Debt Management Plan Advice UK
Top ten debt management tips
posted by debts.org at 04:15
Debt management, debt relief, debt solutions and financial planning to help you through the credit crunch are all available in cities throughout the UK, including London, Birmingham, Manchester, Liverpool, Leeds, Sheffield, Nottingham, Reading, Derby Northampton, Plymouth, Southampton and Burnley.Before contacting a debt management company, to discuss unfair bank charges, setting up a debt management plan, claiming back mis-sold payment protection insurance or mortgage exit fees, look through the following information to help solve your debt problems:
1. It is easy to ignore mounting debt problems and credit card debts by either not opening your mail or throwing your statements in a drawer somewhere and forgetting about them. Take the bull by the horns and work out a proper monthly budget. Deduct all your outgoings and debts from your monthly income. If there is any money to spare increase debt payments on the debts with highest interest or secured loans such as mortgage. Identify the areas where you can cut back to reduce further debt.
2. Even if you debt problems at this stage are minor, cut back now on non-essentials to avoid serious debt problems in the future. Small changes which you may not have considered previously can have a major long-term impact on your finances. If you normally eat out during your lunch break at work for example, take a packed lunch instead. This could save you over £120.00 per month. And if you like a tipple after work with your colleagues, reduce the number of times per month you go out. And leave the credit cards at home.
3. Arrange internet banking so you can review your statements regularly and check what is coming in and what is going out. Check all of your direct debits and standing orders are correct and still need to be paid. If you are still paying out for gym membership you no longer use, and mobile phone contracts no longer valid, then contact the bank immediately to cancel payments.
4. Check your credit rating at least every 6 months to make sure there are no errors on your credit report. This can seriously affect your application for more credit in the future.
5. If you are looking for debt advice for credit card debts in London, Birmingham, Leeds, Newcastle, Sunderland, Nottingham, Reading, Leicester, Coventry, Hull, Wolverhampton, Preston, Peterborough, Stockport or any city in the UK, you can contact a specialist debt counselling company for help and guidance.
6. Always pay off more than the required minimum on your credit card debt. Mounting interest will make it virtually impossible to pay off in a reasonable amount of time otherwise. And cut up the card to make sure you are not tempted to spend more.
7. You can save hundreds of pounds a year by switching mobile phone companies, utility suppliers, banks, landline, broadband and by getting a water meter installed. If you are looking to reorganise your finances or you want debt help or debt advice from a specialist debt help company, contact debts.org for free guidance and help.
8. Once your finances are back in order, possibly with the help of a debt management plan which you can arrange in London, Leeds, Wolverhampton, Dudley, West Bromwich, Slough, Brighton, Gloucester, Exeter, Nottingham, Liverpool, Bolton or any town in the UK, you can start to look forward to a debt-free future.
9. Before cashing in any insurance policies you may have, check if there is a way to reduce your monthly repayments, as you may lose out if you have been paying in to any scheme for a long period of time. Debt management, credit card debts, debt relief and advice about mis-sold payment protection insurance, unfair bank charges and early payment mortgage fees can all be claimed back. Speak to a specialist debt help company who will give you free advice and help.
10. Save as much money as you can afford after you review your budget and clear your debts. If you are experiencing debt problems, credit card debts or if you face repossession or want to claim back unfair bank charges, payment protection insurance which was mis-sold or would like more advice about a debt management plan, in London, Leeds, Liverpool, Manchester, Birmingham, Burnley, Leicester, Hull or any other part of the UK, contact debts.org for free advice on: 0800 320 0923 or fill in the online form.
Labels: Brighton, Dudley, Exeter, Gloucester, Liverpool, Nottingham, Slough, West Bromwich, Wolverhampton
How debt problems can improve your love life
posted by debts.org at 04:04
We have all heard the old adage, “when poverty comes in the door, love flies out of the window”. But how true is that? Shared financial struggles can actually improve your love life, as couples bond more closely in their shared struggle against the universe.1. Debt problems make you more romantic
If you are suffering debt problems including credit card debts, you may not be able to dine at the finest restaurants with your lover (or your partner come to that), or jet off on exotic holidays, but concentrate on what you CAN do. Enjoy a walk in the park or take a trip to the river and have a picnic. Without all the background noise, you might even be able to hear what your partner has to say, and guess what, you might even like it.
2. Debt problems and nights in
If you can´t afford to go out, and you are arranging a debt management plan or suffering with credit card debts, plan quality time at home. Hire out some funny DVDs, light the candles and have a good laugh (preferably before he takes his trousers off). Laughter is a great therapy and reduces stress levels.
3. Necessity is the mother of all creativity
If you are good with your hands, invent or create some entertaining activities which cost nothing. Alternatively, if a discussion about debt-relief is not the answer, play board games, cook some romantic meals together (fish fingers and chips does not count) or even get down and dirty with some DIY which will bond you closer together (especially if you overdo the superglue).
4. Work out a budget to solve debt problems
Working out your finances may not be the biggest turn-on ever, but think of the satisfaction you will both feel when you can look forward to a debt-free future. Whether you are thinking of arranging a debt management plan in London, Leeds, Manchester, Birmingham, Stockport, Liverpool, Gloucester, Portsmouth, Northampton, Rotherham, Hull or any other UK city, or you simply want good, sound debt advice, look no further than debts.org. Take time to sit down, or stay in bed, and work out your income and outgoings per month before seeking debt advice or debt help.
5. No debt problem drama required
Try to stay calm with your partner even if your debt problems or credit card problems become serious. Stronger relationships can result from weathering the storm together, and coming out unscathed at the other end. If you start to annoy each other when discussing debt relief, debt help or debt advice, walk away and leave it till later. If he continues to ignore you and sits on the sofa reading, set fire to his newspaper – that should get his attention (only joking – don´t try that one at home folks).
6. Calm down and chill out
Once calm has been restored to the home, take your time to relax and enjoy your surroundings without the help of copious amounts of alcohol. Fun as it may seem at the time, the only thing likely to rise after too much booze is your temper, and if you are already suffering debt problems, it won´t help your bank account. Keep calm, keep the conversation light-hearted and enjoy your surroundings.
7. Enjoy different hobbies
If you both find yourselves at home all day long you may get under each other´s feet. Take the time to enjoy a few hours with your friends or family without your partner, and encourage him to do the same. He may have different hobbies to you, so let him go off and play five-a-side while you enjoy a night in, or out if funds allow, with the girls. Not only will you be more pleased to see each other at the end of the day (assuming you are still in a fit enough state to get the key in the door) you will also have more to talk about, apart from debt management plans and debt advice.
8. Face the music and dance
The sooner that you and your partner face the music, and stop burying your heads in the sand, the sooner you will be debt-free. Communicate with one another in a calm way, and work out how you are going to address your debt problems, which company or debt management organisation you are going to contact and when you are going to make the first move. Once you have a plan of action, you will feel like a weight has been lifted from your shoulders, and you will see a light at the end of the tunnel. You can reduce your debts by up to 70% a month by arranging a Debt Management Plan,(DMP), an Independent Voluntary Arrangement (IVA).
9. Sweets for my sweet
Bolster your love life and make your partner feel special by reminding him of his special traits, and wonderful ways which first made you fall for him. If you can´t bring yourself to do this, or you don´t think he has any, just take him a cup of tea in bed every now and again to keep him sweet. Joking aside, a problem shared is a problem halved, and if you face your debt problems responsibly together, it can bring you even closer together as a couple.
10. Romance and credit card debts
Once you have made the solemn promise to each other not to increase the credit card debts or store card debts, stick to it. In other words, if there is something you desperately need such as a new dress, buy it. When his birthday comes around just get him a greetings card instead of a gift. That way you won´t be any worse off! But seriously folks, credit card debts and store card debts can be crippling. Once you have arranged a budget with your partner, you must discipline yourself to stick to it. When times are hard, imagine how much better off you will be, once you pay off your debts.
So if you are looking to improve your love life, or simply want some free advice about debt problems, debt management plans, or credit card debts in London, Nottingham, Manchester, Brighton, Leeds, Dudley, Northampton, Portsmouth, Stockport, Huddersfield, York, Sheffield, Bristol, Birmingham, Leicester, Hull, Southampton, Plymouth, Coventry, Luton, Telford, Bolton, Liverpool, Middlesbrough or any other city in the UK contact debts.org or fill in the online form.
Labels: Birmingham, Bolton, Bristol, Coventry, Huddersfield, Hull, Leicester, Liverpool, Luton, Middlesbrough, Plymouth, Portsmouth, Sheffield, Southampton, Stockport, Telford, York
Ten ways to reduce debt forever
posted by debts.org at 04:00
The number of people now facing serious debt problems in the UK is frightening. Many of those people feel helpless and abandoned, but help is now available. Bankruptcy is by no means the only way out, and if you are suffering debt problems or credit card problems in London, Bristol, Leeds, Manchester, Birmingham, Walsall, Burnley, Nottingham, Leicester, Derby, Southampton, Brighton or any other UK city, you can get free help and advice. Firstly, remember the following:1. Face up to your debts
You need to work out exactly how much you owe and who to. Check out the Consumer Credit Counselling Service website (www.cccs.co.uk) to help assess your debts. Credit card debts are crippling millions of people in the UK, and you need to prioritise your debts and pay off the ones with highest interest first.
2. Don´t be intimidated by debt collectors
If the debt collectors call you demanding payment, and you feel intimidated by them, contact the Office of Fair Trading who will give you free advice and guidance. You can also receive free advice from debts.org about debt management plans, debt relief, consolidation loans, claiming for payment protection insurance that has been mis-sold, and claiming for unfair bank charges and advice about IVAs.
3. Prioritise your debts to avoid serious debt problems
Make your mortgage and debts secured on your property a priority. If you fail to make these repayments it could end up in court action and/or your house being repossessed. Before you get to this stage, it may be worth speaking to a specialist debt advisory company who can explain how a debt management plan works. A debt management plan could relieve your debt problems by arranging for you to make a lower monthly payment for credit card debts and other unsecured loans.
4. Contact the right people for debt advice
If you are looking for free, confidential debt help and advice, contact The Citizen´s Advice Bureau or the National Debtline who will talk to you about your debt problems and help point you in the right direction. Debt help and debt advice is available free in Nottingham, Leeds, Bradford, Stoke, Wolverhampton, Birmingham, Leeds, Sheffield, Bristol, Bolton, Ipswich, West Bromwich, York, Oxford, Poole, Gloucester, Watford and every other UK town and city.
5. Contact a regulated debt company
If you are looking for free and confidential debt advice or debt help, contact a regulated company who specialises in debt management. Don´t allow yourself to be pressured into taking out a debt management plan, an IVA or a bankruptcy agreement that does not suit your needs and requirements. Debt is a personal problem, and every case is different and should be treated as such.
6. Bankruptcy should not be ruled out
Bankruptcy may be an option for you and there is no longer any stigma attached to it. A bankrupt can discharge debts in one year, but it is not necessarily an easy option. You could lose your home and car if you declare bankruptcy, and it could affect your chances of employment in the future.
7. IVAs and debt management plans
You may be advised to sign up for an individual voluntary arrangement (IVA) or a debt management plan (DMP) which has far less serious consequences than bankruptcy. An IVA is a legally binding agreement in which an insolvency practitioner arranges a five-year repayment plan with creditors. If that does not suit you, a DMP is less formal agreement between yourselves and your creditors which is much more flexible.
8. Consolidation with caution
It is tempting to enter into agreements to consolidate all your loans into one, and just pay a single amount back each month. This could be the perfect solution for you, but only if you stop spending and adding to your credit card debts in the meantime.
9. Look forward to a debt-free future
Look to set up a debt management plan by contacting the Consumer Credit Counselling Service or debts.org, who can organise reduced monthly payments on your behalf to your creditors.
10. Seek debt help and advice not retail therapyDon´t look at shopping as being retail therapy, as your credit card debts and store card debts will spiral out of control.
Credit card debts, house repossessions, store card debts, unfair bank charges and rent arrears are common in every town and city in the UK, including Manchester, Birmingham, Mansfield, Watford, St.Helen´s, Oldham, Derby, Dudley, Southampton, Gloucester, Liverpool, Luton, Swindon, Huddersfield, Bradford, Hull, Peterborough and Cambridge, but debt help and debt advice is now available from debts.org. Call us for free help and advice on 0800 320 0923 or fill in the online form.
Labels: Birmingham, Coventry, Hull, Leeds, Leicester, Newcastle, Nottingham, Peterborough, Preston, Reading, Stockport, Sunderland, Wolverhampton
Ten ways to get out of debt
posted by debts.org at 03:16
If you ignore debt problems, and fail to seek debt advice or arrange a debt management plan, your finances can spiral out of control. You could be seeking debt advice in London, Birmingham, Liverpool, Leeds, Sheffield, Bristol, Manchester, Leicester, Coventry, Hull, Bradford, Stoke, Wolverhampton or Nottingham and not know where to turn. Before you seek the help of debts.org, try to face up to your debt problems, and consider the following:1. If you owe money to more than one creditor, put your debts in order of priority. Any debts that could result in you losing your home, or being cut off by the electricity or gas board, should be addressed first. If your debts only consist of credit card debts, or store cards, try and pay off the one with the highest interest rate first.
2. Draw up a monthly budget, which will give you a clear picture of how much you have left each month to spend on debt repayment. Write down details of everything you spend in a month and see where you can cut back to free up some more money to pay your debts. You may be able to take advantage of a debt management plan, which a specialist debt solution company could arrange for you with your creditors.
3. Consider switching to a cheaper credit card, preferably one that is offering 0% balance transfer for a limited amount of time. If you do this, destroy your old card which will still prove a temptation to you once it is balance free. Credit card debt is one of the most common forms of debt problems in the UK.
4. Write or call the banks or credit card providers to cancel your account with them if you no longer wish to use your cards. Otherwise, when the date of the card expires they will send you another one regardless, tempting you to get into more credit card debt.
5. Always pay above the minimum required payment when possible. The more you pay, the less it will cost you in interest rates. Credit card debts in Plymouth, Southampton, Reading, London, Derby, Dudley, Newcastle, Northampton, Portsmouth, Luton, Preston, Milton Keynes, Sunderland and the rest of the UK are rising.
6. Move your mortgage if you can get a better deal elsewhere. Also look to switch your phone, gas or electric providers to free up more cash for immediate debts. Mobile phone providers are always offering cheaper deals than their counterparts, and as this is such a competitive business, it is worth shopping round for the best tariffs and deals. If you are looking for debt relief or debt solutions in the UK, or you simply want debt advice in Norwich, Walsall, Bournemouth, Southend, Swindon, Huddersfield, Poole, Oxford or any part of the UK, seek the help of a specialist debt management company.
7. If you are suffering debt problems and looking to increase your income, look for a part time job. You can also earn extra money by clearing out your house and selling unwanted goods in the local paper or at a car boot sale. Also look at buying and selling on e-bay. This is an online auction site which is accessed by millions of people.
8. Seek specialist advice about debt management plans, IVAs and even bankruptcy before setting the wheels in motion. Often, debt solution companies will contact your creditors on your behalf, and arrange for you to take out a debt management plan, meaning you will have manageable monthly payments and a debt-free future.
9. Always acknowledge your creditors and never ignore credit card bills and letters asking for money. If you bury your head in the sand, your debts will continue to grow, which could result in court action against you.
10. Seek advice from the National Debtline, the Consumer Credit Counselling Service or debts.org who can help you resolve your debt problems. If you are looking to arrange a debt management plan, an IVA or you would like free debt help and advice in Middlesbrough, Blackpool, Bolton, Ipswich, York, Peterborough, Stockport, Brighton, Rotherham, Cambridge, Blackburn, Colchester, Oldham, St. Helens or any other part of the UK, contact debts.org today on 0800 320 0923 or fill in the online form.
Labels: Birmingham, Coventry, Hull, Leeds, Leicester, London, national debt line, Newcastle, Nottingham, Preston, Reading, Sunderland, Wolverhampton
50 ways to save money and avoid debt problems
posted by debts.org at 02:48
If you are struggling with debt problems and you can´t see any way out of your financial crisis, you can contact debts.org for information about a debt management plan, an IVA or even bankruptcy. There is always a light at the end of the tunnel, and you need no longer feel alone with your debt problems. In the meantime, consider the following 50 ways to save money and to solve some of your debt problems:1. Get the best mortgage deal
If you are paying the full standard variable rate mortgage, you are probably paying a lot more than you need to every year. There are now more deals to choose from than ever, and it pays to shop around if you are thinking of switching your mortgage. Over the years, you can save thousands of pounds by paying less interest. Check out some mortgage comparison sites or ask for more information from banks and building societies about how much you can save.
2. Clear credit card debt
Always clear your most expensive credit card debt first. It may save you money to take out a bank loan in order to pay off your credit card debt (interest on a bank loan is normally much less than interest on a credit card.
3. Cut the cost of fuel bills
Fuel prices worldwide may be rising, but that doesn´t mean you have to pay over the odds. Compare prices of different fuel suppliers on debts.org, and you will be surprised how much you can save by switching to another company.
4. Install a water meter
Water is often estimated, and you could end up paying the same as the occupants of the house next door, simply because of your address, and irrespective of how many people live in your house. Install a water meter for exact readings.
5. Reduce your phone bills
Shop around to find the cheapest telephone companies. You may be able to hook up with a company which will allow you to access low cost calls using your existing BT line.
6. A pay as you go mobile
Change from a contract mobile to a pay-as-you-go arrangement. You can save hundreds of pounds by taking advantage of one of the many mobile offers and deals available to new customers.
7. Always make a shopping list
Make a shopping list before you hit the shops, and only buy what you need. We are often tempted to buy food and drink which catches our eye, but is a waste of money.
8. Food shop at the market
Fresh fruit and vegetables are normally better quality and lower priced than those at the local supermarket. Take a trip round your local farmer´s market or town market once a week. You will be surprised how much cheaper you can shop for.
9. Own-brand goods in the supermarket
You can usually buy own-brand goods for up to a third cheaper than other brands in the supermarket, and they are often similar quality.
10. Sell what you don´t need on e-bayBuy or sell unwanted goods on e-bay to save money. An account is easy to set up and you could be trading in minutes. Alternatively, consider a stall at the local market or car boot sale to sell your unwanted items.
11. Use your talent
If you are talented, teach other people to sing, dance, speak another language, play the guitar, swim or draw. We are all good at something, so use your talent to earn some extra cash.
12. Don´t do designer labels
It is tempting to splash the cash, or splash the plastic on designer labels. Don´t! If you are struggling with money or already have debt problems, the last thing you need is to make things worse. Keep your clothes shopping to a minimum, and have a look round the factory shops and charity shops where you can find some real bargains.
13. Theatre and theme park tickets
Never pay full price for theatre or theme park tickets. Lastminute.com offers some amazing deals for theatres and days out with the family, and you can get up to 50% off normal ticket prices.
14. Trade-down your car to avoid debt problems
Sell your car and change it for a smaller model, or one that uses less fuel. You may even be able to buy a newer model than your previous flashy gas-guzzler, and you can release some cash to pay your debts.
15. Don´t compete with the neighbours
If you are experiencing money worries, don´t try and keep up with the Jones´s. It could just be that the Jones´s are in more debt than you.
16. Don´t make unnecessary purchases
If you ask yourself whether you really need half the things in your wardrobe, the answer would probably be NO! Don´t buy unnecessary items to ´make you feel better´ as you will only succeed in getting further into debt and making yourself feel a whole lot worse!
17. Don´t use ticket touts
Tickets for football matches, shows, concerts and all sports events are available to everyone. If you want to be first in the queue, sign up with some ticket agencies who will alert you when they go on sale.
18. Cancel the gym to avoid more debt
You may have a gym membership which you hardly ever take advantage of. If you have a regular payment flying out of your bank account but never use the gym, cancel your membership.
19. Cut down on the nights out
Cut down on the nights out and cut down on the alcohol. A couple of pints after work every night may not seem too costly, but work out how much you could save per month if you halved your intake.
20. Stop smoking
Probably one of the best things you can do in your life is to stop smoking. Health-wise and wealth-wise this is a biggie. If you normally smoke 20 cigarettes a day, you can save £2,000 a year by stopping. To give you an extra incentive, put the money that you would normally spend on cigarettes in a bank account, forget about it for a year and spend it on a holiday to celebrate a smoke-free 12 months.
21. Walk or cycle to work
You can improve your health and your finances by walking or cycling to work. Not only will you get fitter, but you won´t have to spend your hard earned cash on bus fares or petrol.
22. Get off the bus before your normal stop
If you work quite a long way from home, get off the bus or train one stop earlier than usual. You can get some exercise and also save money at the same time.
23. Stop throwing your money away on the national lottery
Clever advertising gimmicks and promotional giveaways tempt millions of people into spending money on the national lottery every week in the UK. The odds of winning the national lottery jackpot are stacked at 14 to 1 against each ticket. Save the money you would spend in a pot and you will be surprised how much have been throwing away.
24. Buy one get one free
Some offers and deals in supermarkets are genuine but shop with caution. Buy one, get one free offers are in place to get you to buy something you wouldn´t normally look at. So again, do the ´do I really need it´ test before buying.
25. Shop in the sales
Hundreds of people have debt problems in the UK because they overspend on items they don´t need. Another way to reduce your outgoings is shop in the sales. Where possible, buy birthday and Christmas presents throughout the year in the sales. You can save hundreds of pounds by shopping this way.
