Category Archives: Money

We’ve all heard the phrase “money can’t buy happiness,” but when it comes to your financial health and well-being, money is an essential element. You could be struggling with your finances, or you might want more guidance on how you can manage your budget in a healthy way, so I’m going to share some tips to help you tackle your debts.

The 4 Steps You Need to Take Towards Getting Out of Debt

Debt can be a massive financial burden, and sometimes it might seem easier to pop on your blinkers, and try to carry on with life as normal, without addressing the issues. However, debt will never ever go away on its own, so it’s important to address the debt and issues head on, and you can take steps to help you get rid of debt, and move you one step closer to financial freedom.

Stop spending more than you earn – it’s important you make yourself a budget planner, where you can jot your incomings and outgoings, to work out how much you’ll be able to spend each money. Try and minimise your outgoings as much as possible, and try to put any excess money each month into a savings account, which you can put towards paying your debts off.

Avoid buying anything on credit – Buying things on credit feels easy and convenient, but you’ll always have to pay off whatever you put on credit, plus the interest and fees. It’s easy to let your debts get out of hand, so always think about the bigger picture whenever you want to use credit for non-vital purchases.

Always pay on time – One of the quickest ways to spiralling debts, is paying late or not paying at all. All companies will charge you a late fee at the very minimum, but some then charge you for having to send out a letter to tell you’re late, as well as charging excess interest rates once you’ve missed the payment date.

Speak to your creditors – If you’re in a financial crisis, it’s important to communicate with your creditors to keep them in the loop. It’s not going to make your debts disappear, but many will have procedures in place for those that are struggling, such as a payment holiday, or a freeze on interest for a short period of time.

Everyone has a budget, but many people have a hard time putting it into practice. This is because they’re not sure where to start, and what to prioritise, but starting today is important, and there’s lots of information online to help you with tackling your debts.

We’ve all heard the phrase “money can’t buy happiness,” but when it comes to your financial health and well-being, money is an essential element. You could be struggling with your finances, or you might want more guidance on how you can manage your budget in a healthy way, so I’m going to share some tips to help you tackle your debts.

The 4 Steps You Need to Take Towards Getting Out of Debt

Debt can be a massive financial burden, and sometimes it might seem easier to pop on your blinkers, and try to carry on with life as normal, without addressing the issues. However, debt will never ever go away on its own, so it’s important to address the debt and issues head on, and you can take steps to help you get rid of debt, and move you one step closer to financial freedom.

Stop spending more than you earn – it’s important you make yourself a budget planner, where you can jot your incomings and outgoings, to work out how much you’ll be able to spend each money. Try and minimise your outgoings as much as possible, and try to put any excess money each month into a savings account, which you can put towards paying your debts off.

Avoid buying anything on credit – Buying things on credit feels easy and convenient, but you’ll always have to pay off whatever you put on credit, plus the interest and fees. It’s easy to let your debts get out of hand, so always think about the bigger picture whenever you want to use credit for non-vital purchases.

Always pay on time – One of the quickest ways to spiralling debts, is paying late or not paying at all. All companies will charge you a late fee at the very minimum, but some then charge you for having to send out a letter to tell you’re late, as well as charging excess interest rates once you’ve missed the payment date.

Speak to your creditors – If you’re in a financial crisis, it’s important to communicate with your creditors to keep them in the loop. It’s not going to make your debts disappear, but many will have procedures in place for those that are struggling, such as a payment holiday, or a freeze on interest for a short period of time.

Everyone has a budget, but many people have a hard time putting it into practice. This is because they’re not sure where to start, and what to prioritise, but starting today is important, and there’s lots of information online to help you with tackling your debts.

Negative equity is the term given to the situation where an entity owes more on its loans than it has in assets to cover the debt. It’s essentially a company that’s got too much debt, which can be problematic if not addressed quickly.

To build liquidity, negative equity needs to be reduced or removed. For example, if you have a mortgage loan for £100,000, and you owe £110,000 on your property then this would be considered negative equity.

Different Types of Negative Equity Situations

When it comes to negative equity, many people are confused about what exactly it is. Negative equity is when you owe more on your loan than the house is worth. Negative equity can happen for a number of reasons, including:

• Rising interest rates
• An unexpected decline in property values
• Heavy renovations or improvements that add more to the value of your home than originally planned

The most common negative equity situations are:

Disposable Income Negative Equity – When income falls below the level needed for debt payments, even though asset value has increased, the borrower’s disposable income decreases causing negative equity.

Partial Asset Negative Equity – When annual income falls below the level needed for debt payments and only some of an asset’s value has been paid off, it is said to be in partial asset negative equity.

When Should You Start Worrying About Negative Equity?

It is not a question when it should be a concern, but when you should start to worry about your property’s equity. It’s important to know the difference between negative and positive equity because you could lose money in the current market. Negative equity refers to when your property’s value has dropped below the amount that it costs to rent or own it.

There are three main reasons that negative equity may happen:

1) You are no longer able to afford the mortgage payments

2) You are renting out your property on Airbnb or other short-term rentals, which reduces its true rental value

3) The market changes and makes your investment less valuable

Negative equity can add to your already high mortgage payments and create a lot of financial stress. It’s important to pay down this debt while it’s still manageable, so that you’re not stuck in a situation where you owe more than the house is worth, so it’s a good idea to get professional advice from a specialist, who’ll be able to help you put a plan in place to tackle your negative equity.