Quit Smoking with Electronic Cigarettes or E-cigs and Pay Off Debt

• If you are a smoker you should consider quitting with electronic cigarettes.
• They act as an alternative to traditional smoking and can reduce the cost of smoking on a monthly basis quite considerably.

The average savings can be as much as 88% with certain e-cigs or vaping instruments.  The vaping technology includes e-liquids that are placed into an atomizer type smoking pen and they can contain nicotine or be bought without any nicotine content.

Other electronic disposable cigarettes and rechargeable e-cigarettes have cartomizers which are little cartridge type products that emulate filters of traditional cigarettes and in the case of the rechargeable e-cigs these simply screw on and off when empty. The disposable ones are attached and the entire e-cig is thrown away after its one and only usage.

If you are currently paying off debts and would like to get to the final payment that little bit quicker then you should consider saving money at all times. These relatively new smoking alternatives are trending in a rather large way and more people everyday are turning to these electronic vaping products.

The average spend on traditional cigarettes each month is as much as £200. If you saved £160 by switching to the new alternatives then surely that would help to go towards another financial credit commitment that you may have each month!

If you are struggling with personal debts and require the help and advice of a personal debt consolidation company;

• Call Lewis Alexander today in confidence using 0800 018 6868.
• Our lines are open 24 hours and your call is free from a UK land line.
• Mobile calls may be less expensive if you dial 0161 872 3383

Personal Debt Consolidation Services available throughout Scotland

• Do you live in Scotland and need to clear personal debt problems?
• Have you struggled recently to pay credit card debts and loan repayments on a monthly basis?
• Would you benefit from the professional help and advice that a trained personal debt consultant can offer you regarding ways to clear debts in Scotland?

If you answered YES to any of the above, Lewis Alexander Financial Management may be able to help you!

+Lewis Alexander Financial Management helps many consumers throughout the UK on a daily basis to consolidate personal debt problems without them having to take on any further loans or credit commitments.   

Not all people understand that there is a way out of personal debt without having to take out another loan or increase borrowings further.

Why go further into debt to try and get out of it? This action makes little or no sense!

When trying to work out the best solution available to you to clear your personal debt problems in Scotland, the most important thing to consider when comparing debt solutions available to you is the total amount you will repay by the time your debt is cleared in full. The timescale to clear the debt is not the most important factor or consideration but people seem to prioritise the speed of clearing the debt.

We understand that people wish to clear their personal debt problems as soon as possible but certain debt consolidation solutions in Scotland are not always the most economical route to take. Find debt solutions that work!

If you have been refused a loan in Scotland and are not sure which way to turn now to clear your debts, then Lewis Alexander may be able to help you today.

We offer personal debt help and advice regarding all personal debt issues.  If you are a Scottish resident our advice also covers the following debt consolidation solutions which should be explored and considered by you before embarking on a journey to clear personal debt problems.

• Debt Arrangement Scheme – Government run repayment plan, conditions do apply.
• Debt Management Plan – Informal repayment arrangement between you and your creditors.
• Trust Deed or Protected Trust Deeds – Formal arrangement for personal Scottish insolvency.
• Sequestration – Scottish equivalent to Bankruptcy in England in England.

The above personal debt solutions are the most commonly used throughout Scotland by people suffering with personal debt problems.  The quality of the service available does vary depending on the company you select to help you. The consumer should be aware and make sure that they have asked enough questions to allow them to make an informed decision about how best to proceed to clear debt.

If you are unsure about advice you have taken and do not feel comfortable with the route being recommended to you, then please call our personal debt helpline today in absolute confidence.

• Call - 0800 018 6868 - Free
• Lines are open 24 hours / 7 days
• Calls are usually free from a UK land line
• From mobile it may be less expensive to call 0161 872 3383

Expat of UK? - Find out How to Claim Back PPI

• Are you an Expat of the UK living abroad?
• Do you want to claim back PPI or (Payment Protection Insurance) on your credit agreements?
• Do you need information on how to go about the PPI claim process as an Expat living abroad?
• Have you considered claiming directly without involving a company to claim on your behalf?

If you are an Expatriate of the UK and have credit agreements that have either been paid in full or are still outstanding, you may have been mis-sold PPI or payment protection insurance on these agreements.

