CCJ's
Using FLM Loans to deal with your debt
Many people apply for FLM Loans for the purpose of debt consolidation- to put together a number of smaller and more expensive forms of credit into one easy to manage payment. Whilst FLM Loans are flexible and can offer the ideal way to deal with small debt problems very often extra borrowing can lead to more problems further down the line.
FLM do everything that we can to ensure that applicants will not have problems meeting repayments on our loans. Unlike many companies we look at banking patterns as well as credit file and employment history for both the applicant and the guarantor.
If you are considering applying for an FLM Loan because of Debt Problems that you already have it may pay to look instead at resolving the reasons why you got into debt before taking out further credit.
Reasons for Debt
There are lots of reasons why people get into debt. It may be because of an unexpected change in circumstances or because of:
- Illness
- Disability
- Unemployment
- Bereavement
- Borrowing too much money
It is important to recognise the reasons why you are in debt. You need to recognise the symptoms so that you can understand how to help yourself out of debt, or how a money advisor could help you work through your problems.
The most common forms of debt include:
- Credit card debt
- Personal loans with finance companies
- Bank and Buildings Society loans and overdrafts
- Charge cards/store cards
- Catalogues
- Personal debts to friends and family
- Credit sale agreements
- Student loans
- Mobile phone debt
The crucial issue to dealing with debt will always be to ensure that your spending is less than your income rather than more. Whilst Loans like the FLM Loans products advertised on this site are suitable for a wide range of purposes and will give you the short term flexibility to allow you to pay for the things that you need immediately, FLM Loans will not be able to provide you with long term financial stability. That will only come from being able to control outgoing spending and expenses.
20 tips for avoiding and dealing with debt:
- Check whether you’re entitled to any additional benefits such as Job Seekers Allowance, Maternity Benefit, Income Support or Working Family Tax Credit.
- Check whether you’re entitled to any help with rent or Council Tax.
- Cut down on the usage of electricity by not leaving appliances on stand-by. Switch off lights when not in use. Lower thermostat on radiators to reduce heating costs.
- If you are unemployed or unable to work through illness check if you have payment protection insurance on your mortgage, loans or credit cards, you may be able to have your payments made for you.
- Supermarkets own brands can often be just as good as the well-known brands but cheaper.
- Shop once a week and plan your food. Preparing packed lunches could save around £50.00 per month. Freeze left over food and re-use.
- Cut down on eating out and take-aways.
- Drive a small economical car and save on insurance, tax and fuel.
- Instead of using the car for short journeys, consider walking, using a bike or public transport. This will save a surprising amount of money while also improving your fitness and health.
- Use your local library for books, CDs, DVDs and videos.
- Enjoy family activities that don’t cost money. Museums, galleries and parks are free and make great days out.
- Don’t browse around shops and stores, make a shopping list and stick to it.
- Try to cut down on cigarettes or, if you can, give them up completely.
- Sell unwanted items in the local classifieds or on the internet - many newspapers offer free advertisements.
- Cut down on nights out, drink alcohol in moderation.
- Look how to gain study grants. You may be able to study part time to improve your prospects while you work.
- Research childcare in your area. There maybe council/church run nurseries and sometimes grants are available. Use family whenever possible for baby-sitting.
- Check for better work opportunities closer to home. Consider the additional costs of your job e.g. childcare, travel time and expense.
- Reduce monthly subscriptions to mobile phones, internet and Sky television.
- Take holidays at off-peak times and choose less expensive packages e.g. self catering.
The following agencies offer help and advice on this issue
- Citizens' Advice Bureau deal with money advice and debt problems. Many CABs employ specialist money advice workers. You can find your local Citizens' Advice bureau on their website or in the local telephone directory.
- Money Advice Scotland can give you details of your nearest money adviser. Their website is listed in Helpful Links
- CCCS (Consumer Credit Counselling Service) Free telephone number 0800 138 1111 open 8am to 8pm Monday to Friday
- The National Debtline can give free advice and provides information packs on dealing with debt. The lines are open from 9am-9pm Monday to Friday and from 9.30am to 1pm on Saturdays. The National Debtline phone number is 0808 808 4000 and the website address is listed in Helpful Links.
