Posts Tagged ‘Debt consolidation’

The first point of contact for any debt advice should be the Citizens Advice Bureau. They have specially trained staff that know exactly where you stand legally and between them have years of experience in helping people for free. They will go through your circumstances and advise you on your options.

There are other companies that are advertised to help you with your debt however make sure they are independent and not just offering one solution to your debt (e.g. IVA) as they will be giving biased advice.

Secondly, you then need to contact your creditors to make arrangements to repay based on the advice given to you. In terms of whom to contact first my Mum always told me that you should always pay your rent or mortgage first as you need to make sure you have a roof over your head. You can then work backwards from there in terms of the biggest consequences if you don’t keep up with full payments.

Following this you can try and see if you can bring in some extra income to help speed up the repayments. I would not use these in my original calculations but as a bonus to help get out of debt quicker.


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A retired vicar was sentenced to a month in prison as a result of debt accrued from non-payment of council tax.

The elderly vicar who also has a heart condition began his sentence in one of the toughest prisons in the UK after he protested over an increase of £64 on his council tax bill. The vicar is now paying for the error of his ways as he rubs shoulders with gangsters, terrorists and murderers in a Category A prison.

Father, son and unholy debt

The vicar’s son is fighting for his father to be released but the council have said that the vicar will not be freed until he has paid back his debt by serving the full 28 days.

The vicar told his family that the prison where Soham killer Ian Huntley tried to commit suicide, was very grim. A released inmate described the vicar as looking extremely worried and very shaken up as he handed over his personal belongings. He said that it was hard to believe that a vicar was serving time and that the only way he would cope would be to keep himself to himself.

This is a classic example of how pensioners are forced to take a stand when they are unable to consolidate debt in the face of increasing financial demands. Instead of seeking debt counselling the vicar refused to pay the 8.5% increase on his council tax and only agreed to pay 2.5%. As a result, he ran up arrears to the value of £691 which included court costs

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Hundreds of low-income families are falling into debt because they are unable to pay for energy bills which have not been updated on their pre-payment meter.

Meters need to be reset manually whenever a price increase occurs so as customers always pay the correct amount for usage.However, companies are failing to do this and customers are finding themselves with a debt that they thought they were clearing.

One customer received a bill of nearly £1,000 because his energy company had failed to reset his meter.

Nearly 1 million people pay for their energy by inserting a paper token.If companies fail to update them, poorer families could be forced into seeking debtsolutions through no fault of their own.

Companies who do not backdate price rises are EDF Energy and Scottish and Southern Energy but Powergen, British Gas and Scottish Power make a point of always backdating price rises.

Do I still have to pay my debt?

Energy bills have to be paid even if a customer is punished for a company’s slowness in re-setting their meters.If you are faced with extra debt from your energy supplier, your other bills could suffer.Seek the help of a debt management company who will balance all of your outstanding bills so as you can afford to ‘see light’ at the end of the tunnel when unexpected debt comes thundering through your door.

Follow these seven steps of debt and have a peaceful sleep.

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