Consumer Debt Free Infographic

Consumer debt infographic download


The following article is written by Personal Finance Blogger Leonard Carter who runs the Wallet Doctor, a money-saving and debt advice blog focused on helping you defibrillate your wallet back to life and improve the health of your bank balance. He has provided us with a brilliant infographic below to get your teeth stuck into!

When it comes to managing debt, many people are robbing Visa to pay MasterCard. This can hardly be called a debt management strategy as maintaining your repayments in this way only guarantees two things:

1)      You delay the inevitable.
2)      You severely limit actual options to deal with debt effectively.

Despite the above, you will still find millions of people dealing with debt in this way. Often they’re either too embarrassed to get help, or they’re hoping that they will eventually sort out the debt themselves.


Handling debt


Whilst there’s nothing wrong in handling your debt by yourself, it’s important to be realistic about your situation. If you’re saving as much as you can, and you’re earning as much as you can, but still find that you’re essentially living month-to-month, then you need to be aware that you’re only one missed payment away from a whole new level of creditor pressure.

For 78% of people, problem debt has undermined their self-confidence and ability to support themselves or their family, but it doesn’t have to be this way.

Making more reasoned choices early-on, and if necessary, reaching out to debt charities can ensure that you are the one managing your debt, and not your debt managing you.

The infographic below, brought to you by The Wallet Doctor, provides insight into the typical debt cycle for many people and shows you how to can avoid the same trap.



Interested in guest posting or writing a sponsored post? Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment.


Credit cards are good

Credit cards ARE good! But credit card debt is bad.


Many people I know fear to use a credit card. They believe that by having a credit card they will inevitably accrue debt. If this sounds like you, then let me reassure you that you are losing out on not having a credit card. I hope to change your mind.

The most important thing to do upon getting a credit card is the following. Before you spend a single penny on that credit card make sure that you call up your credit card company and set up a direct debit to pay off the balance on the card in full each and every month. This will ensure that you never miss a payment and thus never incur any charges or penalties or accrue any debt. It's that simple!


Spend money on credit or debit?


If you are spending money in cash or on a debit card then you are missing out on all sorts of benefits. Spending on credit cards as opposed to any other medium gives you added protection on your purchases. There is a little know agreement between you and your credit card company such that if there is damage to good, or the goods are not up to a sufficient standard then you have protection from your credit card company such that in many instances they will cover any losses.

The brilliance of a credit card is that many credit card companies will pay you cashback or offer you exchangeable reward points (and what do points make...) just for spending on the card. I receive 1.25% cashback on all my spending. Furthermore, there was a 3 month bonus period when I first got the card when I received 5% cashback. That's £5 in my pocket for £100 that I would have spent anyway! I have already built up £110 in cashback for which I expensed no extra effort to obtain!


Credit cards delay cash outflow


Finally credit cards allow you to delay your spending by up to a month (since the direct debit will come out of your account only once a month). This has a small but brilliant effect of allowing you an extra months interest on your account!

So credit cards are good! Credit card debt is bad. Make sure you pay off the debt in full each month. Make the process easier through direct debit. Don't spend past your credit limit or else you will incur charges. Always make sure that you have the money in your account already before spending on a credit card. Follow these simple rules and you can have a credit card.

In fact, follow these simple rules and then definitely get a credit card.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

Win £100,000 - How would you spend it?

If you won £100,000 how would you spend it?


£100,000 is by no means a lifechanging amount of money but it should certainly help!

Spending £100,000 seems to me to be totally determined by your circumstances.

What I would do with £100,000


For instance, in my personal circumstances, I am a renter and do not yet have the funds I need to put a sizeable deposit on a flat. £100,000 would probably be a 30% down payment on a £250,000 allowing for all related fees and furnishing costs. The sizeable downpayment will significantly improve my cash flow as I will be borrowing £150,000 at a very competitive rate, given that I own a decent percentage of the property. In theory I could get a 3% mortgage (assuming interest rates remain as low as they are currently). This would mean that I would pay about £375 per month in interest plus the repayment of the principle.

Alternative uses for £100,000


However, you may be in a different position to me. You may already own a house. In which case you may want to invest the money to generate an income, buy an investment property, top up your pension, help your children onto the property ladder, and so on and so forth.

So, what would you do if you won £100,000?

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

How to get out of a parking ticket

Getting out of a parking fine


I recently incurred a parking ticket. The charge was £110! However, the council kindly offered to halve it to £55 if I paid within 14 days. Not only is it an irritant to have to pay but it really messes up my finances in terms of budgeting for that month. I certainly wasn't planning for a £55 fine!


Dealing with the parking fine


Do NOT pay the fine immediately!

The first step is to accept that you will probably have to pay for the fine. As such, you should update your spreadsheet to include the cost as if you have already incurred the charge. This'll make you feel a whole lot better already! I promise!

The second step is to make a note of when the 14 days are up - you certainly don't want to have to pay £110! Also make a note as to when you want to act. I would advise that you set a reminder on your phone to "deal" with the parking ticket in 10 or 11 days time.

After 10 or 11 days, challenge the parking ticket - regardless of whether or not you think you deserved the fine. There is nothing illegal about challenging the penalty even though you actually caused an offence - just don't lie in your challenge. The purpose of challenging the ticket is to freeze the parking ticket. The council will then take time to review the ticket and send you a letter in the post/ email to tell you if your challenge was successful. Then if not successful, the council will allow you another 14 days to make the payment. You have automatically managed to delay the fine helping your cash flow. You may manage to push the fine into next months finances, in which case you can plan your spending for that month around it. Alternatively, you can use the time given to make some extra money/ mentally put aside the money for the parking fine.


Challenging a Parking ticket


There are a couple of important things to remember when dealing with a parking ticket:
1) don't lie. This could land you in very big trouble if caught.
2) try to keep it relatively short. The council will read many challenges a day. Try not to waste their time. You want them on your side.
3) admit that you were in the wrong if you were actually in the wrong. Most people like to blame other people/ things. Don't be like most people. Stand out to the person reading your challenge. Start off your challenge with this sentence:
"I'm a complete idiot. I am so sorry for parking there...(insert reason for your stupid mistake)"
4) be humorous. Remember the reader will get bored. Keep them interested and on your side. I recently managed to get myself off a fine (legitimately) where I was in the wrong. I had parked in a pay and display bay without even realising it. In my challenge I admitted my mistake and apologised profusely. I went on to explain what a wonderful evening I had enjoyed, blissfully unaware of my impending shock  once I returned to my car. I included various silly details such as the meal I had enjoyed etc. But keep in mind rule number 2!

It is possible to get out of paying for parking fines even when you are in the wrong. The above guidance will in no way guarantee success but it will give you a chance and provide you with time in the meantime.

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

John Lewis Giveaway Winner Annoucement

Congratulations to Rebecca Lacy who is the winner of our £50 John Lewis Competition.

Enjoy the shopping trip!

Thank you to all those who took part!

Do you like what you've read? Tell your friends by sharing it with one of the buttons below. Please post this to Facebook or Tweet it to help your friends and family. Feel free to send me an email (mrmoneybanks<at>multimillionaireroad<dot>com), find me on twitter @millionairer0ad or comment. Whether good or bad, I want to hear from you all.

Disclaimer

Information on this site is not appropriate for the purposes of making a decision for carrying out a transaction or trade nor does it provide any form of advice (investment, tax or legal) amounting to investment advice, or make any recommendations regarding particular financial instruments, investments, or products.
Always seek advice of a competent financial advisor with any questions you may have regarding a financial matter