Feeds:
Posts
Comments

Archive for the ‘Debt consolidation’ Category

Don’t rob Peter to pay Paul
If you find yourself taking out new loans to pay back existing loans at expensive rates of interest because your credit rating is not as good as it once was, it may be time to stop and get help.

Don’t ignore calls & letters
When the letters asking for missed repayments start to arrive, they often fall thick and fast. You can often tell what they are before you open them, you may even leave the letter in the envelope.

However what you don’t know is you can get help to stop these letters and help negotiating with creditors to make repayments affordable. The number of times we hear the story of how a person has kicked themselves for waiting so long before getting help, and if they’d known how straightforward it was they would have acted ages ago.

The other side to this is the amount of money that is wasted on penalty fees – millions! If we all seeked help sooner rather than later we’d the banks would be really miserable as they miss out on all of your hard earned cash.

Don’t trade your way out of debt
We’ve all had a call asking for money we haven’t got and most of us have told them what they want to hear knowing full well that the money isn’t there to pay them or thinking the money will be there once you get paid, a deal comes off and other types of windfall.

The reality is that it’s really difficult to catch-up and it may be worth seeking help before too long.

Don’t go into denial
With debt you can find yourself in a dark place where you can convince yourself and possibly others that all is OK, whist deep inside knowing full well that all is not OK, and it’s actually things are getting progressively worse.

You do not need to suffer – this I promise you. There are people out there who can help – here’s a list.

Don’t be afraid to talk to a real person
The Internet is great. What would we do without it? You would not have found this site for a start. But don’t be fooled. For many subjects the internet can be less useful than you think. The last time I checked out my ailments on Google I was in serious trouble as the big ‘C’ was a real possibility. As you’ve guessed, I am alive and kicking.

The same is true of debt. You can’t find out which path you should take to get out of debt just by going online. You can find out about some of the options but you won’t know which one is really best for you, and you won’t know which one your creditors are likely to agree to unless you talk to a real person with the experience necessary to look at you and your finances, to work how you are going to beat debt with the least money and in the shortest time. Here’s a link to real people you’d want to talk to.

And finally, don’t believe everyone that calls himself or herself an expert
The UK is full of commercial debt advice organisations that get paid if you start solutions like commercial debt management plans and IVA’s, or take out a consolidation loan.

The first thing to point out is there are free debt management plans available so don’t start one that doesn’t involve every penny going to your creditors.

Secondly, there is nothing wrong with IVA’s and re-mortgaging as a way of getting out of debt if they are used in the right circumstances.

This is why we’ve made this list of debt charities we would talk to if we were you. They only offer free debt management and only offer IVA and loans if they’re right for you.

Read Full Post »

Don’t rob Peter to pay Paul
If you find yourself taking out new loans to pay back existing loans at expensive rates of interest because your credit rating is not as good as it once was, it may be time to stop and get help.

Don’t ignore calls & letters
When the letters asking for missed repayments start to arrive, they often fall thick and fast. You can often tell what they are before you open them, you may even leave the letter in the envelope.

However what you don’t know is you can get help to stop these letters and help negotiating with creditors to make repayments affordable. The number of times we hear the story of how a person has kicked themselves for waiting so long before getting help, and if they’d known how straightforward it was they would have acted ages ago.

The other side to this is the amount of money that is wasted on penalty fees – millions! If we all seeked help sooner rather than later we’d the banks would be really miserable as they miss out on all of your hard earned cash.

Don’t trade your way out of debt
We’ve all had a call asking for money we haven’t got and most of us have told them what they want to hear knowing full well that the money isn’t there to pay them or thinking the money will be there once you get paid, a deal comes off and other types of windfall.

The reality is that it’s really difficult to catch-up and it may be worth seeking help before too long.

Don’t go into denial
With debt you can find yourself in a dark place where you can convince yourself and possibly others that all is OK, whist deep inside knowing full well that all is not OK, and it’s actually things are getting progressively worse.

You do not need to suffer – this I promise you. There are people out there who can help – here’s a list.

Don’t be afraid to talk to a real person
The Internet is great. What would we do without it? You would not have found this site for a start. But don’t be fooled. For many subjects the internet can be less useful than you think. The last time I checked out my ailments on Google I was in serious trouble as the big ‘C’ was a real possibility. As you’ve guessed, I am alive and kicking.

The same is true of debt. You can’t find out which path you should take to get out of debt just by going online. You can find out about some of the options but you won’t know which one is really best for you, and you won’t know which one your creditors are likely to agree to unless you talk to a real person with the experience necessary to look at you and your finances, to work how you are going to beat debt with the least money and in the shortest time. Here’s a link to real people you’d want to talk to.

