'You have to speculate to accumulate' But what do you do if you have no money or are deeply in debt?
When deeply in debt, there is often the urge to avoid the problem and not think about it.
But what will happen if you leave it?
Interest on debts just make the problem worse
'Rates are based on your circumstances' means that the longer you leave it the harder it will be to fix.
County Court Judgments (CCJ's) are bad for your credit rating.
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Stress changes your outlook and your behavior towards friends, family and workmates. You could lose these!
Health - statistics show that stressed people are unhealthy people.
Unpleasant experiences with Debt-Collectors and Bailiffs.
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Re-possession - you could lose your house if you do not keep up the repayments....
Start tackling them today, start sorting the problems out, it will take a weight off your mind, make you feel better and even improve your health!
If things have already got so bad that re-possession is imminent, then sell the house yourself first, you may have to sell a bit low to sell quickly but it will be a lot cheaper and won't hurt your credit so much. You may even be able to settle your debts and buy a cheaper house somewhere up north or even the Caribbean!
Debt Management:
Getting out of debt: - For those that are comfortably well off there is not much incentive to take any risk and they are likely to continue with the status quo rather than rock the boat. These people are unlikely to be looking at this web site.
It follows then that if you are here then you may be in debt as a growing number of Britons are these days. That makes debt management a priority.
Debt Consolidation:
The simplest place to start is to replace a number of high-interest debts with a single lower interest-rate one. Some loans may be for an extended period of time and add up to a lot of money. Don't just look at the monthly repayments.
It may be better to use a credit card rather than a loan. With credit cards you can move the money from one to another depending on the best deals. You will generally have to pay a transaction fee, but it may still be cheaper in the long run.
Loans are usually over a fixed period of time and have penalty clauses for early repayment so you are more committed to them. However, if you can get a really cheap loan and know that you can afford the repayments, then it can take a lot of pressure off you.
Re-mortgaging or moving your mortgage to a cheaper provider may free up a lot of capital but remember, if you re-mortgage and have an endowment mortgage that your policy will no longer cover the required amount.
Watch out for loan sharks, some of them seem quite respectable but always
read the small print, some terms and conditions are quite draconian.
Think carefully - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Venture Capital :
You may be holding your head above water but want to do better. If you have some ideas that need financing then the traditional approach is taking a business plan to your bank manager.
He will want to see that you have thought things through. He will expect that you know the demand for your new enterprise, the expected setting-up costs and your cash-flow forecast.
If you are unfamiliar with any of these terms then you need to get familiar with them! And do your Market Research.
Some Banks are very helpful to start-up businesses.
Check with your local Chamber of Commerce and also see the Business page.
You may also want to find money from private sources however. In which case have a look at Angel Investment network and Zopa.
You might think about getting a silent partner to supply the money, but this is very risky as starting a new venture can put a lot of stress on any relationship and in any case, people can always change.
Always read the small print.