The reasons for the PPI mis-selling are various but the banks have admitted that the money is owed back to the consumer if the fact is that the consumer was mis-sold Payment Protection Insurance in the first place.

If you live abroad as an Expat of the UK you still have the same entitlement to make a claim!

The two most popular ways of claiming back PPI (Payment Protection Insurance) are as follows;

• Claim back PPI directly yourself without a claims management company.
• Use the services of a claims management company regulated by the Ministry of Justice in relation to claims management activities.

The differences between the two options above are quite simple, if you use the services of a claims management service they will usually charge you a fee for making a PPI claim on your behalf, the fee can be as much as 40% of the money reclaimed in some cases but 40% is extreme, most charge between 20% and 30% of the successful amount reclaimed.

If you are in arrears with your credit agreements, it is very important to understand that you will still have to pay a fee to a claims management company that is successful on your behalf and usually when you are in arrears, the lender will not send you a cheque or clear any funds to you, they will just deduct what are owed back off the outstanding balance that you may owe.

The above is very important to remember if claiming back PPI whilst on a debt management plan or whilst your accounts are in arrears.

Should you wish to claim back PPI whilst living abroad as an Expat of the UK and want to make the claim yourself without involving any other claims management companies that may charge you a fee, you can visit the well known consumer website "which" or go to the "money saving expert" website run by Martin Lewis (from national financial TV shows in the UK) and type in “PPI claims” into the search box on the homepage. This will lead you to a full page explaining how to claim PPI directly and also offers a template letter to use when making your Expat PPI claim.

If you are an Expat struggling with personal debt problems and require some debt help or debt advice as an Expat living abroad, Lewis Alexander Financial Management may be able to help you.

We help many people every day and deal directly with their creditors for them. We also have clients that live broad or are Expatriates of the United Kingdom. This also includes helping consumers who have had a PPI claim refused or rejected.

For debt help and debt advice in absolute confidence, call our personal debt helpline;

• 0800 018 6868

Calls from UK land lines are usually free.
Calls from mobiles maybe less expensive if you call 0161 872 3383

• Lines are open 24 hours / 7 days

Best Way to Clear Credit Card Debts

What is the Best Way to Clear Credit Card Debts?

• Struggling to find the best way to clear your credit card debts and store card debt?

• Do you need help to clear credit card debt and store card debts in the UK?

Credit card debt can be very hard to clear and when the interest and charges get out of control, the minimum payments you make seem to have little or no effect on reducing the credit card or store card balances.

When people tell us that they are not in debt because they make the minimum payments each month on their credit and store cards we have to accept that the individual is not actually aware of what game is going on with them financially.

If you only pay the minimum payments each month on your credit card and store card commitments, you are actually renting the debt from your credit card or store card provider/s.

• This is exactly where the credit card and store card companies want you to be, it’s great for their business model.

This is because what you pay is not actually reducing the balance owed and when you make the regular monthly payments, the interest and charges that the card provider has allocated to your account are in most cases more than the payment you have made.

This creates a situation where the credit card outstanding balances are hovering or going up and not reducing in line with payments made which is the end goal.

These credit card companies would not make so much money if everyone paid their cards off in full on a monthly basis. However, it is only when an individual suffers a change in circumstance that the financial problems often start.

If you are stretched to the financial limit every month and run out of money for normal household expenditure and essential items, it is nearly impossible to get back on track unless you can earn or obtain more money to make up for the change/s you have suffered.

When you suffer a setback financially it makes every other area of your financial life more difficult to manage.  This is even more certain if you have not been allowing much or any room for financial setbacks you may encounter.

If you need help to clear credit card debts or store card debt and are struggling to find the best debt solutions or just a way out of the debt problem you face, call our debt helpline today in confidence using;

• 0800 018 6868

Lewis Alexander Financial Management are currently helping many people to clear credit card debts, loans and store card debts on a daily basis through personal credit card debt consolidation help and advice.

• Call 0800 018 6868 today!
• Lines are open 24 hours a day / 7 days a week.

Find Reputable Debt Consolidation Services

• Are you struggling to find a reputable debt consolidation service?
• Not sure who can actually deal with your personal unsecured finances?

