Relief Debt Systems

Although credit-challenged consumers typically have problems qualifying for a general purpose credit card, using store brand (also called private label) credit cards can help rebuild credit. There are advantages and disadvantages to doing this.

Debt management: Beware of temptation you can’t afford

• Department stores often lure customers into applying for their store credit cards by promising a deep discount for the day’s shopping: “Save 30 percent on everything you buy today!” is a popular approach. Falling for this pitch can be bad news if you don’t have a tight hold on your spending. The credit card company is betting that you’ll charge more than you can pay off in one billing cycle, and will pay interest on your purchases. Finance charges can reduce or negate the benefit of the discount offered for opening the account.
• Opening too many credit accounts can “ding” your credit scores. Going to the ma

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The number of businesses becoming solvent in fell by a third in July year-on-year, raising hopes that the UK can continue its economic recovery.

According to figures from credit reference agency Experian, 1,542 UK businesses failed last month, 33% fewer than the 2,312 insolvencies recorded in July 2009.

This equates to an insolvency rate of 0.08 per cent of the business population in July 2009, compared to 0.12 per cent the year before.

All business segments bar the largest companies, with more than 500 employees, saw insolvency rates fall year-on-year, with the biggest improvements being amongst 101 – 500 employee companies.

This segment saw 30 insolvencies in July 2010, 56 per cent fewer than in July 2009.

What’s It Costing You?
The Dollar Stretcher Blog
by Gary Foreman
gary @stretcher.com

One of my favorite quotes comes from Henry Ford. “Thinking is the hardest work there is. That’s why so few engage in it.” Old Mr. Ford was an interesting man. He made some very good decisions (produce an affordable car for the average man, use an assembly line with interchangeable parts) and some very bad ones (sticking to old designs too long). That makes him a perfect person to help us understand an economic concept called “opportunity cost.”

What is opportunity cost? It’s a theory that states something that we already know. Sometimes you have two or more alternatives, but you can only choose one. To put it in a more scholarly way its choosing between mutually exclusive choices.

For example, suppose you were shopping for a new car. You’ve narrowed it down to a minivan and SUV. Both about the same price. You have to choose between the two. You cannot have both.

After test rides you decide to choose the minivan. That’s your opportunity. The ability to ch

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More than one million people are talking out so-called “payday” loans to help them make ends meet, to the concern of debt support groups.

The number of people taking out short-term loans has quadrupled since 1996, with more than £1.2bn being borrowed last year.

Payday loans are usually small loans, typically no more than £300-500, that are targeted at those people who need a quick cash loan for a short-term period, usually to cover exceptional expenses close to pay day.

But the loans have been criticised by some groups, with many short-term loans being charged at interest rates in excess of 2,000% APR, making them an extremely expensive form of borrowing as many short-term loans become “rolled over” when the borrower cannot repay on time.

”Payday loans are a valid form of credit and it’s much better for people to take one out rather than go to a loan shark,” said Sarah Brooks, head of financial services at Consumer Focus.

“But we do think there needs to be a limit on the number of loans people take out and how many loans they are able to roll over.”

However, the pay day loan industry says when managed properly, many people find this type of lending easy to understand and less risky.

”There is a reluctance among many consumers to take on long term loans from traditional lenders, because they feel their financial situation could change,” said John Lamidy from the Consumer Finance Association.

“But they find that the short term credit offered by the pay day loans industry does meet their needs.

”We are working with Consumer Focus to find out how serious the problems they identify are and whether they affect lots of people or just a few,” he added.

The Duchess of York is reportedly fighting off the threat of bankruptcy after amassing more than £2million in debts.

Sarah Ferguson is believed to owe around £2m to creditors and, although she claims to have paid off all personal debts, a spokesperson for the Duchess said that bankruptcy “was an option”. It is thought that her debts may relate to her business interests, both in the UK and US.

Sarah Ferguson issued the statement following reports in the Sunday Telegraph claiming that she owed around £5m in both personal and business debt. The paper claimed that the matter had been discussed by David Cameron and the Queen, who had become “deeply concerned” about the state of the Duchess’s finances.

However her spokesman dismissed the figures as “significantly” exaggerated. “There is a number of options open to the Duchess of which bankruptcy is one,” he said. “But it would be premature to say she is going into bankruptcy as the situation is being managed.”

Her debts mounted after the collapse of her American business venture and a lucrative contract with Weight Watchers ended. Fergus

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Carrying excessive consumer debt is not only a burden in the figurative sense, it weighs on many aspects of daily living. Ask yourself the following questions, and you can better understand how debt can damage more than your budget:

• Do your know how much you owe? Credit card debt increases quickly if you’re making minimum or late payments. Make a list of your creditors, your balances, and the annual percentage rate (APR) you’re paying for each account to help you prioritize repayment and make a debt management plan.
• Do you argue over money? If you and your significant other can’t agree on household finances, and are accusing each other of overspending, you may be headed up “debt creek” without oars.
• Do you hide or avoid opening credit card bills? This indicates two problems–you don’t want to face what you owe and/or are concealing the truth from yourself and your partner. Aside from forgetting to pay hidden bills, you can also violate your partner’s trust. Getting debt hel

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