The 7 Biggest Financial Mistakes We Make

March 6, 2010 - PRLog -- In fact, our personal debt habits are so deeply entrenched in tradition that we might almost employ a personal shopper to sort out perhaps another credit card, a debt consolidation loan, an IVA, or worst of all, bankcruptcy.

But what does it really all mean? Citizens Advice Bureaus’ in Scotland alone will tell you that one in ten clients have debts of more than £50,000 with amounts owing ranging between £100 and £239,346 (excluding mortgage debts). Overall UK debt is ballooning with over 400 people today being declared insolvent or bankrupt and 1 person is currently entering into an Individual Voluntary Arrangement (IVA) every 3.5 minutes.

These are the 7 biggest financial mistakes we make:

1.   We underestimate our outgoings against our incomings – plain and simple.

2.   We believe that financial institutions are there to help us. Wrong. They are there to help themselves. The past couple of years should tell you that.

3.   We don’t challenge any lender for a better deal even though our bank rate has never been lower.

4.   We don’t read the small print. Ever. Go to the free report on credit card repayments at the end - they may horrify you.

5.   We assume that IVA is the only way out – it might be if we are gathering CCJ’s at a rate of knots.

6.   We don’t know about legal and total DEBT REMOVAL. Yes, you could legally lose your debts by challenging your lender.

7.   The biggest mistake and irony of all.... We have never heard of it! We believe newspapers reporting the alleged difficulties in challenging the banks in court and writing off our unfair or unenforceable credit agreements. (Caveat Emptor: Did you know that newspapers biggest advertisers who help pay their journalists wages are, erm... banks.)

These are the 7 deadly sins and this is why our personal debt is spiralling out of control in the UK.

“It doesn’t have to be this way when there is the consumer right to legally challenge a potentially unfair credit agreement,” says Clare Lewis of LegallyLoseYourDebts.Com, a UK Claims Management Company that is regulated by the Ministry of Justice.

She continues, “When the British government introduced the Consumer Credit Act 1974 into law it was there to provide people with specific consumer rights and to protect them from lenders. The Consumer Credit Act sets down very strict guidelines for the exact content and format all Credit Card, Loan and other Financial Agreements that all lenders must use and The Consumer Credit Act 1974 states that if a lender provides credit using a written agreement that does not fully comply with certain parts of the Consumer Credit Act, it becomes unenforceable."

Even barristers such as David Berkley QC state that, “Laws are there to protect consumers and so there is in my view a core legitimacy to the market of supporting borrowers, particularly in the present economic climate.”

“At Legally Lose Your Debts we provide a service which issues the debtor with a proper audit of their credit agreement and if it is found to have potentially unfair issues it will be taken on by our team of lawyers with full ATE insurance funding to pursue the case through the British courts.” Says Clare, “Often a lender will settle out of court to prevent the floodgates of claims opening up to them and we have seen it happen time and time again.”

For more information go to www.legallyloseyourdebts.com and learn the truth that no lender wants you to know.

For a free report on the UK debt mountain click on http://www.legallyloseyourdebts.com/llyd_free_report.pdf

You could legally lose your debts.