Refresh Money

Irish consumers still struggling to pay off Credit Card debt

Noel — Thu, 10 May 2012 08:41:14 +0000

New findings have shown that the average Irish consumer still owes €1,274 on their credit card. This means that people inIrelandnow owe €2.5bn on personal credit cards. This shows that many people are still struggling to pay back their debt. These figures show that people have only reduced their credit card debt by €41 in the last year due to high interest rates being applied. The worst rates in Ireland at the present are 22.7% and in comparison the best rates are 13.6% which proves you can save money if you shop around for the best deals. However, even if you got the lower end interest rates it would only take 5 months less to pay off the average debt of €1,274.

Credit card debt is one of the most expensive forms of debt which will continually increase with interest if you don’t pay off your full balance. However, at Refresh Money we understand that there are more important bills that must be paid before you can pay off your unsecured debts, i.e. mortgages, electricity, gas etc. That’s why we are here to help you. We can offer you a debt management plan. When you phone 1890 987 857 one of our trained advisor’s will be able to take your details and design a plan that you can afford. Our client liaison officers will then contact your creditors and negotiate lower monthly payments and reduce or stop the interest – therefore you pay your debt at a faster rate. Furthermore, any letters you receive you can send to us at Refresh Money and we deal with them for you.

If this sounds like something you would need and like in your life, phone 1890 987 857 or fill in a contact form and start your journey to becoming debt free!

Increase in Mortgage Arrears

Noel — Mon, 30 Apr 2012 13:43:46 +0000

It has been confirmed that the number of Irish people who are in arrears with their mortgages has risen again. These new figures show that, in the last 3 months in 2011, the number of people falling behind with their payments increased again. These statistics have been publicized by the Central Bank. The bank said that 70,911 residential mortgages, which represent 9.2% of the total amount of residential mortgages, were more than 90 days behind. This has increased from 62,970 or 8.1%. More than 53,000 of those in arrears were more than 180 days behind with their payments. These arrears total more than €1 billion. Furthermore, the Central Bank has confirmed that there are more than 36,000 Irish people that are struggling to pay their mortgages and have been negotiating their repayments to make them more manageable. Another 37,582 mortgage accounts which have already been restructured are also in arrears in some way. This brings the total to 107,708 mortgages, that were either in arrears or had been restructured, which is up from 99,346 at the end of September. There have also been a total of 109 repossessions orders ordered between October and December.

It is clear to see that with the rise in unemployment and with the rising cost of living, people are struggling and their mortgage repayments are being affected. If you are struggling to pay your mortgage, we may be able to help you. If you have unsecured debt that you are also struggling to pay back – we may have a solution. At Refresh Money, we contact your creditors and negotiate lower monthly payments which will free up more money for your other outgoings. We can also reduce or stop interest – therefore you will be paying your debt off at a faster rate. Once you are on a debt management plan, more of your disposable income will be available to help you and your family in these hard times. Phone today on 1800 987 857 and speak to one of our advisors to see what we can save you.

Spring Clean your Finances

Noel — Wed, 18 Apr 2012 13:39:38 +0000

Spring, for many people, means a time for change. Thus many people have a ‘spring clean.’ So why not also do this to your finances? If you are struggling with debt and don’t seem to be making ends meet every month then you may be in need of a debt solution.At Refresh Money we can offer you a solution that can help you become debt free.

One solution is a Debt Management Plan. One or our trained advisor’s will be able to take your details and design a plan that will free up more money for the essentials in your life. Our client liaison officers will then contact your creditors and negotiate lower monthly payments and reduce or stop the interest – therefore you pay your debt at a faster rate. Furthermore, any letters you receive you can send to Refresh Money and we deal with them for you. We can also stop the annoying phone calls.

Our highly trained staff can help and guide you with any worries you may have concerning your debt. Let Refresh take the stress away – phone 1890 987 857 now, or fill in a contact form, and receive your FREE Debt Health Check today!

Credit Card Debt Help

Noel — Mon, 05 Mar 2012 09:51:34 +0000

As you will be aware, almost everyone seems to offer credit cards today. These providers range from Supermarkets to Airlines. Applying for a card is simple. All the provider needs to know is a few simple facts about you, i.e. where you live, how much you earn etc.then they will complete a credit check.Once this is complete, depending on the results, your credit limit will be calculated. These limits may seem modest at the start; however, they can dramatically increase these over time. The provider will also then stipulate a minimum monthly repayment plan. This tends to be 5% of the outstanding balance on the card. The outstanding balance on the card then begins to gather interest and the overall debt can increase very quickly. Providers may also charge for other services, i.e. balance transfers, withdrawal from ATM etc.

You will realise many organisations want to give you a Credit Card which may seem like free money, however it isn’t and you should be aware of all the facts before you sign any documentation. If you are already in debt, a credit card is not for you. Borrowing money to pay back money is not a solution. However, if you do decide to get a credit card, here are a few tips to help you on your way:

- Always read the fine print…you never know what nasty surprises may be lurking in it.

- Understand the Introductory rates…they are just that, introductory!

