Simple Tips for Prioritising Your Various Debt Repayments

Filed in Debt Leave a comment

Nobody wants to be in debt, but sometimes we find ourselves in a position where we have got ourselves into a lot of debt. It might seem like they are pushing down on our shoulders and that there is no way of seeing the light of day, but there is a way to make things a bit easier. Here are some simple tips for prioritising debt repayments.

Compile a List of Your Debts

The first thing you need to do is make a list of all your debts. This will men gathering up all the paper work for all of your different debts and compiling it into a pile, list or some other way of being able to look at them all at the same time. You will want to see clearly what each debt entails so that you can get a good idea about what you financial position actually looks like.

Work Out Exactly How Much is Owing

With all of your debts, work out exactly how much is owing on each one. This includes looking at the interest, how much you are paying, and what sort of interest it is, so that you have an idea about the variable amounts with each one. What are the monthly payments, and what annual fees does the debt attract?

Order the Debts

Once you have your list, put it into order of which ones have the highest interest rates, penalties and fees. This will give you an idea about which ones you are treading water with, and which ones could possibly be paid off sooner rather than later. Having a good idea about where your financial position is really at, will help you to see the big picture, rather than looking at the forest from within the trees, as all you see is trees.

Consolidate?

Now that you have your list and can exactly what each debt entails, have a look to see which ones you can consolidate. Ask yourself, if there are any of those debts that could save you money if you consolidated them into the one loan? Consolidating can often be a good idea because rather than spending a lot of money paying off the interest and not getting forward, you might be able to just be paying one monthly repayment on a loan that covers all of them.

Work Out How Much More Than the Minimum Would Help You

Rather than continuing to pay the minimum monthly repayment and only ever paying off the interest, it might be a good idea to start paying a little bit more than the minimum each month. If you did pay more than the monthly minimum, how much would you be paying, and how much would it take for you to pay off before it started to be of help to you and your situation?

Author Bio

This article was contributed by Michael Craig on behalf of Dreamloans – a leading car-finance broker based in Adelaide, Australia.

, , , , ,

Larger cash withdrawals receive scrutiny from HSBC

Filed in Banks Leave a comment

HSBC have faced a backlash from some customers who were denied the ability to withdraw large sums of their own money from their bank account without valid explanation and evidence on why they wanted to do this. HSBC stated that this was because of a change in policy but failed to tell this to their customers.

One customer going by the name of Peter went to withdraw £10,000 in cash from HSBC for travelling and to give some to his sons; he called HSBC a day prior to his withdrawal with everything seeming to go ahead as normal. However the following day he was called by his local branch which asked him for booking receipts for the trips he wanted to go on, which Peter did not have; they also asked him to make a bank payment to his sons rather than withdraw cash to pay them. The day after this Peter again called HSBC who then agreed that he could withdraw the full £10,000 following an examination of his account.

Another customer, Stephen Cotton also faced difficulty in withdrawing larger sums of cash, in this case from an instant access savings account. He tried to withdraw £7,000 to pay back his mother on a loan. Stephen Cotton told Money Box: “When we presented them with the withdrawal slip, they declined to give us the money because we could not provide them with a satisfactory explanation for what the money was for. They wanted a letter from the person involved.”

After receiving customer opinions on the matter, HSBC declared that they were going to change the policy: “We are immediately updating guidance to our customer facing staff to reiterate that it is not mandatory for customers to provide documentary evidence for large cash withdrawals, and on its own, failure to show evidence is not a reason to refuse a withdrawal.”

Clacton’s Conservative MP, Douglas Carswell stated that “All these regulations which have been imposed on banks allow enormous interpretation. It basically infantilises the customer. In a sense your money becomes pocket money and the bank becomes your parent.”

, , , ,

TOP