This cash could be used on stuff that doesn’t accept credit cards, which is another great advantage. Unfortunately, this is not just free money handed to you. The disadvantages of cashback is that it will probably end up costing you a lot more than the cash you initially took out. You may be charged a fee and high interest rates when you use the cashback option. Make sure you check your credit card company terms before you decide to get cashback. If you are careful and know the terms, then this may be a great option for you when you need cash fast. However, try not to use this option too often.

The obvious question to ask yourself is whether you can increase your income and reduce your expenditure, perhaps there is something you can sell that will raise the necessary cash, but it is likely that you have been there already and you have found that the solution doe not lay there.

The first thing you need to do is to decide on which debts are the most important ones, that is those that if you do not maintain will result in serious difficulties. Examples of these debts are mortgage repayments and rent, utility bills for water and energy, any form of secured loan, for instance a car loan, child maintenance payments, any court fines, council tax bills, telephone bills, and insurance on your home and car. The consequences of not paying these bills range from losing your home to being sent to prison.

The dents that are not so important to repay are credit and store cards, bank overdrafts, general unsecured loans and catalogue purchases. By not servicing these debts you do not risk the dire consequences of not servicing the propriety debts, but you will see a severe impact on your credit rating.

It is important that you talk to the lower priority creditors that you can’t afford to pay and explain to them your circumstances. It is better to be proactive than reactive, and never promise to pay anything that you are not comfortable with. Sometimes they will reduce or freeze credit charges. Paying a little regularly is much better than missing promised repayments.

Most people in this situation benefit from help with debt from professionals who are accustomed to dealing with creditors and debt collectors.

We’ve probably all experienced financially tight months and periods in which we’re feeling the strain on our bank balances. But how do you know if your current tough monetary situation is just a passing phase or whether you really need

The first thing to consider is that an IVA is a very serious move. It is essentially an alternative to bankruptcy and, as a government initiative, is legally binding. It will also show up on your credit record and make it particularly difficult for you to obtain any sort of credit in the long term. So this type of plan really isn’t for someone who is just experiencing a difficult couple of months. If, for example, you had an unforeseen expense such as car repairs one month and this is the only reason you’re struggling, you really shouldn’t be looking at long term restructuring plans.

Key indicators that you may be someone who is in serious financial difficulty and that a formal debt solution is for you include:-

• You owe multiple creditors money (usually more than three).
• You frequently find yourself getting behind on payments to creditors.
• You total unsecured debts are disproportionately high in comparison to your income (and at least £15,000 total).
• You lose sleep worrying about paying debts.
• Your credit score is being annihilated by your inability to keep up with payments.
• You do not see any changes in your financial circumstances in the foreseeable future that will enable you to improve your situation.

These are indicators of a serious debt problem as opposed to simply a bad couple of months. In cases where individuals are suffering severe debt problems, the quicker that the problems are addressed the easier it is to solve.

Ø      This prepaid debit card can be used to make purchases anywhere a credit card can be used by adding funds to it in advance.

Ø      To use the student prepaid debit card, money has to be transferred first and the funding can be done by anyone including the card holder.

Ø      The card issuing companies also give opportunities to the parents to directly transfer a part of their salary to the students debit card every month.

Ø      Parents can monitor and supervise the daily expenses of their children. They can keep track of their child’s expenditure. Hence, it cannot be misused.

Ø      There is no need to be apprehensive about destroying the credit history because the card holder can make use of it only until the funds are available.

Ø      It is very useful to create a positive credit history as most of the student prepaid debit cards give detailed reports to credit bureaus.

Ø       The card holders have no authority to expand the credit line. Only the parents can determine the credit limit depending on how much money they transfer. Therefore, it cannot be overused by the students.

Ø      To avoid monthly bills, expensive finance charges and credit card debts, prepaid debit card is the best option.