- Look for the best interest rate…In the long term, how much interest will be added

- Always try and pay more than the monthly minimum…only paying the minimum will get you nowhere. Interest will mount and the debt will increase very quickly.

- Always try and make a payment…If not you will be charged a missed payment fee which could be costly!

- Don’t exceed your monthly limit…Otherwise you will face an over-the-limit charge which again could be very costly!

If you are struggling with Credit Card Debt and would like help and advice on how to get out of debt, Phone Refresh Money today and one of our highly experienced Advisor’s will be able to help you. 1800 987 857

Store Cards Debt Help Ireland

Noel — Mon, 05 Mar 2012 09:28:30 +0000

Store cards have been known in the past as the “Devils Debt”. The majority charge a hideous 25% plus interest which is worse than the average high street credit card. A Store card is similar to a credit card in that you can use them to buy goods and services and then you can choose to pay off the whole balance or via monthly, smaller amounts. Some retailers offer you interest free cards as long as you clear your balance within a certain period of time. You have to be careful with these deals because if you don’t pay on time, you could find the interest back dated to the day you purchased the item. Store cards are very dangerous also to young people and vulnerable people as they are easy to obtain and can be hideously expensive.

Their high rates – Around two thirds of the major store cards on the market charge over 25% interest, some are nearly 30%. This is a huge amount, massively more than a standard, never mind competitive, credit card.

They’re commonly missold – These cards are often pushed on us by untrained shop staff, who’ve little idea of the impact and associated dangers of such a high interest rate card. They’re simply told to flog them and usually receive a bonus for signing people up.

They’re targeted at the young – This is the first piece of credit many young people get. Store card providers must love debt illiterate youngsters: they’re an easy target and often spend on these cards without understanding how to manage them, racking up expensive, unaffordable debts.

They charge us more and get our business - With these cards the stores guarantee that we spend on them in their shops. Yet to do this they charge us more even than a credit card. Logic would dictate it should be cheaper, as it is guaranteeing them custom and more spending in store.

So before you get a store card this year, make sure you know the ins and outs of the terms and conditions and try not to ever overspend as you always want to pay off the debt before it is too late.

Debt Management Plans Ireland

Ashley — Thu, 01 Mar 2012 14:35:15 +0000

If you are currently struggling with Debt, it is sometimes hard to know who to turn to. Many people feel judged when they talk about their debt, however, they don’t realise the majority of people in Ireland are currently in debt. You should make sure that you have somebody to talk to otherwise being in debt can seem very lonely and daunting to face on your own. Refresh Money is a good Debt Management Company in Ireland and is a family run company who can offer highly experienced and knowledgeable advisor’s. Once you phone Refresh Money, an advisor can offer you free advice and create a unique Debt Management plan to suit your needs and requirements. If a Debt Management Plan isn’t for you, we can also advise you on the other Debt solutions offered. For a good Debt Management Plan, we will go through the debt you owe, and to whom, the amounts you owe and your income and expenditure. Our Advisor’s will then calculate how much you can afford each month. This plan will then be sent to your home for you to read over and make up your mind if you would like to start the plan or not. (You are not obliged to take out the plan if you are not happy with it.)

If you do decide to commence with the plan, you will then be assigned your own personal Client Liaison officer. They will then deal with your creditors on your behalf throughout the duration of your plan. Your client officer will also do the negotiating to try and lower your monthly payments and your interest rates. If you ever have any problems or contact from the creditors, all you need to do is phone Refresh and speak to your client officer. They will then try and sort it out for you so you will not be contacted anymore.

We do all this to try and ensure that you do not have to deal with your creditor which, in turn, relieves the stress and worry off of your shoulders.

If this sounds like something you would like in your life, Phone us today on 1890 987 857 or fill in a contact form on the website for a call back. It will only take 10 minutes.

You’ll wonder why you haven’t done it sooner!

Government to Help with Personal Debt Levels

Ashley — Thu, 23 Feb 2012 16:24:33 +0000

Throughout the financial crisis one thing has set Ireland apart from the other countries in financial difficulties and that is the levels of Personal Debt. The countries debt and banking debt has been dealt with and now it is time, claims the Government, to deal with the vast levels of personal debt. The Taoiseach Enda Kenny has also recently angered many people by claiming that the easy access to credit had spawned “greed to a point where it just went out of control completely with a spectacular crash”. However, this statement can be argued to be correct as the country would not be in such high levels of debt if people didn’t borrow as much.

One way to look at the levels of personal debt in a country is to put it as a percentage of Gross Domestic Product. At the end of the second quarter in 2011 Ireland’s debt stood at 124%. The average for a mature economy is 77%. Whilst in some respects Ireland is performing much better than other troubled countries, the levels of personal debt are in a league of their own.

Countries personal debt to GDP ratio

Ireland 124%

Greece 66%

Portugal 99%

Spain 82%

Italy 45%

However, these ratios don’t paint a proper picture of reality which has seen at least 30,000 people landed with unsustainable mortgages and five times that number struggling to make ends meet each month.