26. Use the local library
If you enjoy reading, or if you want to use the internet and don´t have a PC at home, use your local library. You can take books out and use the internet in many libraries free of charge, and you can even scour the ´situations vacant´ column of the local paper.
27. Christmas presents
Christmas should be a time of joy and happiness, but for some families it becomes a nightmare. If you are already struggling to pay debts, or you are on a debt management plan, buying gifts for the whole family is not an option. Get everyone together before Christmas and ask each person to draw a name from the hat. Whoever you pick, you buy for. This way everyone gets a gift, but you will only be expected to buy for one person.
28. Claim benefits and tax credits
Thousands of people in the UK don´t claim the benefits and tax credits they are entitled to. Make sure you are receiving child benefit, working tax credits or any other benefits you may be entitled to. Check with your local job centre or benefits office what you may be able to claim.
29. Avoid monthly insurance payments
If you pay your insurance in monthly instalments, you could be charged up to 20% more for the pleasure. If you are in a position to pay the insurance for home or car each year, then do so. It is false economy to pay in monthly instalments and you will find yourself out of pocket at the end of the year. If you are suffering debt problems and feel there is no way out, you can contact debts.org for free advice and guidance about a debt management plan.
30. Do you need the whole TV Package?
If you are suffering debt problems or perhaps you are considering a debt management plan, cut down on the number of TV channels you pay for. You could be paying over £50 per month for movies, cartoons, sport and history channels that you never look at. Change to free view which is exactly that – free to view.
31. Solve some debt problems by cashing in your ISA allowances
You can save up to £3,000 a year in a tax-free savings account called an ISA. With an ISA, you don´t pay any tax on interest accrued, which makes a big difference to savings.
32. Online shopping can be cheaper
Shopping online can work out a lot cheaper than on the high street. Shop around, particularly on sites such as e-bay, and you will find some real bargains. Online grocery shopping is also improving, and you can get food delivered to your door from all of the major supermarkets. This could also save on parking fees and petrol if you live a long way from the shops.
33. Get rid of the ready meals
Convenience foods are exactly that. Convenient to throw in the microwave, but usually unhealthy and expensive. Buy some good, fresh ingredients from the market or the green grocer, and if you´re not quite Delia Smith, borrow a book from the library and you will be surprised how delicious a home-cooked meal tastes.
34. No need for extended warranties
Extended warranties are often a waste of time. How many times has your fridge broken down in the past 5 years for example? Or your washing machine? Save money by not taking out extended warranties when you buy new kitchen equipment or electrical goods.
35. Money-saving hobbies
You can take up a money-saving hobby which is also good for you. Swap the pub for a long walk in the countryside, or a day´s fishing by the river. Healthy and money-saving hobbies usually go hand in hand, and you will be surprised how much you can save by cutting down on the pub hours.
36. Payment protection or over-priced hype?
Payment protection plans are often mis-sold. Banks and building societies have been guilty of putting pressure on customers to take out payment protection plans when taking loans or mortgages. By all means listen to what they have to say, but don´t fall for the hard-sell and weigh up your options before putting pen to paper.
37. Car share to get to work
If you live close to another work colleague, share the journey to work and cut down on petrol. One of you could drive one week and the other one the next. You could also save on parking fees by sharing a car to work.
38. Magazines and Newspapers
You can now read most magazines and newspapers online, at no cost at all. If you don´t have a PC at home, take a trip to the local library where you can normally use the internet for free. The cost of magazines and newspapers adds up over a year, and this could be money spent to reduce your debt problems.
39. Citizen´s Advice Bureau
Every major town or city has a Citizen´s Advice Bureau. If you are worried about money, bills, debt problems, bailiffs or you simply want to chat about a legal issue, Citizen´s Advice Bureau gives free, confidential advice. Debts.org can also give free advice about debt management plans, IVAs and bankruptcy and we can speak to your creditors on your behalf to arrange a debt solution for you.
40. DIY to save money
You may have never considered DIY, and always preferred to get ´a man in´ for those fiddly jobs in the home. Most DIY jobs are manageable without any particular training, and you can get manuals and self-help guides from most of the large DIY stores. Try it – you could save hundreds of pounds in the long run by attempting even the smallest jobs in the house. You can even take a part-time course at college if you really want to learn the ins and outs of DIY at home.
41. Cheap household insurance
Shop around for cheap household and car insurance. You don´t have to have house insurance but can you afford not to? If your house burns down, or even if it is ruined by a flood from the apartment above, you could find yourself out on the street with nowhere to go. You can now go to several insurance comparison sites on the internet to find the cheapest deals available. Car insurance is also now widely competitive, and there is no reason to automatically renew your policy year after year without shopping around first.
42. Shop around for travel insurance
If you pay for travel insurance annually, but don´t have a holiday booked, don´t automatically renew the policy. Re-start the policy when you book a holiday if you are not sure you will use it this year. Staysure.co.uk is the leading travel insurance company for the over-50´s, and they can give you help and advice with arranging your holiday travel insurance.
43. Cheap breakdown insurance
The large breakdown firms such as the AA and the RAC advertise widely, but shop around before taking out breakdown cover, as you can find cheaper companies who also offer an excellent service. If you break down, you need to know you will receive swift attention, so always read the small print before you sign.
44. Don´t pay over the odds for life insurance
The cost of life insurance is getting cheaper all the time, as people are living longer. If you took out a policy years ago, check how much you are paying, as you could now be paying over the odds. You can also check out different insurance policies on internet comparison sites.
45. Book early and pay less
If you are planning to travel this year, book early with a low-cost airline. If you are not fussy about where you travel in Europe, you will find plenty of deals and offers available from Easyjet, Ryanair and a host of other budget airlines. Some deals start from just 99p, but you need to take into account the taxes and fuel surcharges.
46. Book your holiday car hire on line
If you want to ´get away from it all´ but have to keep to a strict budget, take your time to look around the internet for the best holiday offers. You can make your own package tour up by booking your flights, hotel or apartment accommodation and even airport transfers in advance of travel. By booking hotel accommodation online you can get up to 70% off the normal price.
47. No means NO
It´s easy to give in to your children when they are whingeing their way round the supermarket, but make sure no means no. Also, be strict with yourself if you go out for a drink after work. One invariably leads to two which leads to three. Don´t feel guilty about not going out if you can´t afford it – stick to your guns and you will be healthier and wealthier by the end of the month.
48. Cheap cinema tickets
Call your local cinema and see when they are selling cut-price tickets. Many cinemas sell family tickets, which allow you and the children entrance to the cinema at certain times and for certain films.
49. Picnics not burgers
If your children are off school for another interminably long summer holiday, take them for picnics in the country rather than burgers and chips. You will enjoy your day a lot more, and it will be easier on the pocket.
50. Free days out
There are plenty of places to go with the family that will cost you nothing. Check your local newspapers to see what´s on in your local area, and you will be surprised how many events are free. Concerts, museums, sports events and even open-air theatre is free of charge in many towns in the UK, and summer events are particularly popular.
If you are struggling to make ends meet and want to have a confidential chat with one of our debt counsellors, call debts.org on 0800 520 0923. We will help you to face up to your debt problems, and we will even speak to your creditors on your behalf to try and arrange a debt management plan or an IVA. We can also advise you about unfair bank charges you may have paid and payment protection insurance (PPI) which may have been mis-sold to you.
Labels: breakdown, car insurance, travel insurance
TEN TIPS TO RECLAIM YOUR BANK CHARGES
posted by debts.org at 01:24
If you are wondering whether you have a case for reclaiming bank charges, contact debts.org on 0800 520 0923 free of charge. Debts.org specialises in getting your money back. Unlike other claims management companies, we are part of a leading insurance company, which means we have inside knowledge of the business, and we make it our business to get what’s rightfully yours.Consider the following:
1. Always make sure you know your rights
When you open a bank account or sign an agreement to take out a credit card you enter into a contract. Always read the small print to avoid problems later. In effect, if your bank charges you for going overdrawn, they are charging you for breaching your contract. The courts can enforce payments of this but the sum the bank charges must reflect the costs incurred, and they are no longer allowed to charge what they feel like, which may be totally disproportionate to the missed payment or bank letter. If they are charging you a penalty, this is not enforceable by law. Some banks argue that charges are a fee of service, but they must always remain reasonable to be enforceable.
2. How to spot excessive bank charges
Any excessive charges can be claimed back, which are classed as penalties by the law. Penalties can be classed as any charge the bank has made which is not in proportion to the costs they have incurred. For example, charging you, the customer, £30.00 for sending a letter to inform you of an overdraft breach, or sending a letter for the same amount to inform you about a cheque that has bounced.
3. How much does the bank owe you in unfair charges?
If you have kept all your old bank statements, go back through them with a fine toothcomb and work out what charges could be considered excessive. You may be able to find this information on your internet banking. You can also write to your bank asking for a list of all the bank charges including the amount charged, the date and the reason for the charge. The law states that the bank must provide this information within 40 days of asking.
When you first contact the bank ask if there is a specific form to fill in and if, so for them to send it to you straight away. This will prevent the bank from stalling with the information you need. Banks are obliged under the data protection act to send you a list of any charges made over the past 6 years, and they can only charge you a maximum fee of £10 for this. Ask for a list of charges and not statements, as these are not covered by the Data Protection Act and the bank may charge you more for them.
4. Ask for your money back in writing
You will be surprised what a barrage of correspondence can achieve. Keep a copy of all correspondence that is sent between you and the bank, and always call up to make sure they have received the letters a few days after sending them. Debts.org can contact your bank for you or advise you about letters to the bank, which will help you reclaim unfair bank charges. Always note the name of the person you are speaking to at the bank.
5. Bank reaction to unfair charge claims
You should receive a reply from your bank within 14 days. If not, contact them by telephone and write again if needs be. If you are offered a partial refund of your bank charges, refuse and write to them again stating your reasons. If the bank tells you they will let you know at a later date about any decision, tell them you will take court action if you don´t hear anything within another 14 days. The bank may even try to bluff you into thinking the bank charges were not unlawful but take advice from debts.org before dropping any planned action.
6. Court action for unfair bank charges
Thousands of people have successfully reclaimed unfair bank charges. Unless your claim is for more than £5,000 it will probably be heard in the small claims court. If you use a no win no fee debt counselling firm such as debts.org, you pay nothing to them unless they win the case. So whichever way you look at it, you can´t lose out. Debts.org free phone number is 0800 520 0923, and you can call our friendly team between 8.30am-9pm Mon-Fri and 10am-5pm Sat-Sun. If you are planning to take court action, open an alternative current account and consider switching any personal loans.
7. How to reclaim bank fees and bank charges
Reclaim your bank charges through debts.org and we will take the hassle away from you. We guarantee:
• A professional claims service – a comprehensive service no matter how small the claim.
• Intensive follow up procedure – we tirelessly pursue your bank for compensation on your behalf.
• Legal expertise – we won´t be fobbed off by your bank´s legal objections.
• Bank and beyond -we will take your claim as far as the Financial Ombudsman if needs be.
• No win no fee service – there is no charge if your claim is unsuccessful.
• Competitive commission – we only charge 23% plus VAT for successful claims.
8. Will the bank refund my unfair charges?The bank may now repay the unfair charges you have paid previously, and if they choose to ignore your claim, you will win by default within 14 days unless the bank enters a defence within that period of time.
9. Bank´s defence for unfair charges
It is unlikely the bank will go as far as to enter a defence for your unfair bank charges. If it does, however, you will receive a court allocation questionnaire which you should send back to the court, and a copy to the bank as soon as possible. The bank will probably then not turn up at court and you will win by default. Only two banks have been known to win cases when defending against unfair charges, yet thousands of people have won money back. Don´t be disheartened. Contact debts.org who will help you win back what is rightfully yours from the bank.
10. Avoid unfair bank charges
In future, to avoid the whole bank, unfair charge scenario, don´t allow them to issue you with penalty fines or charges. Make payments on time and don´t use unauthorised overdrafts.
As part of a large insurance company, Debts.org has inside knowledge of the financial industry, enabling us to offer a level of service other companies cannot match. We are also licensed by the consumer credit agency and our claims management service is fully authorised by the Ministry of Justice.
Labels: cheque, data protection, inform, letter, penalties, your rights
RECLAIM UNFAIR BANK CHARGES TODAY
posted by debts.org at 01:17
Unfair bank charges have been imposed on millions of people in the UK. It is time to take a stand against unfair bank charges and reclaim what is rightfully yours through debts.org. We are currently claiming back thousands of pounds in unfair bank charges for our customers, in the areas of: Payment Protection Insurance (PPI), Mortgage Exit Fees, Credit Card Fees and Bank Charges.Don´t let the banks rip you off
In these days of recession and credit crunch, take a positive step today and don´t let the banks get away with ripping you off any longer. High charges for minor account problems are no longer acceptable. According to the Banking Standards Board, complaints against banks have soared recently, and the majority have been about unfair charges and high interest rates.
Bank charges escalate as recession hits
Bank customers who slip into minor difficulties can suddenly find themselves with debts piling up, as banks charge up to £30.00 to send a letter and rub their hands together with glee at the thought of how much they can charge for clients using overdraft facilities or missing direct debit payments. It is time to fight back and reclaim your money with debts.org. Our friendly staff will help you to claim back what is rightfully yours and give you free advice and guidance along the way.
Contact us free on 0800 520 0923 or fill in the online claim form.
Labels: banks, difficulties, free advice, recession, reclaim
FREQUENTLY ASKED QUESTIONS ABOUT PPI and MIS SOLD PPI
posted by debts.org at 01:12
What is PPI?PPI (Payment Protection Insurance) covers your payments on a loan if you become sick, redundant, unemployed or if you suffer an accident (depending on the terms of the contract).
What loans are covered by PPI?
Typically, car loans, mortgages, bank and building society loans and credit cards are products that frequently have PPI conditions attached.
How can I make a claim for mis-sold PPI?
PPI Insurance has been found to have been mis-sold by the Financial Services Authority in many cases. If you feel PPI was mis-sold to you, you may be able to claim back some of the monthly loan or credit-card payments that made up the PPI payments, plus interest. You can claim for mis-sold PPI if you were unemployed at the time you took out the loan, if you were told that the PPI cover was compulsory or if you were not even made aware that you had cover, but were charged anyway.Can I make a complaint for mis-sold PPIs if the policy has expired?
You can make a complaint if you still have the policy or the loan details, and as long as you didn´t claim anything from the policy when it was in force.
If I complain about a mis-sold PPI how will it affect my policy?
If your complaint is successful, you will be compensated with a full refund of all premiums paid for the PPI, plus any interest. Once this has been done, your cover will cease, and your policy stopped.
How long will it take for my PPI reclaim to go through?
It depends how long the loan or credit-card companies take to respond to debts.org. We are unique because we are both a debt counselling service and a claims management company. In other words, you can receive debt help and reclaim cash at the same time.
How much does it cost to claim PPI back?
There will be no fee if you don´t receive a refund or settlement from your bank. If you do receive a refund, the fee will be 25% of that refund.How do I start my claim for mis sold PPI?Either submit your information via our online application form or call a claims advisor free on 0800 520 0923.
Can I claim for mis sold PPI myself?
It is possible to claim for mis sold PPI yourself, but highly advisable to use a professional debt counselling company who can manage your affairs and help get you the maximum payout possible.
Do I have to pay up-front fees before you can claim my PPI back?
Absolutely not. You only pay us a fee when we successfully manage to claim back your PPI payments with interest.Can I stop repaying my loan until PPI claim has been settled?
No. Keep up the repayments until a settlement has been reached as there are no guarantees of success.
How many PPIs have been mis sold?
It is estimated that between 7 and 10 loans sold with PPI have been mis-sold for many reasons. If you think you have been mis-sold PPI, call us free on 0800 520 0923 or fill in the online form and we will get back to you.
Labels: loans sold, ppi claim, up-front fees
PAYMENT PROTECTION INSURANCE (PPI)
posted by debts.org at 01:06
HOW DOES PPI WORK?Payment protection insurance usually adds around 20% to your loan, and with 20 million policies in circulation, PPI is a £5 billion business.It has been proved that PPI providers have been overcharging customers by £1.4 billion a year, and in many cases the policies are mis-sold. Only 11% of claims for PPI are every successful.
Debts.org specialises in getting your money back. Unlike other claims management companies, we are part of a leading insurance company, which means we have inside knowledge of the business, and we make it our business to get what’s rightfully yours.Our no win no fee policy means we only charge 23% +VAT if your claim is successful and because of our size, we guarantee you a level of service and expertise that smaller claims companies cannot match.
Start your PPI claim now by completing the online form or calling the number above – our friendly and professional staff are ready to take your call between 8.30am-9pm Mon-Fri and 10am-5pm Sat-Sun. You could reclaim thousands if any of the following applied to you at time of taking a PPI policy:
• You were under 18 or over 65 years of age
• You worked less than 16 hours a week
• You were employed on a temporary or contract basis
• You suffered from stress or backache
• You had an existing illness
• You did not know PPI was part of your loan
• You were not told about the cost of the insurance
• You were not asked about any other insurance you may have had
• You were told the insurance was necessary for you to get the loan
• You were not told that the same policy could potentially be bought cheaper elsewhere
Labels: bussiness, over charging, PPI
What is a mortgage exit fee?
posted by debts.org at 00:58
If you ended a mortgage ahead of the agreed term, either because you have paid the loan off early or you have switched mortgage providers, then you probably paid a mortgage exit fee on the insistence of your bank/building society. Mortgage exit fees are also known as deed release fees, final administration fees, sealing fees, discharge fees or final redemption fees. Whatever the banks chose to call them, they can leave you out of pocket.Reclaim mortgage exit fees
If you have paid a mortgage exit fee, you could get it refunded with debts.org. Our no win no fee policy means that even when we win back your mortgage exit fee, we will only charge you a flat rate of £65. As part of a leading insurance company, we guaranteed you a professional, friendly service that smaller claims companies cannot match.
Before you reclaim your mortgage exit fees:
• Check the small print in your mortgage contract for details of early exit penalties
• Find out if you were charged for switching mortgage or for paying it off
• Compare the exit fee with the amount written in your contract
If you were overcharged or you were made to pay a fee that was not stated in your contract, one of our professional counsellors will contact your lender and get back what is rightfully yours.
Labels: claims companies, contract, mortgage exit fee, switching mortgage
Top tips to save energy and money
posted by debts.org at 00:54
• Insulate your wallsYou could save up to £175.00 a year in an average household by insulating your walls. You may even be able to get a grant to help towards the cost of installation of home energy efficiency measures, such as cavity wall insulation or loft insulation. Grants are available to any household, and not just available to people on low-income or benefits.
• Comparison websites for energy suppliersCheck out the comparison websites which compare the cost of different energy suppliers in your area. Suppliers now offer a range of deals to new customers reduce the cost of installing energy saving and renewable materials. Visit www.energysavingtrust.org.uk/gid.
• Get a new boiler and controls to save moneyIf your boiler is more than 15 years old, you should replace it with a new energy-efficient one. A high-efficiency condensing boiler will save you hundreds of pounds a year.
• Look after your fridge
Never leave fridge or freezer doors open longer than necessary, and avoid putting hot food in the fridge. Defrost the freezer regularly and check all door seals are working properly. Simple measures could save you up to £100.00 a year on bills. If you buy a new fridge make sure it has the energy saving logo. Most people who have debt problems in the UK, could avoid more problems in the future by saving energy and saving money at home.
• Cover your hot water tank
Fit an insulating jacket on your tank to save energy – it will only cost you a few pounds.
• Use energy efficient light bulbsYou could save up to £60 a year by switching to energy-saving light bulbs.
• Defeat draughts and double glazingIf you fill gaps under skirting boards with beading or mastic sealant, you can save money off your annual heating bill. Double glazing will save you a lot more. Double glazing cuts heat loss through windows by at least 50%. If you only want to replace some of your windows, choose the ones which cost you most to heat such as the living room.
• Insulate your loft
If you insulate your loft to a minimum of 270mm you could save up to £205 a year on heating bills.
• Save water at home
If you are unfortunate enough to be stuck with a local water supplier, and are not free to swap suppliers, then have a water meter fitted, otherwise you could find yourself paying the same as the family next door, even though you may live alone. If you find the change does not save you money you can change back to the old system within 12 months.
If you are struggling to pay your energy bills, and would like some free advice and help about how to reduce your bills, or to see a comparison site, check out debts.org. If you have debt problems which seem to be spiralling out of control, contact us free of charge and one of our friendly team will discuss a debt management plan with you and give you free debts advice and guidance.
Labels: debt problems, water metre
Should I switch energy suppliers?
posted by debts.org at 00:50
If you find a better deal there is no reason at all not to switch energy suppliers. Having said that, don´t switch to a fixed rate contract which could tie you in to an agreement when you could find a better deal later in the year with someone else. You should regularly check with an energy supply comparison site to make sure you are not paying over the odds for your electricity, and to find out where the best deals are. By switching suppliers, if you live in a big house, you could be saving over £300 a year on gas. Average households could be saving between 15 and 20% on gas.Internet energy bills to avoid debt problemsIf you are already suffering from minor debt problems and are looking to reduce your outgoings, you will find it cheaper to get power from one supplier, and if you apply online and are billed through the internet it will be cheaper still. A dual-fuel package, meaning you use the same supplier for gas and electricity, can work out cheaper but make sure you check the online comparison sites before committing yourself to any new package.Paying energy bills by direct debit to reduce debts Paying by direct debit can save you 10% on your bill with almost all suppliers, and you should look out for cash-back incentives, which are offered by various energy comparison websites. Don´t rely on estimated bills, but make sure you do a meter reading yourself and contact the provider as soon as possible if it differs from the one you have been billed for.
