A financial industry group has stated that the number of people seeking debt advice and relief could soar next year, as more and more people find themselves unable to deal effectively with their debts and financial commitments. A number of factors are likely to lead to an increase in the number of people experiencing difficulties with debt repayments, which could lead to more people needing help.

The prediction has come from a spokesperson for Lovemoney.com, who said that amongst other things rising unemployment over the course of this year could lead to more and more people struggling to pay their debts, and these people could end up needing advice on dealing with their unmanageable debts next year.

According to the head of consumer finance at the firm Ed Bowsher unemployment could soar over the course of this year, and this could make it impossible for many people to keep on top of their debt repayments. He said that options would be limited for those that were affected, and they would have to choose from filing for bankruptcy or opting for other solutions such as debt management or Individual Voluntary Arrangements.

He also said that it was likely that banks would end up writing off a lot of personal debt next year, as a result of the influx of consumers that may find themselves unable to meet repayments on loans, credit cards, and other debts. The huge cutbacks made by the coalition government in the recent emergency election are likely to affect job in the public and private sectors according to officials, and this could leave a huge number of people high and dry when it comes to repaying their debts.

Next year could see more people looking for debt advice is a post from: Glitec

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Growth in the current economy is almost unheard of. Commercial real estate companies are filing bankruptcy left and right. Tenants are setting fire to their contracts and these companies are left standing in their wake. Younan Properties is among the few companies that took precautions to keep from feeling the threat of the economy under almost any condition and because of this they continue to experience growth.

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No one like bankruptcy. However, when we are left with no choice then it is good to know how to file Chapter 7 Bankruptcy. After new bankruptcy laws has been enforced from October 2005 only people that have a lower or the same income than the average income of families with the same size as your own, in your actual state, are allowed to file for Chapter 7 bankruptcy.
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With unemployment at an all time high, and many families struggling through financial difficulties, it’s easy to view bankruptcy as a way out.  But declaring bankruptcy may not only be damaging to your credit, it could also affect future purchases and opportunities.  If you are considering filing for bankruptcy, here are ten ways to avoid bankruptcy.

1.  If you have a lot of credit card debt and you’re having trouble keeping track of which one to pay next, try contacting your creditors and having all the due dates switched to the same date.  This can help prevent late fees which can add to your existing debt – making it difficult to get ahead financially.

2.  The next thing to do if you have high credit card debt is to talk to your creditors.  Creditors may seem like the enemy at a time when you’re debating bankruptcy, but the truth is they may be able to work with you if it means they won’t lose all the money they lent you.  Negotiate and see if lenders will lower your interest rate and work out a repayment plan.

3.  While this tip may already be too late, it’s important to call your lenders/creditors even before your first late payment.  If you find yourself making the minimum payments and getting behind, be sure to see if your creditors are willing to work with you to forgive a late payment without penalty or extend the deadline.

4.  One alternative to high interest credit card debt is to refinance your home and get cash out.  Because your mortgage is secured debt, it has a much lower interest rate than most credit cards.  By refinancing, you can use secured debt at a low interest rate to pay off high interest unsecured debt.

5.  The most important thing to maintaining a healthy financial life is to live within your means.  This means to spend less than you earn – which is understandably a very difficult lifestyle change.  However, if you want to get out of debt, the best thing is to begin sustainable spending habits immediately.

6.  Along the lines of Tip #5, stop buying unneeded stuff.  While this may only apply to a certain group of people, the truth is it’s hard to resist the spending urge once you’ve developed a habit.  Instead, the next time you go to spend that extra $50, think about how much value that object really adds to your everyday life, and if it’s not crucial – save the purchase for when you’re financially ahead.

7.  If you are not on the brink of declaring bankruptcy, one tip to keep your finances in check is to save a large emergency fund.  By large I mean 4-6 months of take home salary.  This way, if disaster strikes (i.e. you lose a job), your emergency fund should hold you over until you find a job.  And even if you don’t find a good enough job within 6 months – the savings will still help cushion the blow from the loss of income.

8.  Consider getting rid of extravagant purchases if it makes sense.  If you just bought a new car and you’re having trouble making payments, think about trading it in for a cheaper car.  While it’s never fun to get rid of nice things, it’s more important to focus on being debt free and getting necessities paid for, like your mortgage.  Granted selling your 1-year old flatscreen at a third of what you paid for is probably a bad idea, because you don’t get much money out of it, and you just lost something that’s already paid off – so be sure to think about which purchases are a money-hog.

9.  Stay up to date on your credit score.  Many people assume they can pay off their debt by refinancing, or by applying for more credit to hold them over.  However, if your credit score has dropped and you don’t know it – you may be in for a rude awakening when your application is denied.  So be sure to check your credit score with Quizzle throughout the year, and dispute any errors.

10. If you have trouble budgeting, try getting rid of all credit cards and going back to spending cash.  Allow yourself a certain amount of cash each week and only spend what’s in your wallet.  Sometimes the best way to stop spending is to simply only spend what you have on hand.

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