Set up a direct debit to avoid late payment fees

Late payment fees are fees that can be imposed on a wide range of debts and bill accounts by creditors and companies who have received a late payment or in some cases have not received a payment from you. In the current climate more and more people are at risk of missing payments or making late payments that could incur fees, which can make finances even more stretched at a time that is already very difficult for many.

A lot of people these days find that a large chunk of their income goes on paying off debts, leaving them financially crippled and unable to handle any charges that are then added to their debts or accounts. One industry expert said: “It’s worrying to see such a high number of people needing to use so much of their income just to service existing debt.”

In order to make sure that you do not incur fees by making late payments and missing payments on debt and bills it can pay to set up a direct debit. In fact, this can help in a number of ways, as it means that you do not have to go to the hassle of making cheque or card payments to individual companies each month, which can be very time consuming. It also means that you won’t have to try and remember who to pay and when to pay them, as the bank will have all of this set up for you. It also means that you are far less likely to miss a payment or make late payments that could result in fees being charged to your account.

One official said: “Setting up a direct debit helps consumers avoid missing payments and forking out significantly more than expected in interest payments and fees.”

Tags: fees, card payments, climate, chunk, large chunk, risk, late payments, individual companies, consumers, industry expert

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Controversy over banks’ tactics to help avoid mortgage arrears

There are many homeowners at present who are just about managing to keep on top of their mortgage repayments each month, with the financial relief coming as a result of the rock bottom base rate, which still stands at just 0.5 percent, where it has been for over two years. However, many of these homeowners could find themselves in serious trouble if the base rate increases and their repayments rise.

Some banks are now taking what is being considered an approach that is proactive by some, but is being hailed obtrusive by others. The bailed out banks Northern Rock and Bradford & Bingley are planning to carry out credit checks on existing mortgage customers to assess their financial situations and will be contacting anyone that they consider to be at risk of defaulting to advise them to cut back on their spending.

Basically, the banks want to inform high risk customers that if the interest rate rises and they fall into arrears they could end up losing their homes, so they need to start cutting back on spending now in order to free up more income. They will be advised to reduce their spending on non-essentials and luxuries such as mobile phones, cable or satellite TV, going out, and spending on treats. There has been a mixed reaction from consumers and officials with regards to this approach.

One bank official said: “Some people won’t cope when interest rates rise, but for others there are remedies. They need to think about what is their most important debt. It is not their credit card or renewing their Sky subscription, or going out for the latest mobile technology. It is their mortgage. We want customers to look at their finances and change their behaviour.”

Tags: Finance, Bingley, luxuries, finances, controversy, arrears, managing

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Posted in: arrears,avoid,Banks,Controversy,mortgage,tactics

People with debt problems could install a water meter to avoid hike in bills

- Monday, 28 February 2011

Brits, including those seeking debt advice, may want to install a water meter in order to save money on their water bills.

Such is the suggestion of Ann Robinson, director of consumer policy at uSwitch.com, who stated that if a home has more bedrooms than people a water meter can be cost-effective and save a household £56 a year.

She made these comments after Ofwat announced that the average water bill will increase by 4.6 per cent to £356 a year in April.

Ms Robinson stated there are other options for consumers, including those living with debt solutions, if a water meter is not suitable for them.

She said: "If a water meter isn't the right choice, consumers should look at where they can make savings.

"Switching energy supplier can save up to £458 a year, while being on the best deal for your home phone, broadband and TV bundle can cut £261 off your household bills."

Dave Rodger, managing director of the Debt Advice Foundation, recently suggested that parents with working children living at home should ask them to contribute to the household costs.
Tue, 01 Mar 2011
Brits currently seeking debt help could save around £300 a year by bundling their broadband, home phone and digital TV into one package, with one provider... Fri, 25 Feb 2011
Parents seeking debt help should ask their children, who are earning a wage, to contribute towards their living costs... Thu, 24 Feb 2011
People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems... Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card...

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Posted in: avoid,bills,could,install,meter,people,problems,Water

Consumers need to be aware of interest rates to help them avoid debt problems

Consumers concerned that they may end up needing a debt solution if they borrow too much should check the interest rates on any credit they obtain.

This advice applies to anyone thinking about taking out a credit card or a loan as the interest rate could help contribute to debt problems in the future.

Richard Sorsky, money advice co-ordinator at the UK Insolvency helpline, stated that many people seeking debt advice have been caught out by interest rates.

He said: "People still don't understand the interest element. Although it's well stated, people are always with the attitude, 'I don't care about the interest rate because I always pay my debt off every month anyway'."

However, this attitude can be dangerous as people may intend to pay off their debts in full each month but an unexpected expense may prevent them from doing so one month, Mr Sorsky added.

According to unbiased.com, Brits will spend the first 45 days 2011 working just to pay off the interest on their debts.
Wed, 23 Feb 2011
Brits concerned about their debt problems, which have been accrued through borrowing on a credit card, may want to consider using a zero per cent balance transfer card... Tue, 22 Feb 2011
Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

Mon, 21 Feb 2011
Consumers living with debt problems may want to sign up for the broadband and phone package that Talk Talk is introducing... Fri, 18 Feb 2011
Couples that are going through financial difficulties and seeking debt advice need to be "open and honest" with one another...

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Posted in: avoid,aware,Consumers,interest,problems,rates

Consumers warned to avoid additional debt in sales

With Christmas Day now over and New Year still to come many people will spend the week in between the two getting some retail therapy in the sales, which have started all across the country both online and on the High Street. The sales, for many people, provide an opportunity to save money on items that they were planning to buy anyway, which can be hugely beneficial, but for many others they simply present an opportunity to make purchases that they normally would not make simply because the price is right.

There are concerns that many people could find themselves getting into huge amounts of debt by spending unnecessarily in the sales, which is then added to the debt that they may have accrued in the run up to Christmas when purchasing gifts and making other festive purchases. Many people buy things in the sales even thought they don’t particularly want or need them simply because the price is lower than it would normally be.

Officials have warned that by February of 2011 consumers in Britain will have £150 million worth of debt on their credit cards simply due to having shopped in the sales. When added to the debt that millions of us have built up in the run up to Christmas, this could amount to a staggering £2.05 billion worth of credit card debt to kick off the New Year according to figures.

One debt counsellor stated: “This year, more than any other, we would appeal to people not to get carried away and to use credit carefully indeed. With rising prices and the threat of one million more redundancies, budgeting for 2011 is going to be difficult for most people in Britain. To think you are on top of your finances by paying off the minimum each month is a fool’s paradise.” 

Tags: run, High Street, credit card, huge amounts, credit card debt, GBP

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Consumers to cut back on Christmas spending to avoid debtConsumers in UK cutting back on spending to try and get rid of card debtExperts Offer Tips for Saving To Avoid DebtWill VAT rise add to debt worries?How To Avoid Debt While Using Credit Cards

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Posted in: additional,avoid,Consumers,sales,warned