Lewis Alexander is a personal debt consolidation service in the UK. We offer assistance daily to people who find that they are unable to manage debt problems any longer and need the help and advice we can offer to get started on the road to clearing debt for good.

So what is the most important factor about Lewis Alexander as a debt consolidation service that sets it aside from other debt consolidation services?

It is simply that when we find our clients, or they find us, it is through our own marketing, not that of another company, intermediary or lead generation service.

• This is important for a number of reasons;

1. The OFT require that marketing for debt consolidation services must not be miss-leading, so we can control this with responsibility in house!
2. Debt consolidation lead generators can and have employed many non-compliant tactics to procure a lead and sell the prospect on for unlimited gain!
3. Lewis Alexander debt consolidation services do not pay for leads or client acquisitions from 3rd parties. We are a self generating operation.
4. Our clients always know who they are dealing with!
5. Our clients always know who they are paying!

• More reasons to use the personal debt consolidation services of Lewis Alexander;

1. Our clients always know that the money they pay Lewis Alexander is ring fenced in a secure client holding account at the Royal Bank of Scotland Plc.
2. Our clients rest assured that Lewis Alexander complies with and respects the OFT debt management guidance.
3. Our clients know that Lewis Alexander Limited company accounts are audited by regulated chartered accountants that have recently celebrated 100 years of incorporation.
4. Our clients know that we only advise them to explore solutions that we believe, from our own experience would suit them, this can be done after we have taken initial information about their current personal financial situation and circumstances.
5. All communications are secure, our website is HTTPS registered with GlobalSign and all communications are encrypted to Government standards.
6. Lewis Alexander is registered with the Information Commissionaire for Data Protection.
7. Licensed under the Consumer Credit Act by the Office of Fair trading.
8. Members of the Association of Finance Brokers.
9. Our trading name Lewis Alexander is a registered UK trade mark.
10. National television advertising credibility.
11. Our company is a registered UK company celebrating our 10th year of service.

Lewis Alexander is proud not to deal with other lead generation companies regarding the buying or acquiring of consumer data with regard to debt consolidation services.

• If you need the services of a professional and reputable time served debt consolidation service when dealing with debt then give Lewis Alexander personal debt helpline a call today using 0800 018 6868
• Lines are open 24 hours / 7 days a week and your call is usually free from a UK land line
• Mobile call costs may vary

Personal Debt Guide

• A simple personal debt guide about online financial terms and UK personal debt terminology. 
• This personal debt guide explains common financial terms used within the UK debt and personal credit industry.

Every person should be able to find out about the basic terms used when dealing with personal debt advice and help in England, N. Ireland, Scotland and Wales.

Administration order - An arrangement through a county court to repay over period of time at reduced rate.

Bankruptcy - A final end to a debt problem that cannot be repaid within reasonable time. 

Consolidate or Debt Consolidation - A process of putting multiple repayments and credit accounts into one new one that consolidates the situation. 

Creditor - Company or person who is owed money by a debtor. 

Debt Management - Informal arrangement between you and your creditors to repay at a rate you can afford which is NOT legally binding. 

IVA or Individual Voluntary Arrangement - Formal arrangement between you and your creditors which is legally binding. 

Insolvency - A procedure of dealing with personal or corporate financial/debt issues. 

Insolvency Practitioner or IP - A qualified and regulated person who can supervise your IVA. 

Mortgage - Loan taken to buy a home with the home acting as security in the event of failed repayment. 

Secured Loans - Loans requiring secured items against the risk of none or failed repayment. 

Trust Deed - in Simple terms, A Scottish IVA with some differences. 

Unsecured Loans - Loans not requiring secured items against the risk of none or failed repayment. 

Data Protection Act 1998 - Protects a consumer against the disclosure of and the use of personal information. 

Consumer Credit Act 1974 - A legal Act and guideline of rules for the general credit industry in the UK. 

CCL or Consumer Credit license - License required to undertake offerings of certain credit facilities and services. 

If you would like one of our trained financial advisors to call you back to discuss debt management UK help and debt advice UK, then please call us FREE from a landline using 0800 018 6868.

Debt consolidation Help and Advice for a Fresh Start

• UK debt consolidation advice could be all you need for a fresh start

Debt consolidation help is available everywhere it seems. Getting the right debt consolidation advice is very important if you want the best chance of getting out of debt quickly.