If you feel you have overpaid energy bills in the past, which has resulted in debt problems, you can contact debts.org free of charge for advice and guidance on debt management. Our friendly and helpful staff will help you to arrange a debt management plan if your debts are spiralling out of control. If you are looking to compare energy suppliers prices in your area, check out the information on debts.org.
Labels: cheaper, gas bill, household, internet, suppliers
Bad billing for energy suppliers
posted by debts.org at 00:16
A consumer company has recently found that energy companies are the worst culprits when it comes to sending wrong bills to customers.Over 9 million households have received at least one inaccurate energy bill during the past two years, and 6 million of these reported receiving more than one inaccurate bill during the same period of time.
Millions of customers were told unexpectedly they owed money to their energy supplier, due to a discrepancy between the estimated bill and the actual meter reading. Instances of incorrect bills being sent to customers by energy companies has increased over the past 12 months. If you are in debt after overpaying energy bills, contact debts.org for free help and advice.
Correspondence and billing
Power companies have also shown to make more mistakes than banks, councils, water companies and even HM Revenue and Customs when it comes to correspondence and billing. Ann Robinson (not that one), from uSwitch.com, said: “The energy industry´s reputation for accuracy is suffering because it is still relying on an estimated billing system. Not only can this leave people out of pocket but it can also damage their confidence in their supplier.”
The survey consulted nearly 2,400 UK energy customers, and the average amount of time it took to sort out billing problems was 2 months – far too long if someone has been grossly overcharged through no fault of his own. Figures also showed communications companies, including providers of broadband, telephones and digital televisions are now ranked third for inaccuracy. The DVLA were among companies offering the most accurate correspondence. Debts.org will give you guidance and free helpful advice about how to reclaim your overpaid electricity bills.
Energy suppliers to make it easier
Customers are being asked to do more to ensure they receive an accurate bill, and it has become easier for customers to phone in, e-mail or text their latest meter readings. New smart meters should also help with discrepancies between actual and estimated bills. If you are suffering debt problems already, you should contact debts.org who can help arrange you a debt management plan or help to claim money back for your overpaid energy bills.
According to uSwitch.com: “Suppliers are starting to get the message across to consumers that it is in their best interests to supply up-to-date meter readings. This will go some way to improving accuracy and changing consumer perception.”
Labels: bad billing, bill, energy bills
IVAs and Bankruptcy
posted by debts.org at 02:47
In some cases, a debt management plan is not an option and your debts may be so great that you need to consider an Individual Voluntary Arrangement (IVA) or bankruptcy. Changes in bankruptcy laws plus increased levels of debt in the UK, has seen massive increases in people opting for IVAs or bankruptcy to help with debt problems.Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement (IVA) is an agreement with all of your creditors, regarding how you will pay off your debts to them. This meeting is done under the supervision of a licensed insolvency practitioner (usually an accountant or lawyer), who will do all the work for you. A specialist debt management company will be able to advise you and arrange an IVA for you.
Advantages of an IVA
The best thing about an IVA is that it effectively stops the creditors knocking at your door, and it gives you more control about how your assets are dealt with, than if you declared bankruptcy, for example. An IVA does not affect your professional status, as bankruptcy can do. However a note of the IVA will remain on your credit record for at least six years.
Disadvantages of an IVA
An IVA can cost money to set up, which is money you could otherwise have spent paying off your debts. You should shop around for the cheapest IVA offers, when searching for an insolvency practitioner, as fees vary considerably. Debts.org can give you free advice and guidance about setting up an IVA and about finding the best debt solution plan to suit your needs. It is also worth noting that if you default on payments agreed in your IVA, your insolvency practitioner is obliged to petition for your bankruptcy. If you set up an IVA, you need to stick to the agreement rigidly to avoid further debt problems.
How long does an IVA last?
An IVA usually lasts for between two and five years, depending on your individual debt, and the time it takes you to pay off your creditors. You will be required to account for your spending and to put any extra money towards your debts, such as a pay rise. If you have equity in your home, or an endowment policy, you may be asked to cash these in to pay off part of your debt.
What does an insolvency practitioner do?
In the case of an IVA, your insolvency practitioner will help you to arrange your assets and liabilities, and to work out how much you need to live on, and how much you can afford to offer your creditors. He will then help you apply to the court for an interim order, which puts an immediate stop on your creditors taking legal action against you. The insolvency practitioner will contact all your creditors and outline your payment proposals. This can be done in writing or he can call a meeting. This largely depends on the extent of your debts, and how many creditors are involved.Providing 75% of your creditors agree to the terms of the IVA, the arrangement will then be implemented. Whatever the fee is for the insolvency practitioner, it will normally be taken out of the monthly payment you plan to repay your creditors with.
Who do I speak to about an IVA?
You can speak to our professional, helpful staff at debts.org who will guide you through the process of arranging an IVA or a debt management plan to suit your needs. Be wary of firms who advertise IVAs heavily in the press and on the TV, and of those who generate large fees by suggesting IVAs. Debts.org will recommend the right debt solution for you, and we always have your best interests at heart. Debt affects millions of people a year, and there are now more debt options to help you. There are always ways out of debt, and the first thing to do is face up to your debt problems, and take the first, important step of contacting a debt specialist company, such as debts.org, who will help you get back on your feet with a minimum of fuss.
Bankruptcy and debt problems
Never consider bankruptcy an easy way out. It really is a last resort, and the decision to declare bankruptcy may even be out of your hands. You can petition for bankruptcy yourself, but it is much more likely to be one or more of your creditors who decide to take this course of action against you.Incredibly, creditors who are owed as little as £1,000 can make you legally bankrupt. Bankruptcy for such a small sum is highly unlikely, but it is a possibility. If your debts are under £5,000 you can apply for an Administration Order instead, where the court will assess your financial situation before making a decision. It may be agreed you can pay off your debts by reaching an agreement to pay back instalments monthly.
What will I lose if I am made bankrupt?
If you are made bankrupt you will lose just about everything (depending on the extent of your debts), apart from your pension. An official receiver or insolvency practitioner will be appointed to take over the management of your finances. This means, in layman´s terms, that he will seize everything you own and sell it to clear your debts. This could include your home.
What can I keep after bankruptcy?
If your debts exceed your assets, you may only be allowed to keep some basic household goods, and/or tools which you need to work with. Any income you have which is deemed to be over the necessary amount of money you need to live on, will also have to be handed over. You will also have to tell the bank about your bankruptcy if you try to open an account.
Good news about bankruptcy
Most bankrupts will now be automatically discharged after just one year, or even earlier in some cases. This means that although you are still liable for your debts for three years after being made bankrupt initially, the remaining debts are written off, leaving you free to make a fresh start and to rebuild your life. Student loans, however will still have to be paid back.
Bankruptcy Restriction Orders
If you are considered to be dishonest, reckless or to blame for bankruptcy, you could face a bankruptcy restriction order. This can last up to 15 years, and could restrict you from getting credit of more than £500 without disclosing your status. Breaching such an order is a criminal offence, and could result in a prison term.Bankruptcy terms can differ between England, Wales, Northern Ireland and Scotland, and it is always best to seek professional advice about bankruptcy before taking it any further. Debts.org can help you make the right decisions at the right time if you are struggling with debt problems. You may find there are better alternatives to bankruptcy that you were not aware of previously, and which can help you to see a light at the end of the tunnel.
How to deal with the bailiffs
posted by debts.org at 02:44
Know your rightsIf you are unable to pay a substantial debt, one course of action your lender may take is to send in the bailiffs to take away some of your possessions and sell them to recover their money. It is vital you know your rights where bailiffs are concerned.
Do I have to let the bailiffs in?
If a bailiff calls, don´t invite him into your house. They may want to discuss things inside your home, or they may try to push past you and enter your house, so if you suspect the bailiffs are at the door, answer it with the chain on. All bailiffs should carry identification, so always ask for this plus any warrant they may be carrying. It is not unheard of for creditors to send people to houses to collect payment who are not actually bailiffs.
What if a bailiff forces his way into my house?
A bailiff cannot lawfully use force to gain access to your home. They can only enter by means of peaceful entry. Pushing their way past you at the door is NOT peaceful entry. Bailiffs should know your rights, but they may not always inform you of them.
The word ´distress´ is used in bailiff terminology as meaning the seizure of goods as security for payment of a debt, but don´t allow them to threaten or intimidate you in your own house. Also remember a debt collector or enforcement agent may not be the same thing as a bailiff. A debt collector has no powers to seize good from your home, and a bailiff only has the power to do so if he has a court order, known as a warrant of execution to back up his actions.
No force allowed by bailiffs
Bailiffs may have the authority to seize goods from your house, up to the value of the money you owe, but they are not allowed to force themselves into your home. If they find an open window they are legally allowed to climb through it, but you do not have to let them into the house. Surprisingly, if bailiffs have already been inside your house, they can legally enter a second time to take any extra goods they feel should be sold to pay off your debt. It is vital, where possible, you don´t let the bailiffs in to your house on their first visit.
What can the bailiffs take?
What the bailiffs are allowed to take depends on what the debt is and how much money you owe. Generally speaking, basic household goods like clothing and bedding will not be touched, and they can only take goods that belong to you personally, or jointly with your partner. Recovering debt by use of a bailiff has a fairly low success rate, although it is still a common method of debt recovery among creditors. It is very difficult for creditors to find out about your financial circumstances if bailiffs cannot get access to your house. This makes it even more difficult to distinguish those who can´t pay from those who won´t. Bailiff´s fees also get paid out of the sale of any goods they remove.
Avoiding the bailiffs
If you are struggling with debt problems, and feel your debts are spiralling out of control, debts.org can help you to find a solution to your debt problems. Speak to one of our trained, friendly staff who will offer you sound advice and guidance to help solve your debt problems. We can arrange a number of debt help solutions for you after just one phone call. Contact us online if you prefer, and we will get straight back to you. Millions of people experience debt problems every year in the UK, and we help to get people back on their feet, and look forward to a debt-free future. We will discuss the best debt management programme (DMP) for you, plus explain individual voluntary arrangements (IVAs) and even bankruptcy options. However serious your debts are, there is always a way out, and debts.org is here to help you.
Beware of debt consolidation
posted by debts.org at 02:41
A consolidation loan is when all of your debts are lumped together, and you only pay off one amount each month. A consolidation loan, in effect is a replacement debt, and you need to make sure the loan offers a much lower rate of interest than your current debts are costing you. Amalgamating your loans is not clearing them.It is estimated that around 80% of people who take out consolidation loans go on to run up further debts. Be sensible and make sure you are one of the 20% who take out a consolidation loan sensibly and having read the small print. One of the biggest problems with consolidation loans is that, once they have been used to pay off your credit cards for example, your statement will then show you owe the credit card company nothing. It is very tempting to start racking up bills on credit again, which will leave you in a worst financial position than before you took out the consolidation loan.
Consolidation loans and debt helpWhen looking for a consolidation loan, the first thing to consider is the interest rate you will be charged – make sure you shop around and find the lowest one available. Never borrow more than you need. It may be tempting to borrow a bit extra for that special holiday to celebrate getting your creditors off your back, but you will end up paying back the extra credit with plenty of interest.
Flexible consolidation loan for debt problemsTry to get a flexible debt consolidation loan, so that you can pay off more than the required amount if you have an increase in salary, or find yourself in a better financial position than before. Some consolidation loans will charge penalties if you pay them off early, so make sure you are aware of this before signing anything, or ask for a more flexible loan.
Secured and unsecured consolidation loansConsolidation loans can be secured or unsecured, but think very carefully before taking out a secured consolidation loan. If you default on payment with a secured consolidation loan you could lose your house. A secured loan may offer a lower interest rate but think of the consequences if you fail to make the repayments. Even if you have the slightest concern about defaulting on a secured consolidation loan, don´t do it.Payment protection insuranceAlthough your lender will probably try to persuade you to take out payment protection insurance, think it through, as this will add a considerable amount to your consolidation loan.
Payment protection insurance is to protect the lender, in case you are made redundant, lose your job or become ill and unable to work. Often this insurance does not come into effect until a few months after you are unable to pay the loan, so make sure you think it is worthwhile before agreeing to anything. You may be sold the insurance policy as giving you ´peace of mind´, but you will also be paying for the ´peace of mind´ of your lender and insurer.Avoid more debt by paying back quicklyWhere possible, attempt to pay back the loan repayments as quickly as possible. The longer you take to pay off your loan, the more interest you will pay, and the less motivated you will be to clear the debt.
Always take your time to shop around and don´t be tempted by those shocking adverts for loans with high interest, inflexible terms and conditions and high pressure sales tactics. You could end up with having your house repossessed if you don´t take your time to choose the right consolidation loan for you. A consolidation loan is a long term commitment, so make sure you choose it carefully.
Remortgaging and debt problems
posted by debts.org at 02:35
One way of releasing equity from your home is to remortgage the property, or by taking out a separate loan against your home with another lender.Be very cautious.
Weigh up the pros and cons of remortgaging your houseRemortgaging can increase your debt if not handled properly.
You must weigh up the pros and cons and never rush in to a remortgage deal unless you understand the repercussions fully.
By using your house as security for a loan, you will be able to pay off your debts, providing you have sufficient equity.
However, by borrowing money against your house you are putting your home at risk, and if you can´t make the repayments each month, the mortgage interest rates could rise and you could be at risk of house repossession.
A secured loan and repossession
A secured loan against your home can last as long as your original mortgage, so you could end up paying much more overall.
Your monthly payments may appear lower, but you have spread your debt over a much longer period of time.
If you try to borrow money this way, try to keep the term of the loan as short as possible. If you increase the term of your current mortgage, try to overpay so that the amount reduces quicker
Switching your mortgage
If you switch your mortgage to a different lender altogether, you may be able to borrow more money to pay off your debts without increasing your monthly payments.
New customers often receive better deals and offers. People who are not even in debt, change mortgage lenders regularly to make the most from their money.
However, if you are thinking of remortgaging your home to relieve your debt problems, always remember:
• You may have to take into account redemption penalties.
These are charges made by the lender for cancelling/paying off your mortgage early. This could offset the money you will gain by refinancing.
Legal fees of up to £500 will also be charged. The new lender will probably also charge an arrangement fee for setting up the mortgage plus charge for a survey.
Find out the exact cost of your remortgage before agreeing to anything.
• Some lenders may agree to pay these fees, which could still mean a substantial saving for you, and could help with your debt problems.
The larger your current mortgage the more you are likely to save, and these savings could help relieve your debt problems.
• Before you switch your mortgage, contact your current lender and tell him you plan to shop around for another deal. They may well offer you a better deal to keep your custom.
• Always remember, that if you use a home loan to pay off your debts, you still have one large debt to pay, and it has been borrowed against your home.
Don´t look at a remortgage as an easy way out.If you feel your debts have spiralled out of control, you should seek professional advice from a specialist debt company who will give you free guidance.
Here at debts.org, we can arrange debt management plans (DMPs), Individual Voluntary Arrangements (IVAs) and bankruptcy.
We will even talk to your debtors to save you time and hassle.
Our friendly and professional team of staff are here to help you, and we are only a phone call away.
Alternatively, contact us by filling in the online form.
Debt help and advice on forum boards
posted by debts.org at 02:32
For free debt advice, there are a number of companies and organisations who can help you find a debt solution.• The Consumer Credit Counselling Service (www.cccs.co.uk) is a charity with a first class reputation. They can send you self-help packs, arrange counselling sessions and negotiate with your creditors on your behalf.
• Citizen´s Advice Bureau (www.citizensadvice.org.uk) offers a drop-in centre in most towns with trained volunteers who will help to arrange a debt management plan between you and your creditors.
• Also check out Payplan (www.payplan.com) and National Debtline
(www.nationaldebtline.co.uk) who can give you free debt advice and guidance.
• If you prefer to get some advice yourself, one of the best ways to do it is to check out the forum board at www.debts.org , where you will find plenty of other people in the ´same boat´ who can offer excellent advice about particular debt problems which they are probably experiencing, or have overcome themselves.
• Contributors to the forum board have experienced various different levels of debt, and many have only faced their debt problems after speaking to people in the same situation. This will encourage you to face your debt problems, and to realise there are other people who have been in the same or worst financial situations than you, but have managed to come out the other side. The aim of a debt forum is not to be judgemental but to give other people help with their debts straight from the ´horse´s mouth.´ Debt collectors and bailiffs
Debt forum boards can also give you advice about how to write letters to creditors, plus information about what to do if threatened with house repossession, debt collectors or bailiffs. There is no longer any need to suffer in silence, and you should take positive action and check out the forum board at debts.org. This could be the first step towards a debt-free future.
Labels: forum boards
Get serious about debt problems
posted by debts.org at 02:27
How to clear your debtsIn order to clear your debts you need to completely change your mind-set. If the days of luxury holidays, new cars and expensive jewellery are just a distant memory, then it´s time to join the real world and face up to your financial situation today.
Debt problems and how not to tackle themIf you have debt problems, the worst thing you can do is think ´I owe £20,000, why not add another £1,000 for a holiday? It won´t make much difference.´ Yes, psychologically, when you get home with sunburn and see yet another credit card statement on the mat, it will make a big difference. Your debts will spiral out of control and your health could also be affected.
Risking repossession of your house
If you are still finding the money, or credit for life´s luxuries, but neglecting your priorities, you could find yourself risking repossession of your house. Be honest with yourself and work out the best way to reduce your debts, not increase them.Things you should do to reduce debt
• Ensure your scheduled payments are set up to leave your account the day after your salary is paid into it. This way, your debts will be paid before you are tempted to spend your money on something else.
• Consider taking a second job until your debts have been cleared.
• Consider taking a lodger, and check out the government´s rent a room scheme, which means you can receive up to £4,250 a year tax free from the tenant. For more information on this, check out www.direct.gov.uk . You would need to check how this would affect any benefits you are receiving, but could be a good way of finding a solution to your debt problems.
• If you have a garage or loft full of old furniture, clothes or toys, consider doing a car boot sale. These are not only good fun, but you can also earn some good money. Remember, one man´s trash is another man´s treasure, so don´t throw anything away which could be useful to someone else.
• If you use the same supermarket for food and petrol, collect your points for future discounts and special offers. Loyalty points add up and you could end up doing your entire shop for Christmas on the strength of them. Avoid further debt problems, by collecting points instead of more debt on your credit card. Alternatively, check out the local market for fresh fruit and vegetables – you could save a packet.
What NOT to do if you have debt problems
• Only use a debt management or a debt specialist company who will give free advice and guidance.
• Never be tempted to loan money from unregulated companies with astronomical interest rates. Your debt will never be cleared, and you will be hassled continually if you miss a payment.
• Always take a shopping list when you go to the supermarket, and never shop when you are hungry – you will be more likely to throw things in the trolley you don´t really need, or you can´t afford.
• Always look out for special offers in the supermarket including 2 for 1, or buy one, get one free. Particularly look for offers on things you will always need such as washing powder, soap etc.,
• When buying clothes, look around the charity shops, where plenty of bargains can be had, including designer gear.
If you feel your debts are drowning you, and there is no way out, contact debts.org who can arrange a debt management plan (DMP) or an Individual Voluntary Arrangement (IVA) or help find a debt solution to suit your needs. Our friendly, trained advisors are here to help, and we offer free professional advice and a sympathetic ear.
Labels: christmas, job, tenant
How to deal with creditors
posted by debts.org at 02:24
If you are struggling to cope with your creditors, and you have already been refused a consolidation loan or a cheaper credit card to reduce your debts, then it is time to take the bull by the horns and take action.Make an offer of payment to avoid debt problems
Lenders are always more likely to cut you some slack if you show a willingness to pay something. Even if you can´t afford the total repayments each month, make your creditors an offer of payment, based on what you can afford. Credit card debt affects millions of people every year in the UK.Write to your creditors
Write to all of your creditors, enclosing a copy of your income and outgoings, and make an offer of payment. The worst thing you can do is ignore creditor´s letters and phone calls. Make it clear that eventually you aim to pay them all off in full, and when your financial circumstances are better, you will increase your payments. Even offer to review the situation on a quarterly basis, and ask them to freeze any further interest payments in future.Court action and credit card debts
If your creditors threaten court action, politely write to them and explain that you have made the best offer you can to pay back your debt, and if they insist on court action you will produce evidence of all correspondence to the court. For this reason, keep any copies of letters you have sent and received from your lenders.
The court will be impressed that you have at least made an effort to repay the debts, and this could definitely work in your favour. Credit card companies know that a judge is likely to look favourably on you if you have made an effort to repay the debt, but they are hoping you are unaware of this.Alternatively, if the creditors do not accept your offer of reduced monthly payments, tell them you will have to consider taking out an Independent Voluntary Arrangement (IVA), which should get a quick response.
If they still insist on taking you to court, then so be it, but remember to keep all correspondence and all offers to pay in writing to show to the court. If you are struggling with debt and you think a debt management plan (DMP) or an Independent Voluntary Arrangement (IVA), could help you, contact debts.org today. Our friendly professional staff will give you free advice and guidance, and we will even speak to your creditors on your behalf.
