Debt consolidation mortgage arrears, how to pay debts off fast

Debt consolidation mortgage arrears * how to pay debts off fast * quick loans * cheaper electricity * how to earn more money * reduce household expenses * best money saving ideas

Start of article about debt problems.

Previous page about debt advice.

4. My PERSONAL FINANCIAL STATEMENT

So you've made that essential distinction between priority and non-priority debts, and have all the information on paper or screen in front of you. You also have similar lists of all your monthly income and all your monthly expenditure. You then draw up A FULL FINANCIAL STATEMENT OF INCOME AND EXPENDITURE which your creditors will want to see and which - just as importantly - will help you to plan your way ahead.

This is more easily said than done. Alex Keen in Life after Debt gives you a great deal of help, however, and includes illustrated examples of what these documents might look like. He also gives you concrete reasons why you should draw them up. They do not only help you grasp the reality of your situation: they also help your creditors appreciate your true position. In consequence, says Keen, your creditors may be persuaded not to take you to court and they may agree to freeze interest or to accept token payments from you while you focus on your priority debts.

Low cost mortgage quotes         Mortgages in Scotland         Debt advisors         Secured loans
How to get rich         Money problems         Money saving ideas         Cheap secured finance
Money making ideas         Debt problems         Individual voluntary arrangements         How to get out of debt
Low interest mortgages         How to halve your food bills         Make money from the internet
Homeowner finance         How to earn an extra income         Cheap homeowner loans
Reduce utility bills         Earn money at home         Cheap unsecured loans

Tony Palmer (Getting out of Debt...) agrees with Keen on the matter of drawing up a budget, which for him is the first of three crucial steps you should take.

STEP 1 - Draw up a budget, which will be used in negotiations with your creditors but may also help you in smaller ways: as you go through your bank documents and your receipts, for example, you may notice your direct debits are incorrect, or you're being charged on your credit card for goods you haven't bought. Palmer goes on to devote an eight-page section to showing how you should prepare a budget.

STEP 2 - Decide what expenditure you can cut back on (see below).

STEP 3 - Decide how you can increase your income either by extra hours or an extra job or through your benefit entitlements (see below).

Lorraine Turner (Get out of Debt Forever - The Ultimate Guide to Increasing your Wealth) devotes a considerable portion of her Chapter 1 to the question of how to go about drawing up your personal financial statement. There is also a detailed section on this process in Managing Debt - A Guide for Older People. See also the section below entitled Sources for access to relevant website help.

Debt problems