Debt consolidation explained
Consolidating credit cards can be a good way to reduce your monthly debt repayments and overall money owed.
Debt consolidation can mean a number of things, and should be only considered in some circumstances. However, i will attempt to outline what this term means and exactly how it can help you in certain financial situations.
Unfortunately, alot of the readers on this blog have experienced debt in their life and for some, debt consolidation is a light at the end of the tunnel. Debt consolidation can actually reduce your overall debt quite dramatically by lowering your monthly payments and shrinking your overall debt repayments.
Say for example you have £2,000 outstanding on a two different credit cards at 17.9% and you pay off £40 per month. On average you would be paying back this debt for over 7 and a half years!(93 months). If you change this to a 12% loan and pay off the credit card in full, you will be paying off the debt for just over 5 and a half year (70 months). Thats a massive 23 months or 920£ you would save by just transferring the debt or ‘consolidating’ this into a more effective and manageable payment. Debt consolidation can also be a good way to exercise good money management as you are working towards sensible ways to reduce your debt and taking positive action to fixing your financial problems.
You may find that credit may be difficult to obtain when you already have outstanding debt, but i would always suggest searching for better interest rates every 6 months to a year on your outstanding debts.
Whilst debt consolidation can be an effective debt management tip, it is imperative that the money from the loan is used in its entirety on the outstanding credit card debt (in the above example). Avoid spending this money at all costs to avoid running yourself into a worse financial situation or even bankruptcy!
As with all posts on this website, this should not be considered financial advice. I am not a financial advisor, just someone who has managed their way through debt and wants to share the experience with you all. If you are worried about your debt or finances in general then i suggest you seek professional financial advice.
Money making tips for January
Car boots are a fun and sociable way to make a few extra pounds. Search your local paper or online for your nearest event
Its been a while since i posted, so i feel compelled due to a bit of a pinch in January! Following the post Christmas spending spree, it is always worth considering a few money making ideas to keep you tied over until payday.
Ive mentioned freelance writing and blogging before, but why not consider surveys and market research? High street companies need to conduct research on their potential customers, so they know what products to sell them/what works etc… Utilise this need and turn it into profit! Based on experience, you can earn upwards of 20-50£ for just an hour or twos work giving feedback on products.
Customer pulse and Saros for example are well known market research companies, backed by the awesome moneysavingexpert.com. Many of these offer ‘focus group’ sessions that pay you on each visit. Have a scout around online for a market research company in your area.
Selling your scrap jewellery and junk - Selling your old jewellery for instance is a simple way to make some money easily. With a deluge of tv based offers for cash for gold, its worth checking online too. Compare different sites to find the best price per oz of gold, as pawn shops can often give very poor prices per oz. It can take some time to do this so be patient and always check the sites credentials first. Also make sure you read all of the small print to ensure you get the best offer for your jewellery and are protected when you send it in.
It may sound a little dated, but boot sales are also a great way to get rid of your old junk and unwanted items. Search your local newspapers for the next meet and take along your unwanted bits and pieces. A great way to clear some space and make a few extra pounds.
While January is often a long month waiting for that pay packet - I hope a few of these suggestions can keep your head above water!
Financial fear of the dentist worse than the drill
It used to be a fear of the dentist that kept us away from the dental chair but today it is more than twice as likely to be the cost of dental care that’s holding us back, according to research from Tesco Bank.
Over a third of us (35%) haven’t visited the dentist in more than 18 months and one in ten hasn’t been for more than five years. Just 13% admit to staying away for fear of the drill. However, for almost a third, it is the high cost of treatment that stops them from visiting the dentist and a further third (34 per cent) have not registered with a local dentist.
The survey, examining our oral hygiene habits, also reveals that a lack of available NHS treatment is causing people to travel further for their dental treatment. So highly-valued is NHS treatment that, on average, a UK adult would travel nine miles to secure a place with an NHS dentist.
These journeys, or “dental miles”, increase to as many as 16 for the people of Aberystwyth or 13 for Geordies.
Prepared to travel the most “dental miles” to register with an NHS dentist:
Rank City Average miles
1. Aberystwyth 16 miles
2. Newcastle 13 miles
3. Swansea 11.5 miles
4. Gloucester 11 miles
5. Aberdeen 11 miles
Head of Tesco Dental Insurance, Jeremy Sutton, commented: “Far from being a nation of ‘dentophobes’, the research actually suggests we are prepared to go the extra mile, or even ten, in order to receive affordable dental care. Dental health should be a major part of everyone’s daily routine and regular check-ups can actually reduce the risk of needing expensive major procedures.”
Making Savings a little easier - Savings Calculator Widget
The web is full of handy gadgets and widgets to use on your website, so its only time i shared this one with you. This savings calculator (from car insurance comparison site Confused.com) is a quick way to track how much you can save over a set period.
Simply put in the amount you wish to save, the period you wish to save over and your current interest rate and click calculate! I’ll be looking to add more widgets like this to the site over time to help with your debt management. Stay posted folks.
Savings Calculator Widget created by Confused.com
Anyone out there with good widget ideas for this site, feel free to post a comment below! Lets start 2011 with good intentions in mind..