Labels: courts
Prioritising debts and snowballing debts
posted by debts.org at 02:13
Now, more than ever before, there are a number of debt solution options to help improve your finances, including snowballing debts. You can get a better deal on your credit card debts by transferring them to a low interest or a zero interest card, or consolidate your debts by means of a personal loan, or even release some equity from your home by remortgaging. Whichever option you choose, the aim is the same. To free up some money to pay off your debts.Prioritise your debts
If, however you are not in a position to do any of these things there are other options. Firstly you need to prioritise your debts. Sit down with a paper and pen, and work out which debts have the highest interest rates, and which ones are secured against your home, or could result in court action, such as none-payment of council tax.Pay more off the debt with the highest interest
Snowballing debts is when you arrange to pay at least the minimum payment for each debt, and pay more for the debt with the highest interest rate.
Throw as much money as possible at the debt with the highest interest rate, while still paying a small amount towards the other debts. Carry this on until the highest credit card debt has been cleared, and then start to pay more on the credit card with the second highest interest rate.
This method is known as snowballing, as the debts reduce quicker as time goes by.Snowballing your debts
Example
If for example you owe £1,000 with an Annual Percentage Rate (APR) of 22%, your minimum monthly repayment would be £50 per month.
If you owe £5,000 with an APR of 12% your minimum monthly repayment would be £150.
If you owe £10,000 with an APR of 6% your minimum monthly repayment would be £300.
The total amount you owe is £16,000, and your minimum repayments each month are £500.
These particular debts would take over 3 years to pay at the minimum repayment rates.
In this case, you would concentrate on putting any spare money towards the first debt of £1,000 with an Annual Percentage Rate (APR) of 22%. Once that is cleared you can throw more money at the debt with the second highest interest rate and so on. This is called snowballing your debts.
BEWARE – Once your bank realises you have increased your minimum payment on the debt with the highest interest rate, they may well offer to reduce your minimum interest rates. Don´t accept this offer, or you will be paying your debts off for years to come.
Psychologically it is easier to tackle smaller debts first, but always look at the debts with the highest interest and you will reduce them quicker than you imagined possible. By snowballing your debts you will feel a sense of satisfaction much more quickly, and reduce your credit card debts substantially.
If you feel unable to cope with your debts, contact debts.org for free, professional advice about coping with debt. We can arrange debt management plans, (DMPs), Independent Voluntary Arrangements (IVAs) and bankruptcy arrangements, by speaking to your creditors on your behalf. Our friendly team are here to help you, so call us or fill in the online form.
Labels: APR
Choosing the right personal loan for you
posted by debts.org at 02:09
Choosing the right personal loan to suit your needs can help resolve your debt problems and improve your finances. Choosing the wrong personal loan can plunge you deeper into debt.What is a personal loan?
Taking out a personal loan is the normal way of borrowing money from a building society, a bank or a loan company. You can normally borrow up to £20,000 for up to ten years, depending on your finances.
What are secured and unsecured loans?
A secured loan is one that is linked to your house. In other words, if you don´t keep up the repayments your home could be at risk. You may be offered a cheaper interest rate on this type of loan but if you think there is any chance you may default on payments, don´t take the risk of losing your home. An unsecured loan is not tied to anything, but if you default on payments you will end up with a bad credit rating. This could result in your being prevented from taking out any more credit including mortgage, credit cards etc., You could also be prevented from taking advantage of any interest-free deals in a shop.
Compare personal loans
Make sure you shop around before you decide on the best personal loan for you. The more you borrow, generally, the lower the interest rate will be. Rates vary from around 5% up to 20%. Remember that personal loans are no longer the domain of banks and building societies, and you can get better deals through supermarkets. Lenders also calculate the Annual Percentage Rate (APR) in different ways, so don´t automatically assume, loans with the same APR will work out exactly the same. Loans for specific items such as cars are also available, and often with lower interest rates. When comparing APRs, make sure you are comparing like for like, and always ignore monthly interest rates, advertised in shops, as these are always lower than the annual rate you will be expected to pay.
Loan repayments to avoid debt
Loans are repaid in monthly instalments over an agreed period of time. You could have to pay a penalty if you want to pay off the loan earlier, so beware of the small print. Remember, the longer the repayment period, the more interest you will have to pay, so always go for the shortest repayment time you can manage. Don´t increase your debt problems by taking out a loan over a short period of time that you will find impossible to pay back so quickly.Flexible loans to reduce debt problems
Flexible loans allow you to pay back the money whenever you want, so if you suddenly come into money or have a wage increase, you can pay back more with no penalty. Interest rates on a flexible loan may be higher, so always check exactly how much you will be expected to pay back as a minimum amount. If a bank or building society does turn down your loan application, they are obliged to explain the reasons why.
If you are suffering personal debt problems, or struggling financially, and have been refused a loan, contact debts.org who can help get your finances back on track. Our specially trained and friendly staff will give you free guidance and advice to find the best debt solution options for you. Millions of people suffer debt problems every year in the UK, and we are here to help reduce your debts, with a debt management plan or an independent voluntary arrangement to give you a debt free future.
Labels: compare
Debt forums provide debt solutions
posted by debts.org at 03:32
The best way to get free, relevant help with you debt problems is to log onto a debt forum. Debt forums are full of useful comments and advice from people who are suffering debt problems, just like you.You may feel very alone when you are in debt, but rest assured there are thousands of people in the same boat, and many of them write on debt forums. By logging in to a debt forum, you can share your debt problems confidentially, without posting your name if you prefer.
Debt management plans
By entering a debt forum, a debt consolidation forum, a debt management forum or a debt help forum, you can find free advice about remortgages, debt management plans (DMPs), Independent Voluntary Arrangements (IVAs), bankruptcy and house repossession.People with debt problems can feel awkward or embarrassed to talk about their financial problems face to face, but by entering a debt forum, they can add comments, or simply read through the invaluable debt advice that other forum members post.The meaning of DMPs or IVAs
If you are unsure about the meaning of DMPs or IVAs, and how they can help you, you can read about other members of the debt forum who may well have either gone through one of these plans/arrangements, or who is thinking of doing so in the near future.
On many debt forums, expert advice is also offered from trained professional staff who work in specialist debt solution companies, and who can offer you help and point you in the right direction, to find the best debt solution for you.
Individual Voluntary Arrangement
By looking through a debt forum, a credit card debt forum, or a consumer debt forum, you may be able to work out whether a debt management plan, an individual voluntary arrangement, a remortgage or even bankruptcy is the debt solution you need to take. Members of debt forums have more often than not been through debt problems before, and they can offer you the best advice possible to help solve your debt problems.
Debt forums and the credit crunch
Debt forums in the UK have grown in popularity since the credit crunch, and more people are joining up to receive free debt advice on budgeting, house repossession, credit card debts, store card debts and bank loan debts.
Take a look around the various debt forums online, and from the privacy of your own home, you can browse a debt forum, a debt consolidation forum or a debt help forum, in comfort and at your own pace.
Forums on debt and saving money
Not only do forums on debt give you invaluable advice about solving your debt problems in the UK, but they can also offer great money-saving tips. Debt problems can often be resolved by changing suppliers of gas and electric, consolidating credit card debts, changing your water company or cutting up your store cards.
Practical and handy hints about debt management, which won´t cost you a penny, can be picked up daily from debt forums, and can save you hundreds of pounds in the long run. You will also find useful e-mail addresses of government organisations and debt charities on a debt forum, which can help you with free debt advice in the UK.Debt help after reading a debt forum
After reading a debt forum, you may then want to take action and contact a specialist debt advice company in the UK.
If you want further debt advice about debt management plans, individual voluntary
arrangements, house repossession, remortgage, credit card debts or rent arrears, you should contact a specialist debt company who can contact your creditors and arrange a lower monthly payment for you, which could leave you debt-free in just 3 years. To find out more about debt forum boards and how they can work for you, take a look at our debt forum.
Labels: goverment, hints on debt management, UK
What to do if you are refused credit
posted by debts.org at 03:26
Don´t panic take actionAlways remember that credit is never handed out to everyone. You need to show lenders that you can afford to make your repayments on time every time. By doing this you are much more likely to get the credit deals you want. If you are among the many people who have been refused credit, don´t panic but take action.
Your credit report
Your credit report lists your borrowings and shows how well you are managing repayments. It shows your credit history, what credit accounts you have had in the past few years, and how you have managed financially with credit repayments. Order an annual credit report to make sure all details shown on it are up to date, as lenders will check your credit report before they decide whether to give you more credit or not.
Top credit report tips include:
• Take responsibility for your own money. Pay your bills on time and make repayments on cards, loans and mortgage repayments on time. You will end up owing more if you miss payments, plus have to pay penalties which will damage your credit rating.
• Check your credit report regularly so you can monitor your progress. Make sure every entry is correct as one single error on your credit report could result in refusal of credit.
• Contact your lenders immediately if you are worried about repayments. The sooner you contact them the more likely they are to work out a schedule of repayments that you can afford, or even arrange a temporary payment ´holiday´.
• Sit down, go through your debts or outgoings and income, and organise a budget which you can stick to. Price comparison sites can find you better deals on utilities, as well as mortgages and credit card interest rates. The Financial Services Authority financial healthcheck could help you at www.moneymadeclear.fsa.gov.uk.
• Never try to borrow more credit to get you out of trouble. Face the debts you have head on and you will find a way out. If you rack up more debts, you could be rejected for credit when you really need it in the future, as this will show up on your credit report.
• Look into debt consolidation where you can roll up several debts into one, single loan. You will find several financial comparison sites on the internet with financial and mortgage calculators to help you.
• Look for ways to supplement your income. Perhaps you could take in a lodger, or sell off unwanted clothes or furniture at the market or on e-bay. You may also consider a part time job in the evenings or at weekends.
• Remember that if you have a partner with financial problems, his details will be linked to yours on a credit report. A lender´s response to your application can be affected if you have a financial association, as your partner´s credit report will be assessed too. If you are linked to an ex, who no longer lives with you, tell your lender as soon as possible so this can be removed from your credit report.
• If you are struggling to cope with your debts, contact a specialist debt management company such as debts.org who can walk you through the debts management minefield, and help to achieve a debt-free future for you and your family. You can also get free advice from the Citizen´s Advice Bureau at www.citizensadvice.org.uk, from the Consumer Credit Counselling Service at www.cccs.co.uk or National Debtline at www.nationaldebtline.co.uk
Check your Experian credit report online with a free trial of CreditExpert, the UK´s leading online credit monitoring and ID fraud protection service.
Labels: ID fraud, manage debts, partner, report
what actually is a credit report ?
posted by debts.org at 03:23
You may not have thought much about it, but the chances are that you have a credit report. Credit reports log a personal history of your credit, including loans, mortgages, credit card debts and even mobile phone contracts. Your credit report will show how regularly (or not) you make repayments. Lenders will use your credit report to work out whether they are safe to give you credit or not. You can get your credit report, free of charge with CreditExpert. The more you know about your credit report, the better position you will be in to work out your finances. Useful things to know include:• If you are over 18 and have ever had a credit card, a bank loan or other credit, you will most likely have a credit report. These reports are held by credit reference agencies, and the largest in the UK is Experian.
• In addition to listing your credit accounts, your credit report will show whether repayments are paid on time and in full, and will indicate to lenders whether you are reliable and trustworthy.
• Missed or late payments stay on your credit report for at least three years, and bankruptcies, non-payment of debts and individual Voluntary Arrangements (IVAs) can stay on your credit report for at least 6 years.
• Your credit report shows all of your addresses for the past 6 years, and whether you are registered on the electoral roll to vote. Lenders will use this information to make sure you live where you say you do.
• Another section of your credit report lists the people you share a joint account with, which could include rental contracts, mortgages or credit cards. It is worth getting at least an annual credit report, in case any of these details have changed. The circumstances of your financial associates, in the eyes of a lender, could affect the repayment of credit.
• Information for your credit report comes from public records, including court judgements and the electoral roll. Data is also supplied by other lenders. Some lenders share information about all accounts, even those which are paid regularly and on time.
• Be aware that landlords and employers can also see parts of your credit report, so a bad credit report could even affect your job prospects or the chance of renting a house.
• Lenders calculate a credit score by adding a value to information in your application form and credit report, then adding their own formula. For this reason, your credit score can change with each application, and if you are refused with one lender it doesn´t mean to say that another lender will come up with the same result.
• Before applying for a new credit account, check through your credit report, and if there is anything listed which needs to be bought to the attention of the lender, then contact him immediately. Also ensure all information is accurate and up to date, such as address, financial dependents etc.,
• Make sure you ask for a copy of your credit card at least once a year. Identity fraud is rife in the UK, and by regularly checking your credit report, you can make sure you don´t fall victim to it. Identity fraud includes the theft of your personal information and using it to take over your existing accounts or to set up new ones in your name. Keep track of your credit report, and if you see any suspicious entries, report them immediately.
• Only ask lenders for a quotation when you are shopping around for the best deal. The more your credit report is checked, the more likely lenders will assume you are desperate for money as a ´footprint´ will remain on your file for every application you make.
Check your Experian credit report online with a free trial of CreditExpert, the UK’s leading online credit monitoring and ID fraud protection service.
Labels: credit expert, information, lenders
How can I improve my credit rating?
posted by debts.org at 03:18
In days of recession and credit crunch, your credit rating or credit report is more important than ever. Read these handy tips to help you get the credit deals you want:1. Check your own credit report
Your credit report tells lenders all they want to know about your borrowing and repayments, but not everyone realises you can check your own credit report before applying for credit cards, loans or mortgages. Check your credit report regularly and free of charge with CreditExpert.
2. What are lenders looking for on my credit report?
Lenders know you are unlikely to have an unblemished record, but they want to make sure you are stable and reliable, and can afford to pay back any new loan, on time and regularly. A credit report showing missed repayments or bad debts means you could let them down too and they may not be prepared to take that risk. If there was a particular reason for missing payments such as a divorce or a death in the family, it may be worth noting these down on any application for credit.
3. Always close unused accounts to help your credit report
If you have unused accounts still open, then close them. Lenders could take into account the amount you could borrow, and not just what you currently owe. A few, well-managed accounts will look much better on paper than several unused accounts. If you are not sure whether you still have unused accounts, you can check on your credit report.
4. Debt consolidation could help your credit rating
Consider consolidating your debts. Work out which credit accounts are proving the most expensive and see if you can move them to one single loan. A 0% balance transfer for credit cards is also a good option, but make sure you read the small print. This could give you up to a 12 month interest free period, when you can reduce your credit card debt.
5. Should I register to vote to improve my credit report?
Yes. Lenders will use the electoral roll as a precaution against fraud, and to check that you are registered at your current address. If you are not registered on the electoral roll, you may be asked for further proof of address or identity, or even turned down altogether.
6. Don´t be pressured by lenders
When you are researching the best credit deals for you, make sure the lenders know you are only looking for information to start with, and don´t be pressured into signing something you don´t fully understand. Also, every application for credit triggers a search of your credit report, which will leave a record. If you make several credit applications, it could indicate on our credit report that you are desperate for cash, and be off-putting to lenders.
7. Protect your ID in your credit report
Watch out for any unfamiliar or suspicious entries on your credit report, which may not refer to you. Check carefully and make sure there is no record of a bank account you didn´t open, a massive rise in the amount you owe, or credit card applications you didn´t make. Identity fraud is becoming more common place and if it happens on your credit report, or your credit rating, contact the relevant lender as soon as possible, explain your position and provide proof, where possible that you are not responsible. Check your Experian credit report online with a free trial of CreditExpert, the UK’s leading online credit monitoring and ID fraud protection service.
Credit report and credit history
posted by debts.org at 03:11
The top ten myths about credit reports and credit reportingTo understand why you are refused credit, you should begin by understanding what impact your credit history has on the type of offer you get, or the reasons you don´t get any offer at all. Your credit history, reflected in your credit report, lists credit card debts, mortgage debts, rent arrears, bad debts, Individual Voluntary Arrangements (IVAs) and bankruptcy. Lenders use this information, with additional details you provide to decide whether to give you credit or now. Several factors can affect your credit rating, and it is worth considering the following:1. Can previous occupants at my address affect my credit report?
No. It makes no difference to your credit report if the previous occupants were in debt, as long as you don´t share any financial connections such as a joint account. Lender are only interested in your ability to repay them and someone else´s debt, even if they were living at your address will not be considered. Lenders will ask for your previous address so they can check if you ran up any debts while you were there, but your credit report will not be affected by previous tenants/owners of this address.
2. What does a credit reference agency do?
A credit reference agency compiles and holds your credit report securely, but they don´t make decisions about lending. Lenders will use the information in your free credit report, plus information you give on your application to calculate your credit rating.
3. Do past debts count?
Past debts do count, and Independent Voluntary Arrangements (IVAs), county court judgements (CCJs), and bankruptcy can stay on your credit report for a minimum of 6 years. One missed repayment can be recorded for at least three years, so make sure you always pay your monthly credit card debts. All of this could count against you as your credit record will show the missed payments, and a new lender may decide you are too much of a risk.
4. Can I get credit if I have never borrowed before?
Surprisingly, if you have never borrowed in the past, creditors may refuse you credit. As they have no record of payments to refer to, they have no way of predicting how reliable you are with repayments and no credit report to refer to. Most lenders prefer to see a credit report showing regular repayments of loans or credit cards than none at all.
5. Could I be on a credit blacklist?
Contrary to rumour, credit blacklists don´t exist. Your credit rating or your credit report does not take into account your race, ethnic origin, religion or gender, and the only factors lenders are interested in is your repayment history, and the amount you owe already. Annual credit reports show lenders how much you can comfortably borrow to avoid credit card debt, remortgage debt or personal loan debt in the future.
6. Does the number of people living in my house affect my credit rating?
Friends and family who may live in your house have no affect on your credit rating, unless their finances are linked with yours, by way of a joint mortgage or credit card account for example. If there is a joint financial connection however, lenders may look at both credit reports. In this case, their credit rating could affect your ability to make repayments, and ultimately result in you being refused credit.
7. If I repay my credit cards does my credit score improve?
Yes. If you are seen to be paying your credit card debts in full, your credit rating will improve. Your score will be lower if you miss payments or make late payments on credit cards.
8. Does it matter how many credit accounts I have?
It can do. Lenders will only be happy to lend you money if they think you can afford to pay it back. If you already owe large sums to multiple accounts, they may decide you are out of your depth already. Close down any unused accounts, and limit the number of new applications for credit you make.
9. Do I only have one credit score?
Each lender calculates credit scores in their own way, and some formulas differ for loans and cards. If you make four applications in a day for example for credit, you could receive four different credit scores. Missing credit card payments will likely result in a lower score, and paying off a debt could improve it.
10. Do items on my credit report stay on file forever?
Most lenders will check your credit report to see what your current or recent credit history is. They are not interested in debts you may have accumulated twenty years ago, and have since paid off. This has no relevance to your behaviour today, and most information is only kept on your credit report for three to six years.
Labels: applications, credit score
Credit card debt and the risks of holding credit cards
posted by debts.org at 03:03
• Without discipline and a fair amount of credit card management to avoid debt, credit cards can lead to serious debt problems• Be aware of penalty fees. You could be charged up to £15 for missing a monthly payment or for paying it late. Pay by direct debit to avoid extra credit card debt
• Making late payments can also damage your credit rating, so seek credit card debt management advice from a specialist debt solutions company if you are worried about this
• By only making the minimum payment each month you could end up paying thousands of pounds in interest, and the credit card debt could take you many years to clear
• If you have outstanding debt on multiple cards, consider credit card debt consolidation, which will make it easier to manage your debt and finances
• Cancel cards you no longer use, as they could affect your ability to apply for more credit in the future.
How do I apply for a credit card?
Before you apply for a credit card, go to a card comparison table, and look at all the information to find a credit card which will best suit your needs. Always aim to pay any credit card debt monthly to avoid having to seek a credit card debt reduction or credit card debt help in the future. Only make applications which are likely to be accepted as, every time you apply for credit, a ´footprint´ will appear on your credit rating file. Identify the cards you are most likely to be accepted for.
What if I end up with credit card debt and can´t meet my repayments?
If you struggle to meet your monthly repayments and/or your outstanding balance, contact your credit card issuer or contact a specialist debts solution company, such as debts.org who will contact your issuer for you and can possibly arrange an agreement between you and them. The earlier you approach your credit card issuer, the more sympathetic they will be to your predicament. Credit card debt is not the end of the world, and you should speak to a professional debt company who can help you to rearrange your finances and pay off your debts.
You could also switch your card to one with lower rates and consolidate your credit card debt. The sooner you contact other credit card companies with a view to switching your balance, the better. Your application will be looked at more favourably if you contact them as soon as you realise you are struggling to make your credit card repayments.
Labels: finances, specialist debts solution company
Credit card debt and poor credit history
posted by debts.org at 03:00
How can I get a credit card with my credit history?It is increasingly difficult to get a credit card if you have no previous credit history, poor credit history or you have changed addresses frequently or are self-employed. If you have defaulted on a loan or card repayments previously, or if you have county court judgements (CCJs), you may struggle to get credit. You may be able to get a credit card, but look long and hard at the terms and conditions attached to it. If you find a credit card provider who is willing to issue a card to you, you are unlikely to be offered competitive interest rates. However, once you have read the small print, if you accept the credit card, remember this will help to rebuild your credit rating.
Using my credit card abroad – how much does it cost?
Beware hidden credit card charges when using your credit card abroad. Hundreds of people have found themselves seeking credit card debt help after overspending on holiday, then being charged high amount of interest for the privilege. If you are already struggling to pay off credit card debt, it may even prove wiser to leave your card at home if you are planning a trip abroad.
Credit cards abroad? Safe or scary?
