Getting On Top Of Your Finances With Scotland’s Trust Deed

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Introduction

Let us be objective; occasionally we get into debts that we cannot pay back with our current income. It piles up and before long; the debt burden is too huge to bear. That is the time you wish for the earth to burst open and swallow you. But it does not work that way with debts: they always have to be paid back to the last coin.
However, Trust Deed Scotland can give you a new lease to financial freedom and stability. It could be the debt management plan you need to find your way back to financial sanity finally.

Why trust deed could be the way out for you

22.mblkmgkljl;kOnce you are deep in unsecured debts, resurfacing to financial stability may be a big challenge. But with a trust deed, this one is no longer an impossibility. It could be achieved as long as you pass the legibility test.

But why would you opt for this plan to manage your debts? Sometimes you do not have any other alternative. The reasons below would explain more.

You get a chance to manage all your debts from one central point

Having to deal with each debt on its own will further complicate your way to financial recovery. Every debtor will be on your back, and you cannot have a good plan for your income. But once you are in the trust deed, all your deeds are managed from one central point. No more calls from debtors since your insolvency practitioner (IP) has everything taken care of.

  • You will be paying what you can afford

Without this debt management plan, you are expected to pay up your debts to the last coin. It does not matter whether you will be left with anything for your living costs or not. But now you will only pay your debts with what remains after your costs of living. Nobody will be dictating to you some installments you have to pay. In a way, you are in control of how much you pay for your debts.

  • Portions of your debts will be written off

The debt payback period is usually four years with room for extension. Once the period is over, your remaining debts are written off. You get a clean financial slate. From there you can bring some sobriety to your financial management and avoid similar occurrences.

  • It gives you back control over your assets

33nbjgnlklj;With mounting debts that you cannot pay back, your assets will be at risk of being sold to recover the debts. But with the trust deed plan, you regain significant control over what belongs to you. Now that is what you would want in your endeavors to regain financial ranking.

For those in Scotland and do qualify for the trust deed, this could be financial gift. It could be the one final chance for you to put an end to your bad debts. As long as you can learn a few lessons from this, it will be helpful that you will not be making the same mistakes in the future.

Direct Debit – What Makes It Unique And Different From Debit Cards?

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Introduction

It would seem that banks are regularly coming up with new ways for us to conduct our financial transactions. From the paper checks and credit cards to the ATM cards, debit cards, and ACH electronic transfers, we’ve always had reliable means of paying our bills and transferring our money. Of course, with each new method comes a special set of regulations and fees passed on to account merchants and holders.

A smart businessman or an account user will know how to fully take advantage of any new system. But to do that, they need to know the characteristics and the features of a certain system. The purpose of this article is to cover the direct debit system, which has quickly become one of the most popular payment systems in the world. Therefore, if you are not quite familiar with it, stick with us. Additionally, you could also check Debit Direct, if you need a good direct debit advice or some extra info.

The basics of Direct Debit

22nbklkljfkThis payment method is undoubtedly one of the easiest methods of deducting a payment straight from a user’s bank account. While it is based on a premise of a paper check, it takes it to a whole new level, thanks to its electronic means of transfer. Simply put, with a direct debit, you will not have to write paper checks ever again. Your clients and customers will simply give you the permission to collect your debts and payments by taking funds directly from the savings or checking accounts and transferring them to your account.

Typically, direct debit is used for regular transactions or auto-recurring billing, such as energy bills or monthly rents. With it, a customer does not have to write checks each month, and they only have to provide a single written permission to allow funds being withdrawn from the account.

Key differences between a Direct Debit transaction and a Debit Card Transaction

Now, since Direct Debit and Debit cards function similarly, you might be confused as to what are differences. Each method authorizes a money transfer from the user’s account and, from a customer’s point of view, they are the same.

However, from a business’ point of view, they are quite different. The transactions themselves are conducted via different networks, while the processing charges are also different too.

Debit card

A debit card transaction will require a business owner to obtain a special business account and to sign a long-term contract. Additionally, they will be required to pay a certain fee to open an account. These transactions are typically processed via the same network as credit card ones, and deposited to a business owner’s account, but without a flat commission. This lack of a flat commission is also known as a discount rate, which is usually lower as opposed to credit card transactions.

Direct debit

33kjdgjrjhOn the other hand, the Direct Debit method utilizes the ACH (Automated Clearing House) network, to move funds from one account to the other. With it, you can also use your standard business checking account too. But first, you will have to sign a contract with an institution that will manage the ACH transactions. In most cases, this is not a long-term commitment. There is not an initial fee, but you will have to pay a fee for every transaction. Fortunately, this is usually a flat fee, which is quite low and which does not depend on the size of the transaction.

Tips On How To Apply For Cash Cards

With the advancement of technology, everything can be done online. This includes the application of cash cards. Umay Plus cash card application  is as easy as entering your details and filling an online form. However, it takes a lot to get your cash card approved. Here are ways you can apply for a cash card and get it approved.

Knowing your credit core

Before a cash card company decides to issue you with a cash card, they will first have to put your credit score into consideration. Different banks classify peoples’ credit scores differently based on different factors. Therefore, if you know that your credit history is not that good, it is advisable that you put it aside for sometimes before you can apply for a cash card. In the meantime, you can do things that will make your credit score to rise. You can start by ensuring that you make your payments on time, avoiding new debts and ensuring that your balances are low on your current credit cards.

Reduce your debt

Do you know that banks use 30% of how much you owe to determine your credit score? This means that if you have high credit balances, you will have low credit scores. Your credit utilization ratio should also be below 30%. The credit utilization ratio is the ratio of your balance to your credit limit. If you want to lower your credit utilization, you will have to ensure that you lower the balance on your credit card. You can do this by paying down all your credit balances.

Avoid first offers

Having a low credit score means that getting approved for a large sign-up bonus will be difficult. You should, therefore, avoid applying for credit cards if you are not sure you will qualify. This is because each application will be reflected on your credit report. You should only apply for a card with offers that you are sure fits your credit profile.

Show your income

Although your credit score is used to determine whether you qualify to be issued with a cash card, still, lenders need to know your income. Your income is very important to card companies and banks since they use it to determine your debt-to-income ratio. To increase your qualification for a card, you need to lower your debt-to-income ratio. You can do this by increasing your income or lowering your debt.