The Shatter/Noonan Personal Insolvency Bill proposes a number of steps which should help some of these people. It cuts the bankruptcy period from 12 to three years and introduces three voluntary debt-settlement systems, which will offer people ways to sort out their finances outside of formal court insolvency.

Some organizations are not too pleased about this as they feel too much debt it going to be written off and mortgages could have cuts. But something dramatic needs to be done to help the economical recovery ofIreland. It’s an easy theory really: the less people struggle with debt = the more money freed up to spend in economy = growth and stabilization.

If you are struggling with your debts and can not seem to make ends meet, maybe a Debt Management plan could help you turn your finances around. At Refresh Money we help you lower your monthly outgoings without borrowing more money. Our Liaison officers contact your creditors on your behalf to take the stress and worry out of your life. They also try and reduce or stop interest rates so you are paying off your debt quicker. A recent client came onto plan and was paying €100 per month, however €80 of this was interest and only €20 was coming off the bill every month. This prolongs the repayment process and ends up costing you a fortune in interest payments. We can lower the interest so your debt is repaid quicker. Phone us today on 1890 987 857and in just 20 minutes our advisors could have a unique plan created for you and your needs to help you on your way to a debt free future.

Negative Equity Homes Bail out

Ashley — Wed, 15 Feb 2012 14:20:53 +0000

Two large Banks inIrelandhave now been cleared to offer their existing customers a lifeline if their homes are in Negative Equity. Negative equity means that their property is worth less than their outstanding mortgage, so even if they sell their homes, they will still owe money to the bank. The major lenders, Permanent TSB and Bank of Ireland, have gained permission from the Central bank to offer this new type of home loan. It will therefore mean that the negative debt will be ‘moved’ to a new property with them if they decide to move. It may also kick start the depressed housing market as people won’t be stuck in their homes that are worth less than the amount they originally borrowed as they can take their debt with them.

More than half of current mortgage holders are stuck in some form of negative equity debt which means that currently, no lenders will borrow them money and they can’t sell and move. However, to ensure there are not more and more people getting deeper into debt, this offer will only be available to people who can clearly keep up their payments. There will also be strict limits on the amount of negative equity that can be carried on. Other lenders across the nation will also be watching to see how the scheme progresses.

A spokeswoman for the Bank of Ireland has also explained that they will only approve mortgages where homeowners ended up owing 25% more than their new property was worth. E.g. someone buying a new home for €200,000 would take €50,000 of negative equity on to the new mortgage.

Do you believe that this new offer is a good idea or do you think that this will make people have more and more debt that they can not get out of? Is there any other way that the housing markets could be improved at this time? Leave your thoughts and comments below.

Would you swap your Pension for a Debt free future?

Ashley — Fri, 10 Feb 2012 12:31:26 +0000

An offer that was rejected last year is now being reconsidered: People who have retirement money built up in a fund should be allowed to take some money out before retirement is it is used to pay of debts that they can not pay back otherwise. The Finance Minister, however, is not keen on the idea. It is felt that more and more people will then be claiming off the state for their pension which will drain the taxpayers in the future. This problem will only intensify if people are allowed to ‘dip’ into their retirement funds earlier. Another drawback is that the one thing many look forward to after working hard for the majority of their lives, is a financially secure future. This could be taken away if they need to pay debt off out of it. However, many agree with this offer as they feel that they would prefer to pay off their debts, get creditors off their backs and then start saving for the future – debt free. People are now also claiming that the Government is not keen on helping people to help themselves as they are too focused on dealing with its own debt.

What do you think? Do you agree or disagree with the thought of being able to take money out of your retirement fund to pay off debt? Leave your comments below.

Get out of Debt Ireland

Ashley — Tue, 31 Jan 2012 11:05:56 +0000

Everyday at Refresh Money, we are asked how to get out of debt. People around Ireland are always trying their best to try and save a few extra euros. The best advice I can give you is this: you need to change the way you spend! Here are a few simple tips to get you going:Tip 1: Why not write down all of your income and expenditure. This helps put spending into perspective. It will also make it easier to see what areas you are spending too much in.

Tip 2: Use comparison sites to choose what companies you want to go with for your bills, i.e. electricity, gas, insurance etc. You could really save a lot of money as you may be currently on a high tariff with an expensive company and you don’t even know it. All the extra money you save could be put towards getting out of debt.

Tip 3: You can also change supermarkets and maybe try supermarket own brand. There have been tests where people have been blindfolded and given branded and own branded food. Guess what? The own branded food has actually been voted tastier on numerous occasions. This tells us that maybe preconception is causing us to spend more.

Tip 4: Ever heard of Groupon? There are many sites that now offer luxuries for cheaper. Sign up to a discount site and see what you could start buying for less. You’ll be surprised. Just because you are in debt doesn’t mean you cant enjoy yourself!

Tip 5: Have any Loyalty cards? You should sign up to some as they can be very rewarding if you are spending in that particular store over and over again.

So why not try and save money today from your very own home. If you have any other tips on how to save money and get out of debt please leave a comment below!