Often considered the safest and most convenient way to pay on holiday, credit cards can prove costly. Many providers levy overseas usage fees, which can massively increase the cost of a transaction on foreign soil. Credit card exchange rates are based on Visa and Mastercard wholesale rates, with an extra loading percentage added by the card issuers. This rate can vary from 0% to 3% depending on the credit card, and the rate can vary depending where you are in the world. Rates can be significantly higher outside Europe.
If you apply for a specific credit card for use abroad, also look at the other facilities it offers, such as provision of a replacement card in the event of loss or theft. Additional benefits may also include an international assistance package or insurance for flight cancellations, lost luggage and personal injury. Hundreds of people each year experience problems on holiday abroad, and are completely unaware they can claim from their credit card providers.
Credit card debt settlement and prepaid cards
Attempt to settle any credit card debt as soon as possible. Interest accumulates on cards when balances are not paid off quickly. If you are a regular traveller, consider a prepaid card. This card is quite new to the market, and more providers are now offering them as an alternative to the standard credit card. Although they can be used like a normal credit or debit card, you have to load money onto them before you can use them. If you are liable to overspend, and leave yourself with credit card debts after a holiday, this could be the best option for you. Prepaid credit cards don´t offer a credit facility and only allow you to spend the amount of money which has been loaded onto them.
Labels: market, prepaid cards, traveller
How can I clear my existing credit card debt?
posted by debts.org at 02:55
Paying off existing credit card debts is much harder than running them up. Unless you are disciplined, paying off even relatively small credit card debts can take years.Stop spending on your credit cards to avoid serious debt
Firstly, and most importantly, stop spending on your credit cards. If you accumulate more debt, you may have to contact a credit card debt relief company or your credit card provider to seek help with your credit card debts.
Also, make sure you pay off more than the minimum each month. Minimum payment can be very low, which may seem to help you initially if you have debt problems, but will result in you paying off your credit card loan for years. Work out the maximum you can afford to pay each month and stick to it, or set up a direct debit so you pay your credit card debt comfortably each month.
Credit card balance transfer offersYou can now find balance transfer offers that last at least 12 months. Do all you can to clear your credit card debt within that time. If that´s not possible, make a note of when the 0% deal ends, then transfer your credit card debt to another company to avoid interest charges. If you prefer to stay with the same credit card provider, and not have the hassle of changing companies every 12 months, then avoid credit card debt by applying for a card with a low lifetime balance interest rate. Don´t spend on your new card, until your previous credit card debt is cleared. Otherwise you will be paying more interest on your purchases, which will be charged at the normal rate.
Labels: credit card debts
Avoid having to ask for credit card debt
posted by debts.org at 02:50
Always read the small printAsk yourself why you need a credit card, and always read the small print to avoid credit card debt problems in the future. You could be caught out by hidden fees and charges if you are not careful when applying for a credit card. You may want to use your card for purchase, switching an outstanding credit card debt from another card or even withdrawing money from a cash machine. Avoid the latter at all costs.
Different rates of credit card interest cause credit card debts
Credit card providers charge a different rate of interest for each card, and arrange your credit card debts to make sure the cheapest debt is paid first, leaving your interest rates to soar on the highest debt. If for example, you took out a new credit card and transferred a credit card balance onto it, then made a purchase and a cash withdrawal, you could be charged three different interest rates for each transaction.
Credit card comparison can eliminate credit card debt
It is now easier than ever to compare credit card rates and services. Credit card providers are now obliged to summarise their key product features, including interest charges and fees, instead of hiding them in the small print. This information should appear in all credit card marketing material.
Reduce the risk of credit card debt
Hundreds of credit card deals are available in the UK and the credit card business is a competitive one. Consider the following to work out your spending and repayment habits:
• Are you a regular spender who always clears their balance each month?If you use your credit card regularly, but are anxious to avoid credit card debt, you probably clear the credit card balance every month in full, which means you will pay no interest. Most credit cards offer an initial interest free period, which gives you some breathing space before the credit card statement hits the mat. But don´t be fooled into thinking every credit card provider offers a grace period. This is not always the case so you need to be clear about payment schedules and interest rates before you spend. If you always pay off the full amount on your credit card each month, interest rates should not affect you, but look for a deal which will offer loyalty points or cash back. If you intend paying the full amount back every month, set up a direct debit with your bank.
• Are you a regular spender whose credit card balance is sometimes cleared each month?If you use credit cards regularly and usually pay off the balance each month, but sometimes carry the balance forward, look for a credit card which offers a low standard rate of interest.
• Are you a regular spender whose credit card balance is never cleared in full each month?If you are a regular spender who struggles each month to pay off their credit card bill in full, or simply chooses not to, you should apply for a card with an introductory offer or a low standard rate of interest. A number of credit card deals now have interest free introductory offers, but make sure you understand what the rates will rise to after the initial offer period. This can work out well for those who don´t clear their balance every month, but make sure you are able to pay off your debt by the time the offer period ends, or you could end up asking for credit card debt help.
If the debt has not been paid by this time, look to switch it to another provider who is offering a 0% balance transfer deal. Some credit card providers offer a low introductory rate for purchases plus a 0% balance transfer rate. Avoid credit card debt by asking questions and never sign any credit card deal unless you are 100% happy with the terms and conditions.
Labels: providers, spender, trnsfer rate
A simple guide to credit cards
posted by debts.org at 02:45
How to avoid credit card debtWhen credit cards are used responsibly they can provide a convenient way paying for goods and services. However the temptation is to overspend, which has left millions of people in the UK suffering from credit card debt. If you want to apply for a credit card, always remember:
Avoid credit card debt by choosing the right card for you
To avoid asking for credit card help in the future, make sure your card is best suited for your needs. Many people use credit cards which are not suited to their spending patterns, which results in them being unable to meet their credit card repayments. They can then end up paying more than they need to in credit card interest rates, and face credit card consolidation to solve their credit card debt.
It is important to identify the best credit card to suit your needs, which could reduce the credit card interest payments and increase loyalty benefits. As the credit crunch hits, credit card providers are competing harder for your business, so take your time to find the right deal for you. Consider all options thoroughly at the outset to avoid credit card debts in the future.
Benefits of using a credit card and avoiding credit card debt
You can benefit from using a credit card responsibly, and some of the advantages are:
• Free short term credit as long as you always pay your credit card balance in full by the date shown on your statement.
• Credit cards are a safe and convenient way to pay for goods and services in the UK if you are purchasing plane tickets/online shopping over the internet, but don´t be tempted to overspend which can result in credit card debt, and you having to apply for credit card debt help.
• Credit card issuers and retailers, under the Consumer Credit Act, take joint responsibility for faulty purchases. In other words, if you purchase something with a credit card, which is priced between £100 and £30,000, which is faulty, or which you never receive, you can claim a refund from the credit card provider. Credit card cheques are not covered as they can be made payable to anyone, and the credit card provider would not share any liability if the card was used to withdraw cash for the purchase
.• Fraud protection is at the forefront of most people´s minds nowadays. If you are a victim of credit card fraud, and an unauthorised person uses your card after theft, you must contact your credit card company as soon as possible. You will not be expected to pay if a criminal uses your card but avoid having to ask for credit card debt help, by contacting your credit card provider as quickly as you can.
• Most credit card providers offer incentives such as loyalty points and cash back. Some providers also make payments to support a charity, and you should ask when you apply how this will affect you personally. Incentives from credit card providers which seem too good to be true often are, so avoid credit card debt by asking as many questions as you need to.
• Credit cards are a global currency, and are accepted in nearly every country in the world. If you are already looking to reduce your credit card debt, and are seeking credit card relief, be careful before you use your credit card abroad. Ask how charges will be applied, and make sure you understand exactly how you will pay your credit card debt on your return to the UK, and how much you owe.
Labels: currency, fraud protection, payments, refund
Ten steps to help with credit card debts
posted by debts.org at 02:30
Government plans to offer better deals to the consumers, include banning credit card companies from extending a customer´s credit limit unless they ask for it. Millions of people a year fall foul of the credit card companies, and credit card debt is spiralling.Credit card providers will also be restricted on when they can increase interest rates, and the government will consult on whether minimum repayments should be increased to make sure cards are paid off earlier. Credit card debt consolidation terms are also being looked at.
If you are struggling to pay credit card debt, read the following useful tips:
1. Pay off the credit card debt in fullWherever possible, pay off the credit card debt in full each month to avoid paying any interest.
2. Set up a direct debit repayment for your credit cardYou will be fined if you miss a credit card payment, so to avoid asking for credit card debt help, set up a monthly direct debit payment from your bank. Even if this sum just pays the minimum, you can always pay back extra over the phone towards your credit card debt when you in a position to do so.
3. Pay back more of your credit card debt than the minimumIf you only stick to paying off the minimum each month, you could have credit card debts round your neck for many years, and you could pay thousands of pounds in interest. Even if you can only afford to pay little more than the minimum for your credit card debt, do so.
4. Pay back expensive credit card debt firstYou may have considered credit card debt consolidation, but if this would not work for you, and you are using multiple credit cards, pay the most expensive one back first, with the highest rate of interest. If that means only paying the minimum on other cards for the time being, you will still gain by paying off the most expensive credit card debt first.
5. Don´t exceed your credit limit or face credit card debtYou will face credit card debt if you exceed your credit limit on any card. A credit card limit is a spending cap than should never be exceeded. If you go over this limit you will be fined from the credit card company and also have your card blocked.
6. Fix your credit rating before you apply for a cardIf your application for a credit card is rejected, this can harm your credit rating, which will affect you when applying for other types of credit such as bank loans and mortgage applications. You should obtain a copy of your credit profile and try to improve your rating before you apply. You can do this by registering on the electoral roll and cancelling cards that are no longer used. You can get credit card debt help and arrange credit card debt consolidation from a number of debt help companies, who will contact your credit card provider if you feel unable to do so.
7. Check out the 0% balance transfer on credit cardsYou are likely to be charged a balance transfer fee for moving your credit card debt to a 0% balance transfer card, you may still be better off by switching. Weigh up all the pros and cons, and consider a credit card debt consolidation agreement. If you decide to switch to a 0% balance transfer, you will be able to reduce the amount of credit card debt you owe by paying no additional interest for the length of the deal. Consider, at the end of the 0% period, switching to another 0% deal that will give you extra breathing space to reduce your credit card debt. Interest free deals will only be offered to people with excellent credit ratings.
8. Multiple credit cards equals multiple credit card debts
The worst thing you can do is switch to a 0% balance and carry on spending. When the 0% deal ends you will be charged interest on any spending you have made, as most credit card providers use your monthly payment to clear the cheapest debt first. In other words, you won´t be able to start paying off the new amount you have spent on purchases until your transferred balance has been cleared. Don´t be tempted to apply for more credit cards, as credit card debt help becomes harder to find, the more money you owe. If you are trying to eliminate credit card debt, stick to a plan of action, and stop spending!
9. Beware spending on credit cards overseasIf you are struggling to pay off credit card debt, beware spending on credit cards overseas. Credit card charges including foreign loading fees can add to your credit card debt if you use your card on holiday. Check out the fees with your local credit card provider before using your card abroad.
10. Never use a credit card to withdraw cashIf you are worried about credit card debt, or considering credit card debt consolidation and seeking credit card debt help, NEVER withdraw cash on your credit card. The charges are astronomical, and you could be hit with an interest rate of 25% on the withdrawal, plus have to pay a fee and accrue additional interest from the day the withdrawal is made. If you seriously want credit card debt help, seek the advice of a professional debt specialist company such as debts.org, and don´t make your credit card debt
Labels: charges, debt consolidation, interest free, spending
Clear your debt problems in 10 easy steps
posted by debts.org at 05:43
Clear your debt problems in 10 easy stepsWith the economic situation showing little sign of recovery, you may be regularly checking a mortgage calculator to see how you could reduce your main outgoings. You may have been using a payment calculator, a loan calculator or an interest calculator to try and work out how to stay afloat, but the most important thing is to face your debts head on and don´t bury your head in the sand.
Financial calculators and credit card calculators are fine if you intend to re-structure your budget, but some simple rules will help you get out of debt easier than you thought:
1. Budget to avoid debt problems
Before you can even think about reducing the amount of money you owe, and before you start furiously tapping into a credit card calculator or a mortgage calculator, you need to sit down and record all of your incomings and outgoings monthly. The shock of how much you actually owe can work in a positive way, and put a halt to your spending. Include the cost of your mortgage or rent, loan and credit card repayments, regular bills and outgoings including house insurance and pensions. Add to this the cost of your general spending such as grocery shopping, and add this figure up with the help of a payment calculator. This will show you the amount you spend every month.
Then add together your monthly income, including average overtime, or benefits, tax credits etc., If your debt repayments take up more than a fifth of your monthly income, according to The Consumer Credit Counselling Service warns that you could be suffering financial hardship and need help with debts.Debt priority and a mortgage calculatorPrioritise your debts, and put mortgage or rent arrears at the top of the list, along with council tax payments. After all, if you don´t pay your mortgage you could lose your home and if you don´t pay council tax you could even be imprisoned. Use a mortgage calculator or loan calculator to help you work out your debts and interest.
Speak to your creditors as soon as possible. They are far more likely to agree a suitable repayment package for you, which helps you both, if you contact them as soon as possible. You should make more than one minimum repayment on credit cards, as interest mounts quickly. Take steps to reduce your outgoings and cut back on luxuries and outings. If you are regularly defaulting on mortgage/rent, it may be a good time to discuss with a debt specialist company the possibility of an Individual Voluntary Arrangement (IVA).
2. Wake up to your debt problems
If you face your debts head-on, there are several ways of cutting your outgoings. First address your mortgage or loan, then tackle unsecured loans such as credit card and store card debts. You can also check out thousands of loan and mortgage options with the help of a comparison site and a mortgage or loan calculator to see what is the best deal for you. You may want to remortgage to reduce your outgoings, but always check the small print on your current loan to make sure they will not charge you an excessive amount to remortgage with another company.
Credit card debt help
If you have been hammering the plastic over Christmas or splashing out on expensive gifts or holidays, try to find a reputable credit card company who will offer you 0% interest to transfer your balance to them. But beware, 0% interest sounds tempting, but make sure they will not charge you a fee for moving over to them, and ask when the deal ends. You could end up worse off so read the small print and don´t be afraid to ask questions. A credit card calculator or a loan calculator may help you to make a decision. Also be very careful if you are considering consolidating your loans. This may look tempting, but you could end up paying back a very high amount of interest. Again, read the small print and ask questions. If you are massively in debt with your credit cards, destroy them.
3. Store card debt help
If you have any store cards, get rid of them. Cut them up and throw them away. The longer they are in front of you, the more likely you are to increase your debt and go on a shopping spree. If you are unable to clear your balance every month, the interest on most store cards is astronomical. Some stores charge over 30% per year interest on the amount you spend.
4. Reduce your household bills to help with debt
Don´t wait for your supplier to offer you reduced rates for utility bills. Take the bull by the horns and contact them first. You can also cut the amount of energy you waste and arrange for Tiscali´s Energy Saving Trust section to carry out a home energy check to help you reduce your bills. Speak to several different gas and electricity suppliers and you can reduce your monthly bills by a significant amount. A payment calculator or a finance calculator will help you work out the amounts you pay each month on gas and electricity.
5. Pay less for your water to help debt problems
Thousands of people are paying more for water than they need to. Contact your water supplier to have a free water meter installed. This can save you a lot of money over 12 months.
6. Organise your debt management
Once you have worked your way through your finances with the help of a mortgage calculator, a finance calculator or a payments calculator, you need to take steps to steady the ship, and get a grip. It´s a good idea to open a separate bank account just for paying bills. If you set up standing orders and direct debit payments, you will have a lot less hassle when paying the bills. You could even set up a third account for savings, and bank online if it makes things easier to keep on top of.
7. Spend less and reduce debts
You can reduce your outgoings without a great deal of effort. Use a loan calculator or mortgage calculator so work out what you need to pay and when. Then keep a diary of what you spend each day, and you will see quite clearly how that can be reduced – particularly during working days. You can even reduce outgoings a lot by taking a packed lunch to work, and shop at the market. If you want to buy particular goods, use an online shopping comparison website to find the cheapest deals. When your car insurance or home insurance is up for renewal, don´t just automatically renew it. Look around for the cheapest deals or ask your insurer if he can reduce the rate. They won´t want you to go elsewhere, and will often reduce insurance rates significantly.
Only buy good for cash and forget the credit cards.
8. Avoid telephone debts with cheaper options
British Telecom (BT) do not have a monopoly on phone calls in the UK. There are now hundreds of landline telephone packages to choose from, plus satellite and broadband providers. The mobile phone market is also highly competitive and you are now in a stronger position than ever to re-negotiate your existing tariff with your provider or with a new provider with better rates. If you are not happy with the service your mobile phone provider is offering, then change. You can now keep the same number with a new company. Use a switching calculator online or a payment calculator to work out how you could be better off and avoid debt problems.
9. Get expert help with your debts from a specialist company
Even by sharing your debt problems with someone else will be a relief. Don´t feel embarrassed or awkward to speak to an adviser at a specialist debt solution company such as debts.org, as they are trained to deal with your debts confidentially and sympathetically. By making one phone call, you have taken the first step towards a debt-free future. You can contact www. debts.org for free advice and information or The Citizen´s Advice Bureau or The Consumer Credit Counselling Service or National Debtline
10. Debt help and debt management goals
Set yourself some realistic goals to help with your debt. Work out a realistic debt management plan or contact debts.org for help in arranging this. We will talk to your creditors and offer you a debt management plan to suit your needs and to get you debt free within just 3-5 years. Write down what you hope to achieve in the next 12 months in terms of becoming debt-free, and how you hope to achieve this. Be realistic and even if you can only pay back a small amount, you will have made great progress, which is an incentive in itself. Once a debt begins to reduce instead of increase (as is the case with many credit card debts) you will be spurred on to continue with the payments. Keep things in perspective and contact a specialist debt management company who will give you free advice and help you , arrange a proper debt management plan (DMP)or individual voluntary arrangement (IVA).
If you are worried about house repossession, remember there are always ways around this, but you need to contact a debt solution company as soon as possible for debt help. Be honest, be straight and you can find debt help to suit your requirements. Check out the internet for a mortgage calculator, a loan calculator, a payment calculator or a rate calculator if you want to do the initial sums yourself.
Labels: calculators, cost, loans, outgoings, shopping
The facts about UK debt
posted by debts.org at 05:31
Millions of people face debt problemsThe number of people in debt in the UK is set to reach an all-time high by the end of 2009. But what actually does ´in debt´ mean? If you include the millions of people who owe money on mortgages, small credit card debts, bank loans and private loans, it is little wonder that debt in Britain is now reported to stand at a staggering £1.39 trillion.
Credit crunch and recession are all words we bandy around, without really thinking about the millions of people who could end up on the breadline if their finances don´t improve. If you refuse to acknowledge just how much debt you are racking up on those credit cards, or how much rent arrears you owe, you are one of millions who choose to bury their heads in the sand and refuse to face their financial problems head on. Debtors, although there are more of them, are actually in a much better position now than they were, say, ten years ago, with an increase in debt help agencies and specialist debt solution companies.Contact a debt management company
Debt management companies, debt specialist companies and debt solution companies in the UK can help you with debt management plans, (DMP) individual voluntary arrangements (IVAs) and even bankruptcy, with one quick phone call. If you choose a reputable company such a debts.org, you will be guided through the process of a DMP for example, and they can arrange a much cheaper monthly payment than you are looking at now. Debts.org offers free advice and friendly staff. They understand that the vast majority of people in debt feel embarrassed or awkward, and we will give you free, friendly advice in a clear and transparent way.Government package to help avoid debt problems
Gordon Brown has unveiled a £910m package to help people with rising gas and electricity bills. Average household energy bills now total more than £1,000 a year, and thousands of families are worried about paying their fuel bills in. This guide outlines what help is available.
As well as the general help listed in the guide, suppliers also offer grants, special tariffs and other measures based on individual assessment. If you are having trouble paying your bill you should check with your supplier to find out what help is available from them.
UK debt problems
The facts
If you have debt problems in the UK, looking for debt advice, or having problems with credit card debt, remember you are not alone. Debt facts in the UK include:
1. The total figure of personal debt in the UK is over £1.39 trillion, and is set to rise.
2. Interest paid on loans, credit cards, mortgages and overdrafts each year amounts to £93 billion.
3. Almost 25% of the population think their debt is unmanageable, and they need debt help.
4. The average household owes £56,234 including mortgages and is paying over £3,700 in interest every year.
5. Over 10,000 people are predicted to go insolvent each month in 2009, and thousands will have their homes repossessed.
6. The average person in their 20´s has debts of more than £6,000 with an additional overdraft of £1,500, and more are seeking the help of debt specialist companies each year.
7. Brits borrow more than twice as much as our European neighbours on unsecured loans.
8. Nearly 12 million homeowners have mortgages, and the average outstanding mortgage figure is just under £100,000.
9. Over 60% of people in their 20´s are not paying into a pension, with nearly 40% of them saying it´s because they can´t afford to. Debts.org will give you sound advice about debt management, independent voluntary arrangements, bankruptcy and credit card debts. If you are worried about getting into serious debt, and you already owe small amounts to your creditors, contact us before your debt problems get any worse. We could arrange a debt management plan that would see you paying less than 50% to your creditors than you are paying now, and you could be completely debt free within three years.
