All of this information should be signed off on by your business accountant (this will need to be a chartered accountant). Technically you only need to have the accountant sign off on your business accounts, but by having the accountant sign off on all of your financials you’ll be showing the lender that you’re not flying by the seat of your pants. Having a competent accountant overseeing your business finances goes a long way towards reassuring leery lenders.

By applying the steps above to your unique situation, you can significantly improve your chances of being approved. That approval is quite literally the keys to your new home or flat, and will let you stop paying rent and start paying for your own place. It’s not an easy or simple process, as you’ve no doubt already discovered, but with a little determination and hard work you can make your dream of home ownership come true. Good luck, and remember to thank us in the comments.

Auto Insurance: Tips For Choosing The Right Cover

When it comes to car insurance there is a huge amount of advice and guidance on how to save money. However, the cheapest car insurance deal don’t always offer the best cover. Getting the right cover for you, other drivers and your passengers should be considered of equal importance to cutting costs. Once you have worked out the cover you require, you can then set your mind to searching for the cheapest quotes and negotiating the best deal with insurance companies. Here are some top tips on how to choose the right auto insurance cover for you.

Do you need insurance?

Yes, to drive in this country you must have the mandatory level of coverage. If you are caught driving without the legally required level of cover, you could be subject to a fine, lose your license or have your vehicle impounded. Additionally, if you are sued following a car accident where you damage another person’s property or cause injury or death, you will have to pay the legal costs yourself.

The exact coverage required varies from state to state so you must find out what requirements apply to you. You can do this by contacting your state Insurance Commissioner. Mandatory coverage across the states includes liability insurance. This covers you in incidents mentioned above where you damage someone's property or if someone is hurt or killed. The money goes to the third party, not you or your passengers.
Auto Insurance

If you are new to car insurance, you might find the National Association of Insurance Commissioners guide to auto insurance helpful.

Other coverage

Not all states require drivers to have any more than liability insurance, so again you must find out what the rules are in your state. However, depending on your use of the car, the type of car you own and other important factors, sometimes the minimum coverage required in your state will not be enough. Additional cover includes:
  • Personal injury protection – This covers your and your passengers’ medical expenses following an accident. It also covers loss in income arising from your injuries.
  • Uninsured/Underinsured Motorist Coverage – This covers the costs if you are hit by someone without insurance or minimal coverage.
  • Collision – This covers expenses for fixing damage to your car following an accident.
  • Comprehensive – This covers costs if your car is stolen, or damaged (not because of an accident but by vandalism, theft, fire, flood, etc.).
What is the right coverage for you?

Here are some things you should consider when thinking about optional cover:
  • Do you really need it? A lot of drivers, especially new drivers, will pay for all the optional coverage on a “just in case” basis. This is a fact that pleases insurance companies. Work out exactly what coverage applies to your situation.
  • Minimum coverage will not always be the cheapest. Often you receive a more comprehensive policy for less money.
  • Experts recommended that you should be covered for an amount equal to the total sum of your assets in order to protect them.
  • Your history of driving and how you use your car will also provide you with guidance on what level of coverage you need. If you have a history of accidents or commute to work every day on dangerous roads, then it might be a good idea to make sure you are well covered.
  • Collision and comprehensive policies are not required in any state. However, it is still important to work out whether you should be covered. For example, if your vehicle is in good condition and you may be a safe driver, you probably don’t need collision cover. However, if you are concerned that your car could be stolen, then comprehensive cover should be taken out.
  • Collision and comprehensive policies are worth having in case you want to fix or repair your vehicle after it is damaged by theft or vandalism or involved in an accident. This type of coverage is based on a deductible (the amount you must contribute before the policy kicks in).
  • To ensure your premiums are kept low, choose a collision policy with the highest deductible that you can afford. With this kind of policy, you should fix minor damage to your vehicle using your own money instead of claiming for every problem. The more claims you make, the higher your premiums will be.
  • If you decide collision and comprehensive insurance are right for you, you may wish to find out if the policy covers damage to or theft of the contents of your vehicle. It is a good idea to also check whether the policy covers windscreen damage and loss or theft of keys. Most policies will include this but sometimes they don’t, so it is worth checking.
  • For collision and comprehensive cover, you should also inquire whether they will provide a courtesy car while your vehicle is being repaired.
  • You may only need to purchase the required minimum of personal injury protection. You may already be paying for this type of insurance via your employer, so there is no need to over pay for personal injury protection.
  • In many states, uninsured motorist coverage is not compulsory. However, it is a good policy to invest in. It protects you and your family even if you are walking, cycling or running at the time of the accident. It is estimated that around 16 percent of drivers in America are underinsured, so this type of coverage could bring you some peace of mind.
Auto Insurance

Now, go get that awesome deal!