Get advice to help clear your personal debts in the UK

Debt help is not purely about just being told what you need, sign a piece of paper to tie you into yet another contract and then reap the rewards of poor debt management plans. To really get to the bottom of an individuals personal debt situation takes care, attention and tact because people often feel embarrassed and vulnerable when it comes to talking about debt on our debt helpline.

Our debt advice UK advisors won't just try to convince you to enter an IVA or Debt Management Plan unless it is the correct and best debt consolidation advice for you, they will want a proper discussion to carefully work out what would be the most beneficial debt management solution for you as an individual.

Do you need just ONE, affordable monthly repayment to pay all your unsecured debts!

This can be a possibility subject to your status through effective debt management and building a personal debt help plan that will address your specific situation.Once that has been established we can recommend what personal debt consolidation solutions we think would suit you best meaning you will be better placed to make an informed choice about your financial future. Our recommendations may include any of the following.

• Debt Management UK

• Debt Consolidation

• IVA or Individual Voluntary Arrangement

• Protected Trust Deed in Scotland

• Personal Loans

There are other ideas we may have that could involve less formal propositions than those listed above but these tend to only be applicable when the debt problem is not that severe. The larger the debt problem, the more formal the personal debt solution tends to be.

You will have an idea of how serious things have become by how much stress you feel under to pay bills each month. Obviously, if things are so bad that you are not paying your mortgage arrears each month, you could be about to lose your home so something has to be done quickly.  Other lesser bills can be dealt with equally efficiently and this can help to keep creditors away from your door and off the phone.

Some of the more formal options, such as the IVA or Individual Voluntary Arrangement, actually guarantee the end of creditors writing, calling or visiting you to try and get cash from you. They usually respect the process of an IVA and once agreed they should not harass you for interest or charges.

Struggling because of a poor or bad credit history / score?

You may be struggling to get credit because of a rocky patch in your past. Find out what can be done to repair your credit rating by examining your credit reference files and ensuring everything is correct.  Find information about how to repair your credit rating
Call and one of our trained advisors will give you confidential advice!
Call free from a land line using 0800 018 6868 and make a fresh start today!

The forecast is still decidedly cloudy in the housing market

Whilst fish & chips, afternoon tea and owning your own home are classically British traits, our continental cousins in France and Italy are still happy to pay rent for their homes. So is this preference toward ‘bricks and mortar’ investment healthy?

For many years this model of owning a home did indeed make sense. Location flexibility was required by only a few employers and as families tended to stay close to their roots, purchasing a house as an investment and something to pass on to the kids (or to sell and fund a retirement) worked out as a great all round option.

Then along came the Eighties’ and with it a housing boom and an even tougher bust with interest rates soaring toward 20%. Then in the late Nineties and most of the Naughties came along another considerable period of house price rises, until the financial turmoil and fall out from the now infamous Sub-Prime lending.

This has left many British families who had gambled their financial futures on house price rises starting to sweat and require debt advice UK. Sure a period of negative growth had hurt a little bit – and indeed a blanket drop of approximately 30% across the UK (London excepted!) did initially look a bit scary.

• Prices were sure to rebound… weren’t they?

Sadly, some three years on and we are still awaiting this rebound and if the latest figures from the Halifax House Price Index are anything to go by, in the year May 2010 to May 2011, a further 4.2% has been eroded from the value of our homes, with the average UK home now worth a touch over £160k.

• So with no real sign of prices returning to late 2007 highs, where does this leave ‘Alarm Clock Britain’?

In short, whilst no high street banking executive or government official would admit to it, there are still a number of UK families who are technically insolvent. This is because the total of their personal debts exceed the total value that could be raised by selling all of their assets.

• Ok, but what does this actually mean?

Being insolvent doesn’t necessarily mean that millions of people are about to be declared bankrupt, instead it means that a little bit like Greece, they need to implement some austerity measures in order to avoid the murky shadow of debt creeping ever further over them and start to repay some of this borrowing.

It also means that somewhere between 10 & 15% of UK mortgage holders are still in ‘negative equity’ meaning that their possibility of moving is restricted, unless they effectively find another deposit to help them secure a mortgage.