10. Britain´s personal debt is increasing by over £1 million every 5 minutes.
Help yourself to get out of debt by contacting a reputable debt management specialist in the UK. The friendly, trained staff at debts.org will speak to you confidentially and will give you free advice, and even make arrangements for you to get out of debt as soon as possible. A debt management plan or an independent voluntary arrangement may be the answer to give you peace of mind and a stress-free future. Debt problems can become all-consuming if you don´t nip them in the bud at the beginning. As soon as bills start to go unpaid, seek the help of a specialist professional debt management company who will help you to put your house back in order. Debt management not debt stigma Many years ago, a certain stigma used to be attached to being in debt. This is no longer the case with millions of families struggling with debts including mortgages, credit cards, rent arrears and personal loans. The best way to avoid debt problems is to spend sensibly in the first place.
By following simple rules, and by arranging your own budget plan or, if you are in arrears, contact debts.org for a debt management plan, you can ease the burden of high monthly payments to your creditors, and start to enjoy life again. Whether you arrange a debt management plan or an individual voluntary agreement or even bankruptcy through debts.org, you will be treated in a professional and friendly manner, and everything will be explained to you in full, so that you don´t go away confused or unsure of the service we offer.
By facing your debts, and arranging a debt management plan for yourself, you ease the burden of financial problems and further debt. Help us to help you, and you could be making smaller monthly payments to suit you and your creditors, plus be debt-free within 3 years.
Labels: energy bills, fuel bills, specialist companies
Debt prevention is better than debt cure
posted by debts.org at 05:21
Think before you spendIf you keep well within a budget for most of the year then blow thousands of pounds at Christmas that you can ill-afford, you could find yourself paying for it for the rest of the year. Many people even go into debt in order to enjoy an annual holiday, a trip or luxury item, such as a new car. In order to stop you getting further into debt, sort out your finances as soon as possible, before a relatively small debt becomes a big one. If you have overspent, consider the following:
• A debt action plan
Work out how much you owe, and prioritise your bills. In other words, budget for mortgage or rent, gas, electricity and council tax first. Also prioritise your credit card bills and make sure you know which cards need to be paid straight away and which ones can wait.
• Compare Annual Percentage Rates (APRs)
Compare all of the interest rates on your credit cards, and look which rates are the cheapest. You could make huge savings by transferring credit card balances on to one card, but make sure there are no hidden extras if you are tempted to put all your debt with one company.
• Don´t delay debt payments
Debts should be paid off as quickly as possible. If for example you have overspent at Christmas, then pay off the credit card bill as early into the new year as possible. Don´t be tempted to delay payment and spread it over 6-12 months if you don´t need to – you will only end up paying more in the long run.
• Don´t overdraw at the bank
Do your utmost not to overdraw at the bank. If you feel you have no other option than to overdraw, then warn the bank in advance. Otherwise you will be penalised quite heavily, and interest payments can be up to £5 per day, plus an initial fee of up to £30.00.
• Take advice about consolidation loans
If you are considering a consolidation loan, remember that your home may be at risk if you do not keep up the payments. Some of the loans you are trying to consolidate may be unsecured loans, which means they are not secured against your home, car etc., Take advice from debts.org before agreeing to any such consolidation arrangement. We may be able to recommend a debt management plan or an Independent Voluntary Arrangement (IVA) to help you out of debt.
• Organise a clear and realistic budget to solve debt problems
Work out a realistic budget to get you through every month, having paid your most important creditors. Don´t add to your debt woes by spending more on credit cards or store cards.
• Beware store cards
Store cards can look tempting but can prove lethal if you are prone to overspending. Offers such as ´buy now pay later´ and £30.00 off your first purchase if you sign up today, are specially designed to get you to sign up without thinking it through, and without reading the small print. Some store cards charge up to 30% interest, which is nearly three times the rate you would be paying with most credit card companies.
• Be honest with your lenders and with yourself
Don´t ignore your debts. If you throw unopened bills away, or stick your head in the sand you only have yourself to blame when the full extent of your debt becomes apparent. Face up to it and contact your lenders as soon as possible. Alternatively contact debts.org who will give you free friendly advice about debt management plans, independent voluntary arrangements and even bankruptcy. We can arrange the best debt solution plans for you and your creditors. Debts.org will help you become debt free while still having money to spend.
• Cut your budget to avoid debt problems
Look at cheaper options for utility services. Compare prices with different gas, electricity and phone companies and you could save hundreds of pounds a year.
• Don´t be afraid to ask for help
If you feel your debts are spiralling out of control, or even if you are worried about the future, seek advice from a reputable debt specialist company, who will contact your lenders for you. Either contact debts.org who will give you free help and advice, and arrange a debt management plan for you, or contact The Citizen´s Advice Bureau or the Consumer Credit Counselling Service.
Labels: council tax, small debt
Face up to your debt problems and seek free professional advice
posted by debts.org at 05:12
Instead of burying your head in the sand, there are now more specialist debt solution companies than ever in the UK, giving free advice, to help you get out of debt.You may be able to help yourself by reading the following top ten debt solution tips:Face up to your debt problems
Make contact with your lender as soon as possible, and preferably before you miss your first payment. Explain your situation to them and don´t be afraid to make them an offer of payment if you can´t afford the full amount. You may be able to arrange an acceptable payment plan or even freeze your repayments until you are in a better position financially. Lenders and courts will always be more sympathetic if you acknowledge creditor´ letters, obey court summons and show that you are willing to pay what you can afford.
Always prioritise your debts
Firstly, tackle debts that threaten your home, or could even result in you being imprisoned, including rent, mortgage, electricity/gas and council tax arrears. You may be able to help your debt problems by arranging a debt management plan with a specialist debt solutions company, such as debts.org, who will give you free advice.
Make a list of debts and draw up a budget
Even if it does make scary reading, make a list of your outgoings and income every month, using an online budget calculator, and review your spending. A specialist debt management company in the UK can help with debt relief and debt management plans to suit your needs. Cut back on expenditure wherever possible. You could, for example, use comparison websites to find cheaper utility options for gas and electricity.
Plastic debt solutions
Always pay more than the minimum repayment required on your credit card debt. Even if you only pay a few pounds extra a week, your credit card debt can be paid off a lot quicker as interest does not accumulate.Free independent debt advice from debt management specialists
To arrange a debt management plan or an independent voluntary arrangement, you can contact debts.org who will give you free advice and guidance. You can also contact The Consumer Credit Counselling Service (CCCS), or Credit Action, which offers guides and resources.
Never borrow more money to pay off other debts
Borrowing more money to pay off existing debts is likely to burden you even more, unless it is part of a structured debt help plan.
Beware of debt consolidation
If you are looking to consolidate your debts, be aware that consolidation loans are secured on your home. Many of the debts you are trying to pay off are not secured debts. In many cases debt consolidation loans can work out more expensive than if you negotiate with your creditors directly.
Choose the right debt management company
Since the credit crunch began to take its toll, debt management companies have sprung up all over the place. It is important you choose a debt management company that will give free advice, and one that is right for you. At debts.org we understand that everyone´s debt problems are different, and we our trained staff will do their utmost to find you the best debt management plan (DMP) or individual voluntary arrangement (IVA) to suit your individual needs.
Bankruptcy and IVA debt solutions
If your debts seem to be running out of control, you may be advised to take an individual voluntary arrangement (IVA) or even to declare bankruptcy. There is no easy way out of debt, but a structured plan of action will take the weight off your mind and also give you breathing space with your creditors. An IVA is a formal agreement to repay a percentage of the debt for up to 5 years. By taking advantage of an IVA, you will not have to pay the full amount back and you will be debt-free in 5 years.
Share your debt problems
You may know friends or members of the family who have also suffered financial hardship and debt problems. Share your problems with them, and you are more likely to find out the best people to contact and the best ways to save money on the bills.
It is difficult for a lot of people to admit they are in debt, and they feel uncomfortable talking about it. Our friendly, trained staff at debts.org are used to talking to people who feel embarrassed or awkward about the extent of their debts, and we always offer a sympathetic ear and free advice. We will try to help you arrange your debts into affordable monthly payments, giving you peace of mind and plenty of breathing space to re-organise your finances.
Labels: Debt Management Plan
what is equity release and how can it help you ?
posted by debts.org at 04:58
Equity release is a way of using your property to release extra cash, and is becoming increasingly popular with older homeowners. You can release cash from your home to help with living expenses, for buying a new car or for home improvements. By releasing equity from your home, you can have a more comfortable living without having to move house or downsize, benefitting from the increased value your house has built up over the years.Types of equity release
Two types of equity release include lifetime mortgages and home reversion schemes, which are only available to older homeowners. Some schemes have a minimum age limit of 50 and some are only available to homeowners age 70 and over. Lifetime loans are a type of home loan on up to 50% of your property´s value, so you must pay interest on how much you borrow. The younger you are the higher the interest rates.
However, the repayments can be rolled up, which means they are paid in full when the property is sold or when the borrower dies or goes into long-term care. Reversion schemes for homeowners above the age of 65, involve selling all or part of your home to an equity release company, and living in the property rent-free until you die. After your death, the equity company will sell the property, and gain from any growth it has realised since the arrangement was first made. Your home must be in a good condition for you to be accepted by an equity release company.
Equity release is not the only option
There are disadvantages to equity release schemes, and your state benefit could be affected if you have the means to pay for dentist and optician fees, for example. The interest rate on lifetime mortgages is normally higher than on standard home loans, so that could be a better option. You could also use existing savings or move to a smaller home. If you think you are getting into debt, or you simply want to find the best way to release some cash, you should contact a specialist debt company who can advise you about other options. Debt problems are unfortunately common in the UK today, and there are many different ways to get yourself on a more sound financial footing.
Don´t be afraid to take advice about equity release or debt management
Releasing equity means that eventually your children will lose some of any inheritance you may want to leave them, and you should discuss equity release with them before making any decisions. A specialist adviser will also be able to help and advise you about equity release, and the Financial Services Authority recommends speaking to an expert before agreeing to any deal.
A lump sum or a draw down with a lifetime mortgage?
If you are planning to take out a lifetime mortgage, you can choose between accepting a lump sum, where the money comes to you in one go, or to draw the cash in monthly instalments. Income drawdown is not the best option if you are very old or if you are suffering from ill health, as you will lose out if anything happens to you.
Avoid risks with equity release
Equity release plans are now regulated by the Financial Services Authority, which means you could have access to funds from the Financial Services Compensation Scheme if things go wrong. Safe Home Income Plans (SHIP), is a self-regulatory body especially set up for the equity release industry, and has a list of members. SHIP members offers borrowers guarantees about living in their homes for life and allows them to move into a new property without penalty. SHIP also ensures there will be no negative equity attached to the property, so that homeowners never owe more than the value of their home.
How does equity release affect inheritance tax?
Equity release is often used to reduce the value of your estate after death. This means your children will not have to pay as much inheritance tax, which is currently 40% of your assets above £300,000. Once equity has been released, it can still be passed on to your children in the form of gifts to avoid inheritance tax in the future.
Some homeowners see equity release as a way of getting out of debt. Explore all the options before entering into an equity release deal. You should seek the help and advice of an expert, or speak to a professional debt counsellor at a debt specialist company such as debts.org who can arrange for you to look at different options to help your financial position
Labels: financial services authority, inheritance tax
Mortgages Explained
posted by debts.org at 04:49
A simple guide to mortgagesApplying for a mortgage used to be simple. After an interview with the manager of the building society, and a few simple questions, you would find out pretty quickly if the mortgage had been granted and on what terms. Nowadays there are plenty more options, and you can trawl price comparison sites on the internet, plus a host of high street banks and building societies to find the right deal.If you choose wisely, you can save yourself hundreds of pounds a month, but if you get it wrong, you could end up paying thousands of pounds over the odds. If you have been unfortunate enough to choose the wrong deal, you may be able to change it, but if you are already in arrears, contact a debts specialist company who can help you to make new arrangements, such as a debt management plan or an individual voluntary arrangement.
Mortgage information basics
A mortgage is a secured loan against your property, which means the lender can repossess your home if you don´t keep up with monthly payments. Lenders will normally offer you an initial deal, which will include a competitive interest rate over a set amount of time, such as 6 months to a year. Once the initial period comes to an end, you will pay the standard variable rate, which is normally much higher than your first deal.You can try to change your mortgage deal before the initial deal period is up, and avoid paying extra interest charges, but check the terms and conditions in the mortgage deal, as some bank and building societies are loathe to do this. Many homeowners find themselves in debt after taking a mortgage with an enticing opening deal rate, only to find after a set amount of time, when the deal ends, the repayments are unmanageable. If you have any questions or queries, or if you want advice from a debts counsellor you should contact debts.org, who may be able to help you with a debt management plan or an Individual Voluntary Arrangement.The Bank of England base rate gives an indication of the cost of borrowing, as most mortgage rates tend to go up and down in a similar fashion.
Fixed mortgage rates to avoid debt problems
Fixed mortgage rates stay at a certain level for the entirety of the mortgage deal. Commonly offered as 2,3,5,7 and 10 year rates, some lenders will fix a rate for up to 25 years. Usually, the longer the fixed rate is applicable, the higher that rate will be.
Advantages of fixed rate mortgages
With a fixed rate mortgage you will know what your monthly repayments are, which gives you security and the ability to budget. Obviously if interest rates do fall, you will miss out on the opportunity to make additional savings on your monthly repayments. If you are struggling with any type of debt problems including mortgage repayments, credit card debts, car loan debts or even repossession, debts.org can help. Tracker mortgage rates and debt management plans
Tracker mortgages track the Bank of England base rate, and set their rate a certain numbers above or below this. Repayments come down if the base rate goes down and up if the base rate rises. But if you are considering a tracker mortgage, be cautious. Some lenders freeze tracker rates when the base rate falls below a certain level. When experts expect the base rate to come down in the near future, tracker rates should carry a slightly higher premium to cover any risk to the lender. You may be thinking of remortgaging to relieve your debt problems. Before you remortgage, contact debts.org , a debt specialist company which may be able to find you a more suitable debt solution which will work out cheaper and more viable. Debt management plans and Individual Voluntary Arrangements are two options which may be available to you.
Variable mortgage rates and how they work
Variable mortgage rates can go up or down at different times. In addition to the standard variable rate, you can get discounted variable rate deals which usually offer big discounts at the beginning, but can creep up when interest rates rise. Make sure you understand any mortgage deal before you sign on the dotted line, and always read the small print.
Offset mortgages for savers
Offset mortgages work well if you have a lot of savings. Offset mortgages reduce the amount of interest you owe on borrowed money, by offsetting them against your savings balance. If you have a mortgage of £50,000 for example and savings of £10,000 you would only be charged interest on £40,000. Offset mortgage rate interest is usually higher than on standard mortgage deals, and is only worth considering if you have savings of at least 10% of your mortgage. Current account mortgages work along the same lines, but you have to accept that, until the mortgage is paid off, you will always see a minus amount on your balance, which is off-putting to a lot of people. If you are planning to remortgage because of debt problems, seek the advice of a professional debt specialist company before going any further. There may be an easier way to reduce your debts, without having to remortgage.
Guide to mortgage fees
Once you take out a mortgage, it is more complicated than simply paying back interest on a loan. Other costs may include arrangement fees for setting up the mortgage, valuation fees to cover the cost of valuing or revaluing the property and legal fees owed to the solicitor who has worked on your behalf. Also if you complete on the loan/mortgage before the arranged time period is up, you may have to pay early redemption fees. Check with your bank before taking a mortgage or remortgage deal, exactly what the additional costs are.
Mortgage overpayments and how this can work for me
Most mortgage deals allow you to over-pay by up to 10% of the balance every year, but if you intend paying off more than that, opt for a more flexible deal at the outset. Some mortgage and remortgage deals are more flexible than others, and are suited to self-employed homeowners whose income may fluctuate.
What is a ´drop-lock´ mortgage
A ´drop-lock´ mortgage begins as a tracker, but allows homeowners to ´drop´ into a fixed rate option if interest rates fall. The homeowner can then fix the rate, but this may well be permanent after the decision has been made. Most borrowers decide to ´drop´ into a fixed rate when they think the interest rates have gone as low as they will go.
Mortgage terms explained
Usually repaid over 25 years, spreading our repayments over a long term makes them more affordable each month. But where possible, set the term below 25 years if you can easily afford the repayments. This term may also be reduced or extended, depending on the lender´s terms and conditions. You will be mortgage-free sooner if you can reduce the number of years in which to pay the loan off. Some lenders offer a high rate to change the terms and conditions of the mortgage, so this is something to be clear about when you first take the mortgage.
Mortgage arrears and debt specialist companies Mortgage arrears are becoming increasingly common. If you find yourself in arrears, or if you think you may be facing problems in the near future, contact a specialist debt company such as debts.org, who will explain your options in a friendly and professional way. You may be able to take advantage of a debt management plan or an individual voluntary arrangement to improve your finances without having to remortgage or face repossession of your home. We can help you arrange an alternative repayment plan so that you avoid house repossession.
Labels: debt specialist, homeowners, interest rates
Stressed and Repossessed
posted by debts.org at 04:44
What to do if you home is under threat of repossessionWith home repossessions increasing, the Council of Mortgage lenders estimated that over 170,000 mortgages would be in arrears by the beginning of 2009.
If you are in arrears with your mortgage, the first thing to do is contact your mortgage provider as soon as possible. Present to them detailed statements of your income, spending and debts, and explain what you would like them to do for you. Never ignore calls or letters from your mortgage lender as the quicker you deal with the situation the quicker a solution can be found. Lenders have a range of options to deal with customers in difficulties, and you may be able to cut your monthly payments or even freeze them for a limited amount of time.
Where possible, contact your lender before you have any mortgage arrears, and explain that you are worried about not being able to pay next month´s mortgage. If you are in arrears, you could come to some arrangement with your bank or building society which allows you to add the arrears on to your mortgage agreement. You may also be offered an extended mortgage term so that your monthly payments are cheaper, although you will be paying them over a longer period of time. Too many houses are repossessed without homeowners looking into other options such as debt management plans and Individual Voluntary Arrangements.
Contact your lender or your house could be repossessed
If you are in arrears with your mortgage, your lender will write to you to ask you for payment. If you cannot meet this payment, your lender could take out a county court order against you. Even at this stage, you will not necessarily lose your home, and a repossession court order can be abandoned if a payment plan is agreed in the meantime. Having said that, don´t leave it until the last minute to try and arrange a payment plan with your lender. Your application for improved mortgage arrangements will be looked upon much more favourably if you contact your lender as soon as you default on your first payment. If a house is repossessed, and an eviction takes place, you must be informed of the date in advance.
Can I leave the house and leave the debt?
If you hand back the keys to the lender, and walk away from the house you could still be liable for costs and any shortfall on the mortgage after the house is sold. Many repossessed houses are sold at knock-down auction prices, and this may fall well short of the loan amount you originally borrowed. You may also be liable for any costs incurred by the lender in order to sell the property. Walking away is not necessarily an easy way out. A refinance mortgage may not help either, and the best way to get your finances in order is to contact debts.org for free advice.
How can I avoid house repossession?
More and more homeowners are using schemes to sell their properties then lease them back from the lenders to avoid repossession. Although you would then avoid the stress of eviction, you must be very cautious when accepting one of these deals. It´s not unheard of, for landlords to issue tenancy agreements for 6-12 months and then increase the rent so much, that you face losing your home anyway. Controls are in place to regulate mortgage lenders, and the way you are treated when in arrears, but not for sale-and-leaseback schemes. Avoid repossession and contact a debt specialist company who can advise you about Individual Voluntary Arrangements and Debt Management Plan.
Advice about home repossession
Last minute legal advice can be sought from the courts on the day of the repossession hearing, but this is little use to the homeowners who are trying to stave off repossession of their homes. Don´t leave things until the last minute. If you think you are getting into debt and have debt problems, The Consumer Credit Counselling Service, a debt advice organisation, has set up a dedicated help centre for people having trouble paying their mortgage. Shelter has a free housing advice line on 0800 800 4444 or you can contact your local Citizen´s Advice Bureau for help. Alternatively contact debts.org for free, friendly and professional help and advice.
Labels: council of mortgage lenders, lenders
House Repossession Explained
posted by debts.org at 04:39
What is a house repossession?A home repossession takes place when the mortgage lender takes possession of a house, in order to sell it and recoup money owed by the lender. This course of action is normally taken when the homeowner falls into arrears with the mortgage payments. If a loan is secured on the property, a financial institution can also repossess the house if a borrower falls behind with repayments on a secured loan.Borrowers who are struggling to meet their monthly payments now have more options available to them. You can contact a debt specialist company if you are struggling to make ends meet, and they will explain debt management plans and Individual Voluntary Arrangements, which can be set up to before your debts become too serious.
Home repossession and your options
If you are struggling to meet your monthly mortgage payments, there are several options to help you out. You can renegotiate terms and conditions of the mortgage agreement with your lender, or you can switch to a cheaper mortgage or an interest-only deal. Your lender is not under any obligation to change your mortgage conditions, so you should shop around to find the best deal for you. You could sell the house yourself to pay the outstanding debt, but if this fails, repossession usually follows.
How common is house repossession?
House repossessions soared during 2008, as increasing numbers of homeowners were hit by the credit crunch. The number of house repossessions last year, is reported have risen by 20% to 114,296. But bear in mind, not all repossession orders result in repossession of your house, and it is possible to come to an agreement with your lender before they consider this course of action.
Why are home repossessions on the increase?
A recession is usually accompanied by an increase in house repossessions, as more people lose their jobs, which causes them to fall behind with their monthly bills, including rent and mortgage. The credit crunch has increased the problem of house repossessions, as more people struggle to pay their bills, and rely heavily on credit cards. A sharp increase in interest rates last year also left many homeowners unable to pay increased mortgages.
