Posts Tagged ‘payments’

Implementing your New Year’s Resolutions

With 2018 in full swing, many of us are focussing on staying on track when it comes to achieving the resolutions that we set for ourselves this year.

For a lot of people that means tackling debt that may have crept up to higher levels over the festive period. With presents to buy and more social occasions to attend, it’s easy to let your finances spiral out of control over Christmas. If you are keen to get back on track, check out our tips for lessening your debt and ensuring this year is your most financially comfortable one yet.

Be aware of your borrowings

The first step you will need to take when it comes to reducing your debt is being aware of how much it is that you actually owe. Also get to grips with how much interest you are paying, and to whom it is being paid to. If you already have a credit card or loan with a particular company, it is unlikely that they will allow you to take out another one to contribute towards lessening your debt.

Transfer to a zero interest credit card deal

If your debts are substantial, it’s unlikely that you will be able to move them to one credit card account, but you do have an option. You could move as much as possible to a zero interest credit card deal. You would need to pay the minimum allowed on this account and then focus your efforts on paying off the more expensive debt that you weren’t able to pay off.

Check out all of your other finances

We all have a number of outgoings to deal with each month and in the interest of reducing your debt it may be worthwhile seeing if any of them can be altered in any way to help you reduce your debt.

Utilities – Gas and electricity prices are up following recent rises, so if you are on a standard tariff or fixed deal that is about to end, it may be worthwhile shopping around and seeing if you can find a better deal elsewhere.

Mortgage – For most people, this is the biggest expense each month so it can be helpful to discuss your options with a mortgage advisor. If you have had the same home loan for a long time you may be able to reduce the interest rate by remortgaging.

If you are concerned about any of your personal debt, property debt and/or negative equity we are able to offer industry expert advice to help you overcome your problems. Call Bell & Company today to discuss your circumstances with one of our skilled advisors, experts in debt.

INTEREST RATES – ARE YOU READY FOR THE RISE

The Bank of England will soon need to rediscover its trigger finger and fire the gun on as interest rates rise in the near future. We have enjoyed 7 years of ultra-cheap rates and “cheap money”, however any rate change is set to have a significant impact.

Bank of England’s Monetary Policy Committee meets on 8 October and though they are expected to vote to keep rates at 0.5% there is a consensus one more member may vote in favour of a rise. Furthermore, members have conceded a rate rise in the near future is inevitable.

What the committee is weighing up is the sharp rise in disposable household income and the effect global uncertainty will have on the UK economy, this uncertainty is caused by the ongoing Eurozone crisis and China’s struggles. Mark Carney, Bank of England Governor, has said the rise in household disposable income is the next step towards a rate rise although economists have argued the economy may be unable to handle a rate rise come Spring and Summer 2016 due to global economic uncertainty.

When I research the interest topic the literature rarely focuses on Northern Ireland. The fact is a high proportion of borrowers here are “mortgage prisoners” and many simply will not be able to sustain mortgage payments. When you couple rising mortgage payments and increase in general in credit commitment payments many will find themselves in a dire financial position.

Bell & Company are advising borrowers concerned with mortgage payments to contact them today. It is important to “act” and not “react” to the proposed changes in interest rates. We cannot stress enough the inevitability of this rate rise, we have had our time utilising cheap credit and many will now feel the pinch. Even if you are in Negative Equity our expert team can assist. Please call the office on 02895 217373 to arrange your free initial consultation.

The team look forward to taking your call.