Work out how much you can afford and are prepared to pay for your car insurance. Use comparison websites to assist you in shopping  for the best deal. Make sure you read the terms and conditions of each result within your budget carefully to make sure it offers the right coverage.

As mentioned in the introduction to this article, there are many resources online that provide guidance on saving money on your car insurance. Do your homework to make sure you are making use of all the money-saving techniques available.

As well as finding a great deal, finding a policy that offers you adequate cover is also important. We hope that you have found this information helpful in your quest to find out more about auto insurance.

Is It Too Late To Save Money On My Heating This Season?

With the rising cost of utility bills, it makes sense that we try to do what we can to keep these low. It is easy to assume that in order to save money you need to do work well in advance of winter, but that is not the case at all.

Money On My Heating

With winter well upon us, many of us are used to having our heating on as much as possible just to keep warm. This can be expensive and this cost is a worry to many people. However, rather than worry about it too much, use this as an excuse to start making your home more energy efficient.

Using Your Heating In The Right Way

As much as we would all like our heating to be on 24/7 we really don't have the funds to do this. Instead, we need to make the most of our heating, so it works as efficiently as possible. For starters you need to make sure that heat cannot escape the rooms you are trying to keep warm. Draught excluders are a life saver for this! It should go without saying, but making sure that doors are closed as much as possible also helps. During the evenings keep curtains closed too. You basically need to do what you can to keep heating trapped inside rooms.

Invest In New Heating Ideas

It is also worth looking at whether there are investments you can make into new equipment which could help. For example, such as installing a ductless heat pump system. These systems require you to spend an amount to buy them, but this can easily be recouped. They'll save you plenty of money on your heating bills, especially if you look at it long-term over a couple of years.

Upgrading Your Home

There are also upgrades to your home that can help. For example if your windows are quite old then it could be time to change these. You really don't want heat escaping through old window frames or double glazing. It is also worth looking at insulating your home. This involves placing a layer of material through the brickwork in your home and the attic. Think of this as like covering your home with a giant blanket, to help keep the heat inside. 

Save Now For The Future

It goes without saying that some of these changes will take time to put into place. This means that you are really looking to save money for the future rather than this season. However, small changes you can make will make a little dent on your heating bill this year. So use your heating more sensibly this season to try and make a difference now. On top of that you need to start investing in changes to save money on your heating bills in the future. The chances are that the cost of heating is only going to carry on rising, so you need to make changes now to help counteract this.

Maintaining a positive ROI with your investment rental property

Investments are a game of gamble. They involve a touch of risk but they can give massive returns. Returns can be huge or short or can also be a loss depending on how pleased is goddess of fortune with the player. They can make or break life. But if invested wisely, they would never lead to losses and always give huge returns. One such investment is the ever rewarding real estate sector.  This type of investment never fails and has been known to give massive returns. Owning an extra property can be super beneficial as they have multiple purposes solved. Several new residential projects are coming up all over India and each is unique and different as they blend several factors to suit the consumers. Here are some reasons as to why one must invest in a rental property and maintain a positive Return On Investment (ROI): -

Regular income factor

Buying a house or investing in a new residential property can be of great returns as they can be given on rent and generate a stable monthly income. The situation will prove win-win as both the parties will get something. The rent givers will have a shelter to rest, the landlord would get income and the estate agent would also get some commission if availed. Even for some unfortunate reasons, one cannot work, then this income will be useful to fulfill expenses and carry on life without any financial burden.
investment rental property

Backup house

The rental investment property would also serve as a backup house in case of some unfortunate happenings or the house going for some redevelopment or renovation. The house will also serve as a guest house in times of festive season or a special occasion at the house such as marriage or birth of a child. It is always safe to know that there is net lying down in case of falling!

Vacation spot or weekend home

The house will also serve as a vacation spot or weekend home. One can forget the daily din and indulge in a blissful life by going to this investment rental property. If it is in a colorful and vibrant city like Jaipur, one should feel blessed as the city has everything from vibrant culture to strong economic growth. Several people are interested in upcoming projects in Jaipur because of its amalgamation of all the zones. Jaipur is the capital of Rajasthan and is a major tourist spot in India along with the likes of Delhi and Agra. Being a tourist spot, even Non - residential Indians are interested in upcoming projects in Jaipur as it will serve dual purpose. One of rental investment and other as a vacation home!

No training or education needed

One is relaxed and chilled when it comes to earning. Even if a person is not so qualified and is not well educated, he or she can get a great monthly income. It will not need any educational knowledge or formal training to earn a higher income and increase the standard of living! Just save, invest smart and earn huge!

Thus, the new residential projects are worth investing as a rental property and to put a cherry on the cake of one’s monthly income! There are several people interested in upcoming projects of Jaipur and rush to invest in one before they get full! Therefore, a positive return on income can be maintained by investing in a rental property. God of wealth will come to a person if he or she works smarter and invests smarter!