Women are better debt managers

Do you know women are far more likely to seek help and advice about the potential state of their long-term financial health than men? This fact is the result of a survey conducted by a reputed financial agency. According to a representative from one of the UK’s leading debt management firms, in their experience, women approach a specialist or pursue expert advice from an IFA, even if they feel that the condition is not that bad. On the other hand, men are far more vulnerable to seeking independent help but their callous attitude towards dealing with their financial situations is an obstruction in their healthy financial status.

In essence, women express a greater concern with regards to the actual way in which they should be managing their finances, whereas men take them as not a big problem. This is also the reason why more men overspend in festival seasons compared to women.

A spokesperson for the firm commented that the need or desire for women to obtain expert professional financial guidance often stems from a scenario in which debt burden is not so significant. This in turn, causes the vast majority of women to review their entire financial position, with the overall purpose of streamlining their income to outgoing ratio.

It has also been revealed that men are the least sensitive to adapt to debt management help. For this reason, men face more financial difficulties than women.

Experts warn over multiple credit cards

Are credit cards a monster that eats up your money in a big way? Well, it is really so if we go by the statistics put forward by CreditAction - a leading national money charity. The figures show that the average interest rate on credit card lending is 17.67%. It is a whopping 12.4% higher above the base rate level that is fixed by the Bank of England. Little wonder that credit cards are the biggest culprit when it comes to people falling in the debt traps.

People resort to credit cards for the sake of convenience in payment, but it should be kept in mind that over-dependence on these cards can get you in trouble. If you fail to pay the credit card bills within the interest-free period, you are charged very high interest rates. So, be wary of the trap. On an average, a Briton holds 2.4 credit and debit cards that are more than twice the number in any other nation. People hold more than one card for varying reasons. However, the problem arises when you have to keep an eye on the spending and repayments across several cards.

You should be cautious that you do not miss the minimum payments on your credit card bills and get exposed to heavy penalties. Experts warn people against getting used to taking credit through these cards and accumulating their debts.

The magic of financial prudence unveiled

As the personal debts in the UK are mounting, people are struggling to repay what they owe. Many people find themselves unable to keep up with the repayments on various outgoings - credit cards and loans. They are finding it hard to afford to make full payments to all their existing lenders. That is the reason why more and more people are now opting for debt management help to deal with their creditors.

Debt management is nothing but an informal arrangement between you and your creditors, negotiated by the debt management agency on your behalf. The agency takes details of your debts, income and outgoings, and provide proof to your creditors that you cannot afford current repayment levels.

Debt management professionals give more emphasis on negotiation with the lenders. Contacting the lenders directly and explaining them your financial situation helps a lot. Some or sometimes all your creditors accept a lower monthly payment or even freeze the interest rates for a certain period of time. This step definitely is a great relief and helps you to resolve your problem. After you adopt these plans, you only need to pay what you can afford. All your essential bills such as food and rent are also taken into account to calculate your affordability.

Debt management plans also offer you repayment flexibility. If your financial circumstances change, you may lower or raise your payments accordingly.