And finally, don’t believe everyone that calls himself or herself an expert
The UK is full of commercial debt advice organisations that get paid if you start solutions like commercial debt management plans and IVA’s, or take out a consolidation loan.

The first thing to point out is there are free debt management plans available so don’t start one that doesn’t involve every penny going to your creditors.

Secondly, there is nothing wrong with IVA’s and re-mortgaging as a way of getting out of debt if they are used in the right circumstances.

This is why we’ve made this list of debt charities we would talk to if we were you. They only offer free debt management and only offer IVA and loans if they’re right for you.

Read Full Post »

It isn’t good economics for an IVA for under £20,000 to be taken on due to the fees imposed by the insolvency practitioner. The amount charged by the practitioner is very steep and problems keeping up the payments can prove very difficult. You should however seek IVA advice.

It is said that a certain amount is paid every month and gives the impression that the same amount throughout the IVA is kept to, but this is not true – the amount can change as the wage changes and as the cost of living is getting ever steeper it can prove difficult to justify your expenditures. It can seem a good way to rid yourself of the debt burden but it is for 5 years and that is a large portion of your life to commit for. If you own your own home at the end of year 4 you can be asked to re-mortgage and quite a large amount taken away from you which may mean you have paid all your debts owed anyway – considerably more than the 25% you are told you will pay.

On the other hand with bankruptcy you will automatically lose your home and if in certain employment, the police force being one of them, you will lose your job

But it is something that has to be thought about very carefully as an IVA is not an easy get out.

Read Full Post »

Individual Voluntary Arrangements (IVA’s) are becoming an increasingly popular method in which to ease any debt problems. Recent figures suggest that the amount of IVA’s taken out each month now exceeds that of the amount of bankruptcies. However, IVA’s are not always the best debt management solution for some, and there are some advantages and disadvantages which you would have to consider before applying for an IVA.

One of the biggest advantages of an IVA is that they are private; none of your friends or family has to find out. This means there is no social stigma attached to IVA’s. Furthermore, an IVA leaves you debt free in up to five years whilst safeguarding all your assets at the same time. Even during these five years, the repayments that you make are within your means. You are never asked to repay more than you are able to.

Perhaps one of the most stressing aspects of debt problems is having your creditors continually threatening you for your payments. Luckily, an IVA ensures that creditors are unable to contact you, make any demands or take you to court.
For some people, the IVA period of five years is a long time to be repaying debts, and filing for bankruptcy gives you the option of being debt free in as little as a year. Although an IVA is not publicised in the same way as bankruptcy, you can still find a record of your IVA on the Individual Insolvency Register, which is searchable by the public. In addition to these disadvantages, the life of a debtor in an IVA period is highly monitored during an IVA period, with wage slips and salaries checked regularly to ensure that you are repaying the highest amount possible.

If you are seriously considering an IVA, be sure to do a thorough check of the Debt Management comany before you choose. Debt Free Direct discovered several agencies were giving consumers misleading advice on IVA terms, so it is always advisable do your research first.

Read Full Post »

Twitter has taken over and I spend more time on twitter than I should.My poor little blog wishes I’ll pay more attention to her. Let’s address a real problem – BANKRUPTCY. I have written a lot of articles on this topic and will always do.

Administration orders is one alternative to bankruptcy and is a court-based procedure whereby you make regular payments to the court to pay towards what you owe your creditors. You need to have enough monthly or weekly income to meet the payments. If you cannot make the payments this order can be cancelled.

An informal arrangement is another option where you write to all your creditors and try to come to some kind of payment arrangement and this would usually include a timetable detailing when you can pay them. The only disadvantage to this is that it is not legally binding so it could be ignored by your creditors and then they could ask for full repayment of your debt.

The third option could be debt consolidation where you take a loan with a low interest rate say from a bank and this helps to pay many creditors and then you only have one monthly payment to make to pay off your bank loan.

Read Full Post »

Home improvement loans are indeed worth taking out. However, rather than using an independent loan company specialising in home owner loans, approach your bank or building society and take extra borrowing on your mortgage as their rates will often be much more favourable.

The reason that I think that home improvement loans are worth while is probably down to television programmes such as grand designs and property ladder.

Both give the indication that as long as you spend the money wisely this will almost immediately add value to your home far exceeding the initial outlay.

Not so much grand designs are they usually build houses on an epic scale, but certainly property ladder indicate that with a few subtle well spent changes here and there you will be quids in.

They often recommend, ensuite bathrooms, knocking down walls, open plan living spaces and new kitchens and bathrooms to increase the value of the property.

Read Full Post »

Older Posts »