For example, a couple who earn £40,000 between them and bought a £200k house with 100% mortgage (i.e. a £200,000 mortgage) in 2007 could now expect that house to be worth less than £200k today.

If that couple had lost their jobs through redundancies and now wanted to move to a similarly sized house in a new area for a new job, then they could be some thousands of pounds short of the amount needed to repay their original loan.

In addition, under current mortgage lending criteria, most lenders are not offering mortgages for any less than 85-90%.

So, with this kind of scenario stopping people already on the property ladder from moving, then it’s up to the first time buyer to help oil the wheels of recovery for the housing market.

• If you are struggling with personal debt or have mortgage arrears due to debt problems, call Lewis Alexander today using 0800 018 6868, calls are FREE from a land line.

Ashamed to ask for Debt Help

Get advice about your debts and help with your money,

• There is no shame in asking the people who know the answers for help when it comes to personal debt.
• The alternative could be getting deeper and deeper into debt making it harder and harder to escape from.
• Wait no longer, ask for that help today.

Life in Britain today is lived in the fast lane and the expectations we all try to live up to can be crippling at times. This constant expectation can have inherent financial implications which in themselves can lead to people needing professional debt help. Many people try to suffer quietly because they wrongly think that they are the only ones who are experiencing these debt problems.

A lot of people are fighting personal debt and the ones who get out of debt quickly are the ones who get proper help to clear debt as early as possible.

If you feel you perhaps need debt management UK or are maybe not sure whether our help is necessary, call us or get in touch using 0800 018 6868 so one of our advisors can talk to you to ascertain whether or not you might benefit from our advice.

Money trouble is one of the biggest causes of divorce in the UK and can even cause serious stress induced illnesses. Our debt management plan is designed to take away the stress at the same time as removing the debts in a pain free and organised manner.

We offer people tried and tested ways to better organise their debts in an attempt to pay off those debts in a timely way that doesn't incur further interest or charges, this can not be guaranteed. We work in conjunction with your creditors and because everything is agreed by all parties, the constant barrage of creditors letters and phone calls also tends to cease.

• Organise your debts better with debt management solutions.

• Consolidate debts into one easily affordable monthly repayment 

• Lay out a formal repayment plan with an IVA or Individual Voluntary Arrangement

All of these debt solutions have their own benefits and downsides but may not suit every situation. Once we have spoken with you we will be better able to advise you on a course of action to get your debts under control.

Our main aim has always been to financially empower consumers to regain control of the quality of their lives through education and financial management through UK debt help.

To this end we focus on the vulnerable people in society as well as the well off. The following groups of people find our help invaluable on a regular basis.

• Single parent in debt.
• People recently made redundant and in debt.
• Retired people with debts.
• People who have just lost a loved one and have been left with debts after a death.

Get help today by calling 0800 018 6868 now!

Personal debt advice and help

• Get debt advice that will actually make a difference!

It does not matter what time of day you decide to get debt help, our lines are open to take your call 24 hours a day, 7 days a week.  So if you have woken again during the night and have decided it is time to change your financial future, we are happy to take your call.

• Call us right now! Day or night you can call FREE from a BT land line using 0800 018 3345.
• We offer personal UK debt advice and help that you can rely on!

With such a variety of information, disinformation, advice and what is sometimes pure myth, it can be difficult to try and figure out what is actually good reliable personal debt help these days.

We have a work ethic that we are rightly proud of. We offer totally confidential advice on debt to people struggling through a very difficult and sometimes awkward part of their life. We do not take advantage of our clients when they are at their most vulnerable. We guide them and advise them how to clear debts the simplest and most economical way we can recommend. From students to pensioners we can and do help most people with debt management UK.

Personal debt affects different people in different ways because everyone has different circumstances and different lifestyles. We aim to find a solution for you which is tailored to suit your own set of circumstances and will hopefully align itself to your own lifestyle.

Firstly, remember that debt consolidation advice should not be costing you a single penny. If you have been offered advice at a cost, then perhaps you should walk away. We could be able to help you pay off all of your debts and you could obtain one affordable monthly repayment. We can also try to halt any interest charges that you may currently be being charged by store and credit cards through a debt management plan but this can not be guaranteed.