Repossessed houses and house prices
Repossessed house are normally sold at auction at a knock-down price. Overall this can knock down house prices generally, but when house prices fall, consumers are less willing to spend, and this puts pressure on inflation. If you are starting to struggle with your mortgage, your rent or any other debts which may put your home at risk, you should contact debts.org who can arrange a debt management plan (DMP) or individual voluntary arrangement to (IVA) suit your needs.
Repossessed houses and reasons to choose an IVA
1.You will keep your assets – you will not lose your home or car
2. Protect your privacy – unlike bankruptcy your IVA is not made public
3. Safeguard your job – IVAs don’t stop you from holding certain positions
4. Save money – the arrangement fee is cheaper than filing bankruptcy
5. Prevent legal action – your creditors cannot take you to court
6. Stop harassment – creditors must not contact you directly
7. Reduce debt – an IVA can reduce your debt by up to 70%
8. Give you a fresh start – after five years all remaining debt is cancelled
Reasons to choose a DMP to help your debt problems
1. Cost effective – every pound you can afford to pay goes to your creditors.
2. Stops harassment – creditors deal with us instead of you
3. Debt reduction – interest can be reduced or frozen
4. Flexibility – when your circumstances change so can your payment plan
5. Peace of mind – knowing all creditors on the plan are getting paid
6. No legal implications – the plan is not legally binding
7. Assures creditors – demonstrates you are serious about honouring debt
The number of repossession orders sent by courts in England and Wales between April and June, 2009, compared to the last quarter of 2008, saw an increase of 24 per cent, and the total number of homes repossessed during this period was 28,658. Don´t become a repossession victim if you can avoid it. Never ignore letters or phone calls from the bank or building society, and seek professional advice from a debt solution specialist such as debts.org, who will charge you nothing for an initial consultation.
Labels: Individual Voluntary Arrangements, repossession
Whatever repossessed you?
posted by debts.org at 04:30
Bungling bailiffs repossess wrong houseWhen bailiffs stormed in to repossess Leanne Faulkner´s home, they had only one thing in mind.It was only after they disconnected the water, gas and electricity, and even sealed up the toilet they realised they had repossessed the wrong house. The bailiffs had packed Leanne´s belongings, emptied the freezer and even taped up her letter box.
Lynne Faulkner, 30, from Wythenshawe, Manchester, said ´ I couldn´t believe it. A big sign had been posted on my door saying my home had been repossessed and I had 7 days to get out with all my possessions. My taps and letter box had been taped up and they had changed the locks on the windows, and left them open. The place looked like it had been ransacked.´
After forking out £300 to have the power and water turned back on, Leanne explained: ´I wanted them changed as I was worried they would come back.´
Mortgage company, GE Money, blamed an ´administrative error´ and offered compensation which Lynne says is not enough.
A spokesman said: ´Bailiffs were regretfully instructed to take possession of an incorrect property, resulting in significant inconvenience to Miss Faulkner. This situation is clearly unacceptable and we have apologised.´
If you are struggling to pay your mortgage and are under threat of house repossession, contact debs.org who may be able to help you with a debt management plan (DMP) or an individual voluntary arrangement (IVA) to stave off repossession.
Labels: repossessed
Understand your credit rating
posted by debts.org at 04:59
Who has a right to credit?In these days of credit crunch and recession, more people than ever are applying for credit, and more people than ever are being refused. Lenders use their own methods of checking borrowers´ criteria before they decide whether or not to lend you money. Credit reference agencies supply data to the lenders about your circumstances. If you are struggling financially, you may find a debt management plan or an Individual Voluntary Arrangement is better for you than more credit.
What can a credit reference agency do?
A credit reference agency is a commercial company which gathers information from different sources, including the electoral role and financial institutions about individuals applying for credit. They may also check county court judgements which have gone against you. They then sell this information to lenders who will use it to help decide whether to grant you credit. The three main credit reference agencies in the UK are: Call Credit, Experian and Equifax. Before applying for credit, make sure you can afford to pay your existing loans/debts. If you are struggling with finances, you should contact a debt management company who may recommend a debt management plan or an Individual Voluntary Arrangement to help you, rather than applying for more credit.
What information do credit reference agencies have?
Credit reference agencies hold personal information from previous credit applications, including: your date of birth and your current and previous addresses. Your credit history is the main part of the report, and this lists the date any credit accounts were opened, the credit limit or loan amount at the time, and whether you defaulted on any payments. Account details stay on your report for six years after you complete on a loan or finish paying a credit card.
Recording a credit search and debt management plans
Agencies record a credit search every time your credit report is observed, such as when you apply for a loan or buy an item which has interest free credit. Searches will stay on your credit report for two years. Although your file records the name of your current account provider, it will not show further details, unless they are relevant to you applying for further credit. Public record information may also be included such as house repossession, county court judgements and bankruptcy. Personal information such as religion, medical history or criminal records is not included.
What are lenders looking for when I apply for a loan?
You are likely to be asked details of your income, assets and employment status before a loan will be granted. By using information from credit reference agencies, lenders will assess how much of a risk they are taking if they lend you money. You can struggle to be granted a loan if you are not on the electoral role, or if you have not had credit before, so that no record of regular repayments can be shown. You may also have trouble getting a personal loan if the lender thinks you already have too many loans or credit cards. If you are turned down by one lender, it doesn´t necessarily mean you will be turned down by another, so be prepared to shop around. Personal loans serve a useful purpose if you can comfortably afford to pay them back, but don´t rush into anything without checking the small print and without checking other options if you are in debt, such as a debt management plan or an Individual Voluntary Arrangement.
What are my options if I am refused credit?
Nobody is under any legal obligation to lend you credit. You may be turned down altogether, or offered a sum of money much less than you applied for. If, however you have relevant information that could swing the balance in your favour, you should present this to your lender when you apply for the loan. The lender must tell you the name of the credit reference agency which supplied them with your personal information.
How can I check my file with a credit reference agency?
It is always a good idea to check your file regularly, maybe once every 12 months to make sure that information held is correct. Even if you have not been refused credit before, you should keep a relatively close eye on your credit file. Under the Data Protection Act, Experian, Call Credit and Equifax must, by law, provide you with a statutory credit report for a nominal fee of £2. Once you have sent the agency your date of birth, all addresses for the past 6 years and your full name, you will be sent a report containing your basic credit file. A higher fee may give you continuing access to your file.
What to do if there is a mistake on your credit file
You can dispute the inaccurate information on your credit file and insist that errors are corrected. Accurate information cannot be removed however. If family members are listed on your file, with whom you have no financial connection, you can ask the creditor to remove them. Incorrect information should be removed within 28 days. If you can´t resolve the matter directly with the creditor, then ask the credit reference company to look into your file. If the credit reference agency does not reply within 28 days, you can ask the Office of the Information Commissioner to investigate whether the Data Protection Act has been breached. Thousands of people find themselves in debt every year with credit companies, and you should remember you have rights. If you are feeling the pinch, or seriously struggling financially you should contact debts.org, a professional debts solution company who can explain your debt solution options. Debt management programmes and Independent Voluntary Arrangements may be far preferable to you than extra bank loans and credit.
What to do if there is evidence of fraud on my credit report
If you suspect fraud on your credit rating report, you should contact all three credit reference agencies immediately. Request your credit file from each of them, explain that you suspect fraud and ask that an alert be noted on your file. Take advice from them about whether to inform the police or not.
Are credit repair firms genuine?
A large number of firms promise to ´repair´ your credit for a fee, but the Financial Services Authority says you should beware of using such services. Under the Data Protection Act, credit reference agencies are obliged to correct mistakes made or add a correction notice to your file without charge. And remember, the National Debtline and the Consumer Credit Counselling Service can offer free advice about dealing with debts, county court judgements and credit loans. Debts.org can arrange professional advice and point you in the right direction to help solve your debt problems.
Labels: consumer credit counciling, national debt line
Personal loans to reduce debt problems
posted by debts.org at 04:56
Depending on how healthy your finances are, you can borrow up to £15,000 from a bank, building society or loan company. The money normally has to be paid back from between 6 months and 10 years.Secured and unsecured loans and debt problemsSecured and unsecured loans can help or hinder your debt problems, so you need to think carefully before taking one out. A secured loan is one that is directly linked to your house, which means you may have to sell your home if you can´t keep up with repayments. Unsecured loans are not linked to anything, but if you default on your repayments, you could be credit blacklisted.If you are credit-blacklisted you could be prevented from taking out new credit cards, an interest-free deal in a shop or a mortgage.Shop around for the best loan deal for youFor the best loan deal for you, shop around and take your time to read through the small print before making a decision. Rates normally charged are between 7% and 20%, but generally, the more you borrow the lower the rate. You can even get a bank loan deal through supermarkets nowadays, so don´t think banks and building societies are the only options. If you think by taking a loan you will be getting yourself into more debt, and have difficulties paying it off, then look for alternatives. Debts.org can advise you about debt management plans (DMPs) and Independent Voluntary Arrangements (IVAs) which could help you, without increasing your debt problems.
Beware APR on personal loansBe careful when comparing the terms and conditions of different personal loans, as lenders calculate the annual percentage rate (APR) in different ways. You may be able to get a loan for a specific item with cheaper interest rates. Ignore monthly interest rates advertised by loan companies, which are always lower than the annual rate and can be misleading. Make sure you understand what you are letting yourself in for before signing on the dotted line and ask plenty of questions.Monthly repayment problems on personal loans
Loans are normally repaid by monthly instalments, over an agreed period of time. You may be in a position a few months/years down the line to pay off the whole amount owed in one go. Be aware of any penalty you may be asked to pay for early repayment of the loan in full. Where possible, keep the repayment period to a minimum as the longer that period is, the more interest you will be charged in the long run.
Advice about flexible loansFlexible loans are becoming more popular, and allow you to pay back the loan as and when you want (terms and conditions obviously apply). Flexible loan interest rates are usually higher. Always find out, when taking out a loan, what the monthly payments will be and how much you will pay back in total. This gives you a clear idea of whether it is worth taking out or not, or whether you should seek advice from debts.org about alternative arrangements such as a debt management plan or an IVA. If you are turned down for a loan your bank or building society must state why.
Labels: calculate, fexible loans, IVA
Help with debt management plans IVAs and bankruptcy
posted by debts.org at 04:47
Are you struggling to pay your credit card debts, your mortgage or your monthly grocery bill? With the help of a debt management plan or an IVA you can completely change your life for the better. Suffering serious debt problems is one of the most stressful things you may ever have to face, but the good news is, you don´t have to face it alone. Debt management and debt advice companies, such as debts.org can help you today. And remember, if you face your debts head on, and try to find a resolution to suit all parties, the situation is rarely as bad as you think, and house repossession is by no means a foregone conclusion.When do I need to seek debts advice?
You should seek debts advice with debts.org if you are:
• Falling behind with your mortgage
• Having to live increasingly off your credit card to make ends meet• Taking cash/credit from parties you would not normally approach
• Borrowing money from friends or family to pay bills or pressing creditors• Borrowing money on one credit card to pay another
Wherever possible you should nip your overspending in the bud, and try to divert some of your income to pay relatively small debts before they accumulate. If you can´t do this then you should seek professional advice from debts.org who will walk you through the process of debts management plans and Independent Voluntary Arrangements. The sooner you do this the more hope you have to resolve your situation. As tempting as it is, never ignore the situation – it will only make it worse.
Is a debt advice company the solution?
An insolvency practitioner is a professionally-qualified person who can help resolve people´s financial situations. Insolvency practitioners are required by law to have a licence and are also required to have professional indemnity insurance. Alternatively you can speak to a debt advice company, who can offer you several options to reduce your debt.
Meeting with an insolvency practitioner
You may be worried about your house being repossessed, or your debts may simply have become too much to cope with. An experienced debt advisor will explain and arrange the best options for your individual circumstances. Most people with debt problems are embarrassed to come clean about the extent of their debt, but you need to realise that the majority of debt relief companies and debt management companies have heard it all before, and there is no need to feel uncomfortable. The straighter you are about your situation, however dire you perceive that to be, the more likely you are to find a debt solution. You should take along with you a list of your assets and liabilities, plus details of your income and expenditure. Different options will be explained to you clearly so you understand the options open to you. Contact debts.org for free and helpful advice on any of the following:
Debt management plan to help debt problems
A debt management plan (DMP) is a method used in various countries for paying unsecured debts in a manageable way. Often, debts spiral out of control and can exceed income. A DMP involved a third party (debt management company) who will assess income and budget and debts, and will re-negotiate interest rates and payments with the lenders to help the debtors.
Negotiated rates are based upon the higher probability that the lenders will be able to recoup some of the original debt, if not all of it, by allowing the lender to pay more realistic repayments every month. Any terms put forward on behalf of the debtor are assessed at the discretion of the creditors, and once accepted, can help both parties concerned. A good debt service company would only suggest to the creditors that the lenders pay what they can reasonably afford, after priority debts are paid. Creditors may ask for an annual update of the debtor´s financial situation to make sure they are only paying what they can afford.
An IVA to help debt problems
Depending on personal and financial circumstances, the best option for you if you are suffering debt problems may be an Individual Voluntary Arrangement (IVA).
An IVA is a legally binding agreement with your creditors which a debt service company can help to arrange to give you enough time to get your house back in order. Once started, the creditors will be able to examine the proposals of the debt management company on your behalf, and if agreed, will take a back seat, while you implement the changes to your payments/arrangements. You may be expected to pay a proportion of your future income into a fund over a period of time, which would mean the creditors will receive more than they would, had you been declared bankrupt.
The arrangement could also involve a third party paying funds to the creditors to wipe out the debt and make a full and final settlement. This could be well-below the actual sum you owe, but could be accepted by your creditors.
Don´t assume you will automatically lose your home or have your house repossessed, as in many cases you can retain the ownership of your private residence. Contact debts.org for sound, professional advice about your circumstances and the best route to take to help with debt problems.
Bankruptcy is not always the answer to debt problems
Although bankruptcy does not carry the same stigma it did years ago, you may well find that a debt management plan or an IVA will suit your circumstances better if you need debt help.
If an IVA is not appropriate for you, bankruptcy could well be the answer. You can contact a reputable debt management company for further advice about bankruptcy, but you will need to go to the county court to start the process. A bankruptcy normally lasts for 12 months but can be less, and you can usually continue to work during it.
Is there life after bankruptcy?
A court-appointed trustee, a professional person, will be appointed by the court to realise any assets you may have and deal with your creditors. The main asset most people possess is their house, but a trustee cannot seek to sell the house for at least 12 months if a spouse or children are involved. Bankruptcy does not automatically mean house repossession. Any decision will depend on the value of the house, the outstanding mortgage and the individual circumstances of the case. There are no hard and fast rules regarding the repossession of homes due to bankruptcy, so you should not be afraid to seek advice. After the conclusion of the bankruptcy, you can start to rebuild your life, and review your career options.
Apply for a debt management plan before the bailiffs come
posted by debts.org at 04:40
The biggest problem for people in debt is facing their debt problems head-on and not ignoring bills and phone calls from your creditors. The sooner you acknowledge the extent of your debt problems, the easier it will be to help yourself. You can arrange a debt management plan with debts.org which will pay off your creditors and give you peace of mind into the bargain.If you ignore your debts, you could end up with the bailiffs at the door, or literally, smashing through the door to remove your cash/assets to cover some of the debts you owe.
What to do if the bailiffs come
Due to the credit crunch, fines and debts worth millions of pounds are going unpaid every year in the UK, and bailiffs are busier than ever. If your debts are mounting up, stop the bailiffs visiting you by contacting debts.org who can discuss a debt management plan with you. If you are having problems paying a fine or outstanding debt, contact the court or relevant organisation and try to negotiate with them. If you are slow to contact them, or make no contact at all, they will assume you have no intention of paying. The debt could then be passed to a debt collection agency, or a warrant could be issue by a court to authorise bailiffs to try and recover the debt. Debt management plans work best for you if you contact debts.org as soon as possible, when you realise your debts are spiralling out of control.
How to pay a bailiff to cover your debts
If you don´t address your debts in time, and you have major debt problems, particularly with fines, a bailiff will try to recover the money from you. You will be asked for a secure method of payment, including cash, debit or credit card, but bear in mind you will have to pay a handling fee if you pay by credit card. There will also be an additional fee if a bailiff has to visit your home to recover the debt, and this fee is set by the court.
Are bailiffs allowed in my house?
Controversially, since 2004, bailiffs have had the legal right, in some circumstances to force entry to private homes to seize goods or money owed. This can apply if you owe fines, fixed penalties, or tax arrears, and is enforced by a magistrates court. Bailiffs do not have the right to force entry to your home for debts of any other nature. Bailiffs are only allowed to take your belongings if they have proper written authority, such as a warrant issued by a court, or in some cases, a creditor.
Advice about goods removed by the bailiffs
When bailiffs take your belongings, the company/authority you owe money to can sell your goods at auction to recoup some of the money they are owed. Basic household items however, such as beds and clothing should not be removed. Extra fees will also be added for moving, storing and selling your goods. The rules on bailiffs are complicated and vary widely depending on how much the debt is, and who you owe it to. Never ignore demands for payment of fines and fixed penalties, as there are always opportunities to negotiate. Contact your local Citizen´s Advice Bureau for specific advice about your circumstances if you fear the bailiffs may be paying you a visit.
If you are in debt and feel there is no way out, debts.org can help arrange different options to help you get out of debt. Avoid the bailiffs by arranging a sensible debt management plan or Individual Voluntary Arrangement with debts.org to solve your debt problems.
Labels: bailiffs
Houses repossessed
posted by debts.org at 04:31
House repossession help and adviceWith over 75,000 houses expected to be repossessed in 2009 in the UK, thousands of homeowners face losing their properties. If you are at risk of losing your home, there are some key pieces of advice to consider:
• Do not ignore warning letters/calls from your lender. The problem will not go away unless you take action. Advice about house repossessions and how to reduce your debts is available from debts.org• Look at all the options and decide whether you can cut back on spending without hardship
• Could you rent out a room or increase your income in any other way?• Are you behind with other loans secured against your home? If repossession of your house is a real possibility, this debt must take priority over other unsecured debts. Debts.org can help you arrange a debt management plan which could save your home from repossession.
• If you feel you can´t make savings, don´t give up hope. The Citizen´s Advice Bureau and the Consumer Counselling
Service will give you sound advice for free
• Trained experts will advise you on the next steps to take and how best to negotiate with your lender. You can also check out their websites for useful information and tips regarding repossession, redundancy and debt problems
• Some lenders will push for repossession, while most will only go down this route when there is no alternative, so be seen to be trying to solve the problem, and stay in touch regularly with your lender. Don´t let your house be repossessed if you can apply for a debt management plan to help your financial situation• The ´Pre-action protocol´ was strengthened recently and states that lenders must explore every avenue before repossessing homes. Lenders must now prove they have done this before repossession takes place, or the case can be thrown out of court
• When talking to your lender be 100% honest about your finances and the amount YOU can afford to pay without suffering hardship. Debts.org can help you arrange a debt management plan
• The lender will be far more helpful if you prove to him you are trying to stave off home repossession and not ignoring the threat
House Repossession and debt management plans
If you choose to ignore your lender, or cannot make payments, they can apply to the county court for a repossession order. If you are worried about repossession, you should contact debts.org when you first start to have difficulties paying your mortgage. We can help you arrange a debt management plan to stave off any threat of house repossession.
Court orders for house repossession in the UK
The lender may write to you before applying for a possession order, but remember there is no legal obligation for them to do so. If you fear your house may be repossessed, contact debts.org as soon as possible. The first contact you receive from your lender could be a court summons, with a hearing date, at least 28 days after the summons date. Even if your lender tells you that you don´t need to appear at court, always appear at court. It is your right to attend court and put your case across. Remember the court, and not the lender, makes a final decision on the possible repossession of your house, and if you can offer a repayment which you can sustain, the judge could decide in your favour.
If your house could be repossessed go to court prepared
Go to court prepared to stand your corner. Explain to the court why you are in the financial situation you are, and why you are struggling to pay your mortgage. You may have been made redundant, suffered ill health or an accident or even lost a loved one who contributed to the family finances. You may be returning to work after an unexpected absence, which will improve future finances. There are a number of reasons why a judge may decide a home repossession case in your favour, and you need to present them clearly. The Citizen´s Advice Bureau or Shelter can help you with preparing paperwork for a repossession court order, but if things have not reached this stage, contact debts.org for advice. If you think you may have problems with home repossession in the near future and are already struggling to pay your mortgage, contact debts.org who will talk you through your options. Don´t let your property become one of the thousands of repossessed houses for sale, take advice and stand up for your rights.
Labels: citizen advice bureau, house sales
Beware store card debts
posted by debts.org at 04:27
As tempting as they are, store cards should be treated with extreme caution. You may save in one way but lose out big-time in another. You may secure discounts on your shopping, but shoppers often end up paying extra with the addition of high interest charges.Store card small print equals serious debt problems
Store cards can be an easy sell for the checkout assistant who offers you 10% off your whole trolley of shopping, as you are harassed, weighed down with bags and happy to ´sign anything´. Obviously, once you have signed for the store card you are unlikely to do your grocery/clothes shopping elsewhere.You can be encouraged by the discounts and convenience that store cards offer, but they can also charge you up to 30% annual percentage rate (APR) on your purchases. Always look at the small print before signing any type of store card agreement, and make sure the APR is not an unacceptable rate. Remember, shopping on credit or, what was commonly known as the ´never-never´ was always looked down upon in the past, but now it seems to have become an acceptable way of life for millions of people. Problems arise when store card debts spiral out of control, and high APR on purchases make repayments almost impossible. Check you can afford to pay off store cards monthly, or you could end up with more serious debts than you started with.
