How do I get from my debts

This topic is not a devious way to get a loan to help. But just for your help settle your debts. Almost everyone in our country has ever a loan. For example overdrawn at the bank, a credit card with monthly repayments, purchases through a mail order company with monthly payments or make a purchase from a store that also offers a time payment method.

The difficulty with loans (as above) is that it is very difficult to control. It's so easy to do something to deal with a credit card or via the Internet at an online mail order for example to buy a new notebook with you 'only' 15 per month to pay. The so-called "buy now and pay only after a year" at some stores (for example a new washing machine or a nice flat screen TV) seems so easy. But after that year, you almost certainly does not spared (force of habit) and start a repayment through PrimeLine example, a credit company that is linked to several stores.

All these smaller loans together can end up in trouble. You notice that you no longer true and the monthly debt to accumulate.

What you probably do not know is that you have an awful lot of interest paid for loans of this type. Interest rates to 18% annually is not uncommon and this is one of the reasons that the scuppers may result.

I will first give a few examples how high interest rates that may be. However, please bear in mind that this example is a snapshot of its time and that interest rates change.

This example is a hypothetical example, but would also save on your situation. I deliberately do not mention names of shops, mail order or a bank, since it is not my intention to discredit the authorities. The numbers and percentages are based on existing ones.

• Red standing by a known bank, eg: 1000, -
  Cost: 14.1% annual interest, in this case: 141, - annual interest.
• Master Credit Card (with month repayment period): Outstanding example: 2000, -
  Cost: 17.7% interest per year, in this case: 354, - annual interest.
• A purchase (or more) in a mail order, eg: 800, -
  Cost: 18% interest per year, in this case: 144, - annual interest.
• A deferred payment at a store after a year goes to a credit, eg: 1000, -
  Cost: 18% interest per year, in this case: 180 - annual interest.

Total debt in this example: 4800, -

Total interest (thus excluding redemptions) would in this example are: 819, - = 70, - per month.

This is a lot (actually too much) interest you pay. In addition, these loans are not really the motivation (for lack of oversight) in order to repay these debts quickly.

A solution may be to such additional loans to pay back the loan so quickly to zero. One idea would be to appropriate any savings to break. Even though this sounds like a financial suicide, it is still cheaper. The interest on a savings account is 4%, while you soon at 18% is for certain expensive loans. It saves so soon 14% annually.

But when you have no opportunity for savings to break because there simply are not. You can also consider as to consolidate your debts. That's a fancy word for a plan to get all your different smaller loans with high interest rates into a loan that has a lower interest rate so you can repay this in an orderly manner and net more money left over each month.

An example:

For example, when a walking loan closing at a well known financial institution, you (measured at 03.01.09) for a loan amount of 5000 - a gain of 6.8% annual interest. With a minimum redemption amount of 100, - per month.

The maximum duration of such a loan is 59 months (you can always charge extra to repay the term shortening) and over this period (59 months) than you will pay a total of 896, - interest on an amount of 5000, -. While in the first example soon at 70, - per month Sat Math of what that is about 59 months (I do that's just for you: 4130, -!)

Obviously there are multiple forms of loans and the interest choices and conditions at any financial institution is different again. But it is clear that the first example you borrow a lot of money lost and barely an overview about the repayments and charges that you've lost a month.

Important:

If you are in a situation similar to the first example, I give you are strongly advised not to try something yourself, but first contact with an independent financial advisor (someone who is not tied to any financial institution) and your personal situation with him through it. Such consultant has more sense of (financial) business than you or I and you do not fear a wrong choice.

Consolidating multiple debts, coupled with sound financial household budget plan, you can from the misery of debt get money.

Through many comments about 'how' and 'true' one and another one can start, I have here some tips to get you started:

Debt (public)

At every town you can get free help and advice to help you to get rid of your debts or has a plan for you personally to set up. In some situations, there is even a (partial) remission. If your situation is really dire, I recommend you first contact your municipality.

The next link you will see a list of Dutch provinces, click on your province and then choose your own (or nearest) town for contact information.
A survey of local authorities in your area that you personally can help you with your debts.

Self control your debts

When you first (with help) to settle your debts yourself, we refer you to an information site where you create your own five-step approach can begin.
Click here to visit the 5 steps to go

Contact an independent financial adviser

If you do not choose any of the above options, you can always feel free (and free) an intake conversation with an independent financial adviser (OFA) in your neighborhood. You need not worry that you directly to something secure. You can also keizen to not 1 but for example 2 OFA's going, so you can comparison material. To give you sound advice to give to these institutions have to know everything about your financial affairs. So not only your debts, but also your income, expenses, housing costs, benefits, pension, mortgage, and so on.

Click here for an overview (as prov indie / residence) independent consultants.

No more red

Independent advice with lots of information for a debt-free and economical life.