Christmas borrowers: have a plan for payback
December 1, 2011 by guest
Filed under News-Banking
With Christmas nearly upon us, keeping the costs down to a reasonable level is an important part of enjoying the festive season in a way that won’t lead to worry and anxiety in the New Year. If anyone’s plan involves borrowing to meet the costs of Christmas, it’s important they first figure out a realistic repayment plan.
So says Think Money, which has issued a warning for people who are thinking of borrowing to help them meet the costs of Christmas.
It advises them to plan their finances out carefully before they actually borrow any more. Without a good repayment plan in place, they’re running the risk that they won’t be able to repay it as quickly as planned (or, potentially, at all).
As you might expect, this could lead to all kinds of problems, from higher-than-expected interest costs to late payment charges. Depending on the individual’s situation, it could even lead to more serious consequences, such as a CCJ (County Court Judgment).
“[…] some people might be making a New Year’s resolution to get their finances in order,” a spokesperson for the financial services company commented.
“For some, that might involve taking out a debt consolidation loan to simplify their finances and set out a clear plan for repaying their debts. This can be a good way of managing debt, but borrowers still need to make sure their repayments fit in with the rest of their budget.”
Tags: County Court Judgment, anxiety, Christmas borrowers, court, level
Mind: Debt can exacerbate mental health problems
May 24, 2008 by admin
Filed under News, News-Loans
Consumers who suffer from mental health problems can find their health deteriorates when they get into debt and receive letters from financial institutions, the national association for mental health, Mind, has said.
A spokesperson for the organisation said that people in debt are not just receiving one letter a week, but a barrage of phone calls throughout the day from different people, which can feel “quite intense” for some people.
Recent research by Mind found that the biggest reasons for people getting into problem debt were mental health problems (66 per cent), living on a low income (66 per cent) and difficulties in managing money (58 per cent).
Mind said that it has been working with the Financial Services Authority to change the way in which lenders treat their customers who have mental health problems and fall into debt.
“We are calling on banks to keep to… a code of practice, about responding appropriately to things like missed payments and treating people who are worried and have anxiety and depression appropriately,” added the spokesperson.