Individual Voluntary Arrangement or IVA
IVA or Individual Voluntary Arrangements have a fixed repayment period of no more than 60 months ending on a specific end date which you are aware of from the beginning. After this date, all your debts are usually cleared. In England and Wales, creditors have to freeze all further interest and charges by law (In Scotland an IVA is better known as a Trust Deed. Once you have made your final repayment, all outstanding debts are usually legally written off by your creditors.  Creditors are held to the agreed repayment amounts throughout an IVA and should not alter them.

Do you know that you have failed an IVA and wish to gain further help or advice.
or
Do you want more information about the alternatives to bankruptcy in England

If you would like to read our client testimonials in full please visit our client testimonial page for full details.

To find out if we can help you start to clear your debts, call 0800 018 3345 now!

Do not fool around with debt in April

April is not a time to be fooling around if you have personal debt problems. It is a time when if careful, you can really plan a solid financial routine for the rest of the year. Christmas was only round the last corner and it will be Summer soon. You do not want to be worrying about court actions and solicitor letters from credit companies and their collection agents when you could be out enjoying the spring and summer air! Get your finances sorted! If you are still reading this article you are either genuinely interested or seriously over committed with personal debt.

Lewis Alexander helps many people every day to consolidate their personal debts or just gain friendly advice to set them on the road to their own managed financial stability.

The hard part of a sound financial life is good planning, when you start it really is quite simple, it is the thought of delving into the unknown that is the frightening part and this can stop most of us being financially OK!

This article is designed to get you thinking about how you could better plan the rest of your year financially if trying to clear debt, what would you like to buy friends or family for birthdays and Christmas this year? There are 5 simple letters you must remember and can apply to your finances and most areas of your life.

PPPPP - Perfect Planning Prevents Pathetic Performance!

If you need advice on personal debt problems and you are a UK resident over 18, please contact Lewis Alexander Financial Planning, online or visit our debt help website for further details.

We can help with debt management, bankruptcy, personal loans and an IVA or Trust Deeds,

Call 0800 018 6868 FREE today in total confidence!

One in Ten adults permanently overdrawn

What traditionally was considered a facility to cover yourself for the unintentional ‘slip-up’ towards the end of the month (when your wages had run out!) is increasingly becoming a necessity, new research commissioned by Money Supermarket has claimed.

According to the internet company, being overdrawn is now a permanent fixture for 10% of UK adults and this figure increases to 16% in the 20-29 age category.

It is this youngest age group which caused researchers most concern as almost half this age-group had fallen into the red in the last year requiring debt advice UK.  When this is combined with the poor savings habits of the young it makes for grim reading. 

Unsurprisingly it is the ‘grey’ bank account holders that seem to manage their money best, with only 18% of those aged 70+ using their overdraft at all during the past 12 months!

So is this increasing use of the overdraft facility a worrying trend, slack financial management, or simply a reflection on the extraordinarily tough economic conditions that preside in the UK at the start of 2011?

• This blog writer is of the opinion that a combination of all is to blame.

The hidden mystery and respect for the local bank manager has dissipated over the past 20 years, to the point where they are now little more than sales managers.  The banks would have you believe that all staff are ‘customer service representatives’, but make no mistake, the smiling friendly face in your local branch has sales targets tattooed on their brain!  This culture means that when you go into the bank, the banks staff actively try to sell you an overdraft, instead of pointing you to the virtues of impeccable fiscal restraint and planning.  When this is coupled with the fact that having an overdraft (or at least applying for one) is tagged on to the account opening process – in the same way that having a debit card is – it is hardly surprising that the trend for having overdrafts in the first instance is increasing.  And of course, once you have one… its easy to spend!

Next on the ‘blame’ list is the slack financial management that pervades the UK.

• But where has this come from?
• Were we always this bad?

Internet research suggests not and indeed if you ask any person of pensionable age and they are likely to blame the ‘I want it and I want it now!’ age.  Re-wind back to the 1960s and it was normal to save hard before finally making a purchase.  But that wasn’t all… the modern age is said to have become a time when an incredible variety of gadgets, cars, items, jewellery, clothes and indeed furniture are said to be ‘needed’. 

Whereas our relatives who saved in the 60’s and before were saving to buy one item, rather than several!  Add in the fact that very few households truly understand their monthly outgoings and Houston, we have a problem.

The tough economic conditions are the final leg of this increasing tendency to use the overdraft.  It has been well documented that food price inflation, energy bill increases and the sky-high cost of petrol are hitting ‘Alarm Clock Britain’ hard.  As this creates an increasing squeeze on household budgets, the inevitable consequence is to dip into the overdraft.  However, this type of overdraft usage isn’t the occasional slip-up… it’s the use of a credit facility to fund every day living.

If you find you are in this position and are living in your overdraft each and every month, then you might want to consider a financial health check from Lewis Alexander.

By calling us FREE from land lines using 0800 018 6868, our trained debt management consultants can help review your financial position and can offer options to help you get out of debt.  It is rare for UK adults to only have one line of credit – an overdraft – and because of this we have a wide range of experience in helping clients with a variety of personal debt problems, from struggling with a small loan, through to those with on the verge of bankruptcy.

• Call today using 0800 018 6868 to see if we can help you!

Why the doorstep loan and cash loans are not a long term debt solution

You can hardly watch 30 minutes of TV without catching at least one advert break in 2011 - and the chances are that this commercial interlude will include at least one entry from a financial services provider! 

Increasingly, these companies are concentrating their efforts on the lowest earners in the UK and the most recent phenomenon of the doorstep or pay-day loan.  Typically ranging between £50 and £1500 and lasting for between 5 and 30 days, these loans are designed to help those who run out of cash at the end of the month and need a cash injection before their wages are paid, in order to meet pay their everyday expenses.

According to a recent survey, most households run out of cash on the 22^nd or 23^rd of each month.  As most of the employed workforce in the UK are now paid once per month they will be familiar with these barren final few days until the next pay check comes in. 

In the not-to-distant past, this gap would be filled by taking ‘overtime’ at the factory or by pawning your grandfather’s watch, but the modern equivalent is to walk into the various cash shops that have opened up offering payday loans or to visit the websites or indeed i-phone applications that are available.

An alarming number of UK households are now using pay-day loans on a semi-regular basis to help see them through.  In many cases those taking the loan do not realise that rates of up to 3000% can be charged for such loans.  Crass calculations for sure, but what these ‘telephone number’ APRs do demonstrate is that a closer look into this areas is required. The fact that the loan is repaid in such a short period of time does have an effect on the APR being higher.

By the time that you have borrowed £100 for 2 weeks, it is common to repay a total of in and around £120.  That £20 might seem like a small price to pay, but in effect this ‘eats’ £20 into your wages each month that you use a doorstep or payday loan company.

Furthermore, should you fail to make the agreed repayment, then the £100 borrowed can quickly turn into hundreds and even thousands as late payment penalties, bounced bank direct debits and the somewhat dubious administration charges are applied to the cost of the loan.

So why is the UK turning ‘en masse’ to this form of lending?  In the past, if you were short at the end of the month, it would involve one quick call to your bank to request a short-term overdraft or extension to your overdraft.  Now with the state of bank finances, these short-term requests are increasingly falling on deaf ears as banks tighten their purse strings.  The result is that increasing numbers flock to doorstep loan companies for what they see as a quick fix to their financial struggles.

Is it this ‘ease of availability’ that customers are drawn to? Or the flashy ‘friendly’ looking advertisements? Or indeed the fact that these companies are not the large corporate banking organisations that the public increasingly blame for the hard-times experienced in the current economy.

Perhaps it is more appropriate to blame a lack of education and public understanding of what a failure to repay the short-term advance would entail.  Instead of the government looking to legislate around these large APRs, a more sensible option would be to ensure that customers taking such loans were fully aware of what might happen should they fail to repay the loan – but this subject sounds like an all together different subject for a blog!

If you are experiencing financial difficulty caused by taking out such a loan, then you may want to get some independent help to review your overall financial circumstances to at least stop this debt from escalating further.  Here at Lewis Alexander we are available to listen to your personal circumstances before appointing one of our independent debt management consultants to assist you with your case.

Call us today on 0800 018 6868 and we will work with you to help you out of your financial difficulties.  All we ask is that our clients have a regular income and a will and determination to improve their circumstances.

Sitting on a situation and taking no action rarely helps, so call us FREE from a land line today on 0800 018 6868 and start to take control of your finances again.