Store card rights and responsibilities
When you take out any kind of credit agreement, whether it is store cards or credit cards, you should always be aware of your rights and responsibilities. You may have rights that you are unaware of, which can benefit you should you fall into serious debt with store cards or credit cards.Plastic is the chosen method of payment nowadays, and increases buying power on the high street. Store cards don´t present a problem if you can discipline yourself not to overspend and to pay off the balance within the interest free period which is normally between 35 and 55 days. However, if you can´t pay the outstanding balance each month, the interest will quickly mount up your debt will rocket sky high, if you don´t reign in your spending. Always check retailer rates carefully before signing anything (the worst rates hit 30% but some of the lower ones are just 13%). If you can find a credit card issuer with an APR of 13% or less, this may be a better option than taking out a store card with a much higher annual payment rate.
Labels: percentage rate, store cards
Credit card debts
posted by debts.org at 04:24
Is it worth changing my credit card provider?If you are in debt and struggling to pay off your credit card bills, one option is to switch to a new credit card issuer. But don´t rush into anything, and never accept a seemingly ´incredible offer´ until you have read the small-print of any new agreement. If you are being offered 0% interest rates on balance transfers for 6 months to switch your credit card provider, and you feel you can pay off your credit card debt in 6 months, then to switch over would be a ´no brainer´. If however, you will not be able to pay off the debt within the period of 0% interest, the rate will go back to normal, and the increased monthly repayments after a 6 month period will outweigh any benefits of the introductory offer. Banks should warn you just before the introductory rate stops, but be aware that this is not always the case. If you are suffering with unpaid credit card debts, or any type of debt problems, Debts.org can help you with a debt management plan or an Independent Voluntary Arrangement.
Credit card debts can be avoided
Always check your credit card bill for errors. Credit card issuers are not infallible. Where possible, pay the whole amount, and never be tempted to only pay the minimum amount if you can afford to pay more off. Minimum amount is normally only 3% of the total debt, and the interest charged amounts to a lot of money over a year, that could be better spent paying off other debts or bills. If, for example your store card has an interest rate of 20%, over two years, you will end up paying twice the original cost of the item. Credit cards and store cards may look an attractive option when you are looking to buy new clothes, electrical goods or even a car, but never spend more than you can afford to comfortably pay off, or you could end up paying back hundreds of pounds in interest for a relatively small initial outlay.
New credit cards can mean new debts
Applying for new credit cards has major disadvantages. Agencies can monitor the number of cards you have, and receive reports from credit card issuers about your payments. You may be refused a new credit card if the lender decides you have too much outstanding debt.There are disadvantages with taking out new cards. Agencies monitor the number of cards you have and get reports from credit card issuers on how you deal with them. You may be refused if the lender decides that you have too much outstanding credit. If you do decide to apply for another card, you need to find out how much credit they will give you,and how much monthly interest you will pay. Credit card issuers will offer good deals from time to time for balance transfers, but always remember, new credit cards can mean new debts. The best scenario for all credit card issuers is that, once you have agreed to switch your debt to them, and your six month 0% interest agreement has finished, you will return to your spend, spend spend ways, when the interest rate has returned to normal. You may be tied into a deal with them, and find yourself in a worse situation than before you switched your credit card issuer.
The only way this can really work for you, is to pay off as much as you can afford each month from your credit card debt, and don´t mount up more debt before it is paid off in full. Debts.org specialise in helping people with credit card debts and general debt problems. Our friendly team of professionals will guide you through the debt management plan options to help your personal situation.
Labels: credit cards, interest charges, store cards
Should I remortgage to help solve debt problems?
posted by debts.org at 04:18
At a time when thousands of families in the UK are suffering from the credit crunch, it may be tempting to remortgage your home to release much-needed cash, or simply to make your payments more affordable. Re-mortgaging can be the answer to your prayers, but it can also be a financial headache if you don´t choose the right options for you. Don´t jump at the first offer of a re-mortgage and take your time to shop around for the best deal to suit your needs.Save money by remortgaging
More than 50% of all borrowers are said to be paying more than they need to for their mortgages each month. Often paying the bank or building society´s standard variable mortgage rate, many borrowers are unaware that other providers will offer lower rates. If you are considering remortgaging to help with debt problems, look around to find the best help available. Debts.org can give you advice and guidance if you are thinking of remortgaging your home in the UK. Mortgage rates have been hiked recently to subsidise low interest rates, and mortgage arrangement fees have also risen, along with charges for early payment/completion of a mortgage. If you are attracted by low interest rates, always ensure that the mortgage fees don´t make re-mortgaging more expensive.
Who to contact for independent mortgage and remortgage advice Financial advisors can recommend the best type of re-mortgage deals for you. You will also find a host of independent mortgage brokers who will freely advise you about the general state of the mortgage market, and who will be the best people to approach for a re-mortgage. Brokers will, however take a commission from the provider they recommend to you, and this could bias things towards particular banks/building societies. With so many internet comparison sites available to you now, it is advisable, and usually cheaper, to do some of the legwork yourself. Debts.org can then advise you how best to go about your re-mortgage.
Check your terms and conditions before re-mortgaging
Always make sure you fully understand the terms and conditions of your existing mortgage before contacting banks/building societies about re-mortgaging. You can then assess if there are any early redemption penalties and also make sure you are not financially tied-in to your existing mortgage deal. Serious debt problems and credit card debt problems can be eased by releasing money by re-mortgaging, but you need to make the right decisions to ensure you will not be paying out more in the long run.
Many penalties for early repayment expire after a set amount of time. Decide whether it is worth switching to a different mortgage/rate or staying with your current mortgage until the penalty dates have expired. Loyalty to banks and building societies is often misplaced. Ask yourself honestly, what they have done to reward your loyalty over the years, and never feel pressured not to move your mortgage if you can find a better deal.
Borrowing extra money through remortgaging
The main reason borrowers choose to remortgage, is to save money, and possibly to use it to clear other debts or loans. But you may want to remortgage to release some equity that has built up in the value of your property. Equity release is not uncommon, but you need to be cautious. It may work out cheaper on paper to borrow extra money through your mortgage, but the debt would then become secured. A secured debt is one that, if you default on your re-payments, means you could lose the collateral used for the loan. (Your home, in the case of a mortgage).
What remortgage choices will I have?
The most likely remortgage offers you will face will be fixed, capped, flexible or discounted arrangements. Fixed rate mortgages and remortgages are favoured by homeowners who want the certainty of paying a fixed amount each month. This rate can be fixed for between 2 and 5 years.
A capped-rate loan will offer a limit on the rate you pay. If interest rates rise your repayments will not go over a certain level, but you can still gain if rates fall below the capped-amount, as you will pay less.
Flexible mortgages enable you to overpay and underpay your mortgage repayments when you choose, and without penalty. This is ideal for people who have fluctuating incomes each month, or for those who may want to clear their mortgage early.
Discounted mortgages offer a reduction off the standard variable rate (SVR) for a set amount of time. If interest rates fall, the rate you pay will also fall but obviously it will rise with any interest rate increase.
If you are suffering debt problems, it may be that other options are open to you, apart from re-mortgaging. Debts.org can give you advice about debt management plans and Independent voluntary arrangements, as well as remortgaging options.
What to avoid when remortgaging
Try to avoid any remortgage deals with extended early payment penalties. Several lenders are now attempting to re-introduce extended penalties to avoid borrowers from switching from one bank to another in an attempt to reduce their repayment amounts. Always read the small print of any deal, and insist you are shown a clear print-out of all charges you are expected to pay if you agree to remortgage your home. Never sign anything you are unsure of, and take independent advice if you are worried about any of the remortgage clauses.
How to remortgage your home
When you decide to remortgage your home, firstly obtain a statement from your current lender which states how much money you still owe. Secondly, complete an application form for the bank/building society from which you intend to remortgage, along with details of your income, payslips, mortgage statements and proof of identity, plus a P60 form where applicable. The new lender will then carry out a survey on your home, which can cost up to £300. An arrangement fee may also be charged by the new lender which can cost from £200 to £1,000, depending where you are in the UK and the amount of your mortgage. If you shop around you may find lenders who will offer remortgaging services with free legal work and valuations, but the majority will charge you something.
Remortgaging works for thousands of people a year in the UK, but the main point to remember is: Always make sure savings on the monthly mortgage payments outweigh any costs incurred while making the switch from one arrangement to another.
How long does it take to remortgage a property?
It shouldn´t take longer than a month to remortgage a property, and the new lender will liaise with your previous bank/building society to complete any formalities.Once you have received a completion statement from your solicitor or from your new lender, the process is complete.
Debts.org can give you advice about a range of options to help you with debt problems. We are here to help, and our friendly staff will give you sound, professional advice about getting out of debt. Here at Debts.org we will explain and offer advice about debt management plans, Independent Voluntary Arrangements, remortgages and even bankruptcy.
Labels: building society, debt problems, variable mortgage
Top twenty tips to overcome debt
posted by debts.org at 04:41
With credit card holders in the UK now owing an average of £2,200 each on their plastic, and with a massive downturn in consumer spending on the high street, shoppers are reining in their spending and attempting to reduce their debts. Most credit card debt problems arise when people continue to only pay the minimum possible each month, which typically for a debt of £2,200 would take two years. You can avoid serious debt, and make significant savings by taking note of the following money-saving tips.1. Remortgage
Make sure the mortgage arrangement you have is the best one available on the market to suit your needs. If, for example you are paying your lender´s full standard variable rate, you are probably paying much more than you need to. Thousands of re-mortgaging deals are available to choose form and always check the small print for hidden costs. Remember the only person who benefits from loyalty to your bank is your bank, so don´t be afraid to look around for the best remortgage options available to you. If you can afford to make overpayments then do so.
2. Deal with credit card debt problems
If you are trying to manage your debts better, the first rule of thumb is: clear your most expensive debts first. Unless your house is at risk, and you can no longer afford to pay your mortgage, try to pay off your credit cards. If you are struggling to pay your credit card debt every month, consider a low interest loan to pay-off the whole amount. Typically, a credit card debt with APR of 15% will cost you a lot more than a loan with interest of 6%. You could save hundreds of pounds this way.
3. Avoid debt by cutting the cost of fuel bills
Fuel bills are rising all the time, as the demand for power could one day outstrip supply. Remember the domestic market for fuel is a competitive one, and you can easily change supplier these days. A new supplier will arrange the formalities with your previous company, and will usually be glad of your business, and ensure lower payments will be pay less.
4. Install a water meter to save money
Debt management is not rocket science. By reducing the cost of your water, by changing suppliers, you can save hundreds of pounds a year. Water companies exist to make a profit. In return you have water flowing from your taps, but if less rain falls, the price of water can increase. If you have a big house with few occupants, by installing a water meter you are likely to save the most money.
5. Reduce your home phone bills and avoid debt
There are scores of cheaper alternatives in the UK today than British Telecom, which is not a monopoly. Packages can include your landline telephone, television and broadband internet access, and even low cost services which give you access to your existing BT line. Cheap call options and even free local call options are available from most telephone companies now in the UK, so call around to save hundreds of pounds a year, and to find the best option for you.
6. Make mobile pay-as-you-go
Until relatively recently, mobile phones were unheard of. Now it seems everyone has a mobile stuck to their ear for the most part of the day. If you over-use your contract mobile and run up huge bills, shop around for a pay-as-you-go phone with special packages and programmes, which mean you pay very little for your calls. This can literally save you hundreds of pounds a year.
7. Make a shopping list to avoid overspending in the supermarket
Food shopping makes up a major part of our monthly outgoings. Make a list of the items you need and stick to it. Supermarkets even employ experts to tempt us to buy more by means of clever marketing, positioning of goods and even music and smells. Also you will spend more than you intend to if you are hungry when you go shopping. Eat before you go! And remember, avoid food wastage when making pies, stews and curries, by cooking more than you require and freezing what´s left over.
8. Take a trip to the market to save money on food shopping
Buy fresh fruit and vegetables from the market, and you will not only be eating healthier, but you will also save money into the bargain. Lower overheads at the markets usually result in lower prices, which can save you hundreds of pounds a year.
9. Buy own-brand goods in the supermarketsFar too many of us are brand-snobs, who would never consider buying own-brand goods in the supermarket. Try it and you will be pleasantly surprised. Thousands of own-brand goods can now be bought for up to 50% cheaper than major brand names, and the quality is very high.
10. Use e-bay to sell your unwanted goods
There is no better time than now to sell your unwanted goods either at a flea market or online with e-bay. Quick and easy, you can earn hundreds of pounds from selling unwanted clothes, books, white goods, electrical goods or shoes on e-bay. This online auction house makes online selling and buying easy, and you can make a note that the buyer has to collect the goods. Remember one man´s trash is another man´s treasure, and you have nothing to lose by advertising it on e-bay. You can sell anything for the cost of a small commission. Have a look round the site and get a feel for it before bidding or selling. You can also pick up some great bargains on e-bay for presents.
11. Reduce your insurance payments
Shop around for car insurance, life insurance and household insurance. Insurance comparison sites on the internet now offer you hundreds of insurance options at the press of a button. Shop around to find the best deals to suit your requirements.
12. Book early holiday flights
Low-cost airlines offer cheaper prices when you book early. Book up to 6-9 months before your preferred departure date to a number of European resorts, and you can save hundreds of pounds. The lowest prices are advertised when they first go on sale, and they rise steadily the nearer they get to departure date. Take a look around some budget airlines sites (or go to www.skyscanner.net) which will search for you at the click of a button.
13. Stop smoking to save money
In addition to the health implications, and the fact that you are treated like a leper if you want to smoke inside these days, you can save more than £2,000 a year if you stop your smelly habit of 20 a day. Give yourself an incentive, and save the cash you would have spent on cigarettes, and buy something you have always wanted with the cash. Alternatively, use the extra money to clear your credit card bills.
14. Visit the library more often
If you are an avid reader, books can cost a fortune. Visit your local library where you can also take out CDs and DVDs which are expensive in the shops. Free internet access is also available in many libraries.
15. Use your ISA allowances
You can save up to £3,000 a year in a tax-free savings account called an ISA. No tax is payable on the interest accrued, so if you have spare cash in your current account, put it into an ISA and earn up to £150.00 per year in interest.
16. Claim benefits and tax credits
Benefits worth billions of pounds a year go unclaimed. Know your rights and find out exactly what you are entitled to. You could be suffering debt problems because you are unaware of the benefits you are legally entitled to.
17. Pay your car insurance annually
Too many car owners fall into the trap of paying their car insurance monthly or quarterly. Many car insurance companies charge premiums of up to £120 per year for you to pay in this way. Wherever possible, pay your car insurance annually to avoid any extra charges.
18. How many TV channels do you really need?
Once Britain changes to digital-only TV, there will be a range of packages to choose from. You can have the whole lot, including movie channels, sports channels, news channels, cartoon channels etc., from around £50.00 per month. Alternatively, and think how many times you actually watch all of the channels, you can keep the basic BBC, ITV, Channel 4 and 5 options for free. The latter will save you hundreds of pounds a year.
19. Get rid of the ready-meals and cook fresh food
Preparing your own food will save you money and is usually a healthier option. Cooking does not have to be time consuming, and there are a range of books in the library that will give you good cookery tips and also save you time. If you plan your menus in advance, you can cook just once a week and freeze batches of food for the following week.
20. The Citizen´s Advice Bureau will help you for free
The trusted organisation, The Citizen´s Advice Bureau, (CAB) will help you to discuss debts and debt management, at no cost to you. The CAB´s professional and trained staff will help you work out a sensible strategy if you have debt problems, to help get you back on your feet. They can also help with all sorts of advice regarding housing, tenancy agreements and debt management.
Labels: bills, insurance, ISA, money, tax
Debt management after having a family
posted by debts.org at 04:36
Maternity and paternity payIf you are an employee, you should check your work contract or speak to the human resources/personnel department when you start work, about your rights to maternity and paternity pay. If eligible, you could be entitled to maternity/paternity pay for up to 39 weeks. You must tell your employer at least four weeks before you want your statutory pay to start.
Maternity Allowance and the self-employed
You will not be eligible for statutory maternity pay if you are self-employed, but you may be entitled to maternity allowance for up to 39 weeks.
Sure Start Maternity Grant to help avoid debt problems after the birth
If you are pregnant and are claiming benefits such as income support you can apply for a one-off £500 payment to help towards buying baby essentials.
Child Benefit and how to claim
An addition to the family can prove a difficult time financially for many parents. You may already be experiencing debt problems or earning a low income. Make sure you claim child benefit as soon after your child is born as possible. Irrespective of your income, you are entitled to claim child benefit for children up to the age of 16 (or 19 if they are still in full time education).
Child Trust Fund and how to claim
Children born on or after 1st September, 2002 are entitled to a Child Trust Fund Voucher, worth between £250 and £500 depending on your circumstances. This sum must be invested in a tax-efficient Child Trust Fund plan until they are 18. The vouchers are sent out to everyone who is claiming child benefit.
Child Tax Credit and working tax credit
You can claim Child Tax Credit for your children even if your family income is as much as £50,000. Under working tax credits there is childcare part worth up to £240 per week if you have two children or more.
Sickness and disability benefits can help with debt problems
Statutory Sick Pay (SSP)
Statutory sick pay is paid for the first 28 weeks (from the fourth day) you are off work if you are an employee. This benefit is worth £79.15 a week for 2009-2010, but your employer may offer more generous terms. You cannot claim statutory sick pay if you are self-employed.
Long-term sickness benefits have changed recently. Up to October 2008 if you were off work for more than 28 weeks you were switched from SSP to Incapacity Benefit. This is replaced by the Employment and Support Allowance if you are applying for the first time. If you are already receiving Incapacity Benefit, this continues so long as you are eligible.
Losing your job and managing your debts
Losing your job can be a low-point in your working life, but you should be aware of the benefits available to you if you are made redundant. You may be entitled to a range of benefits such as jobseeker´s allowance, which can be based on your National Insurance Contributions or your income and savings. Your redundancy payment may affect your claim but it is worth checking out.
Your rights and retirement benefit
Once you retire, you may have debt problems, credit card debt or debt management problems. You should be aware of your rights regarding your retirement benefit.
Basic State Pension
The main state benefit paid when you retire is the State Retirement Pension, which is based on your National Insurance Contributions. If you are less than 4 months away from state retirement age, (currently 60 for a woman and 65 for a man in the UK), you should contact your tax office or the Pension Service.
Additional State Pension
Your entitlement to additional State Pension is also calculated when you claim the basic State Pension.
Winter Fuel Payment and avoiding debt
The winter fuel payment is between £125 and £400, and the amount paid depends on the age of the claimant. People receiving a state pension are paid automatically, but those aged 60-64, who do not receive a state pension, need to claim the winter fuel payment separately. Cold weather payments of £25 are made for each week of very cold weather.
Council Tax Benefit and how it can help you avoid debt problems in the UK
Age Concern estimates 2.2 million pensioner households miss out on Council Tax Benefit as they don´t know they are entitled to it. This benefit could cut pensioner´s council tax bills by an average £645 a year.
Benefits after the death of a loved one
There are a range of benefits to help you financially when you lose a partner or a child. In addition to suffering grief and emotional trauma after the death of a loved one, you may find yourself with debt problems, and unable to pay the bills. Be aware of what you can claim.
Bereavement Allowance
Formerly called the Widow´s Pension, Bereavement Allowance can be claimed if you were over the age of 45 when your wife, husband or civil partner died, and they had paid national insurance contributions. You could be entitled to a weekly bereavement allowance for a year.
Bereavement Payment
Formerly the Widow´s Payment, Bereavement Payment can be claimed if your husband, wife or civil partner was not entitled to state retirement pension when they died. You could claim a £2,000 tax-free sum.
Widowed Parent's Allowance
Formerly known as Widowed Mother's Allowance, this benefit is a regular payment that you may be eligible for if your husband, wife or civil partner has died and you have a dependent child (aged 16 and under 20) receiving Child Benefit.
You may be eligible for Funeral Payment if you receive either tax credits or certain benefits and need help paying for a funeral, although the money may have to be repaid from the deceased person's estate.
Labels: allowance, benefit, pension
How to cope after redundancy
posted by debts.org at 04:22
Losing your job can be devastating for you and your family, but there are ways to make things easier. If you have suffered redundancy or you think you may be made redundant in the near future, be aware of your rights. Serious debt problems can arise after redundancy but you should be aware of your rights.Employers are legally obliged to make sure the selection process of redundancies is fair and objective. You must receive an explanation in writing for your proposed redundancy, and company reasons for the redundancies must be genuine, as opposed to being an excuse to dismiss certain members of staff.
You should always check your contract for details, including any compensation you may be entitled to. You should expect, at least the following:
1. If between 20 and 99 people are being made redundant by your firm, those employees should be given at least 30 days notice, and 90 days notice if there are 100 or more jobs at risk.
2. Employers should try to find you alternative work in the organisation if at all possible.
3. If you have been employed for two years or more with the same organisation in the UK, you are entitled to some redundancy pay
4. An employer may make redundancies based on an individual´s attendance record, his disciplinary record or his appraisals, or they may work on the ´last in, first out´ principle. But be aware that age discrimination laws were introduced in 2006, which does not allow your employer to make you redundant simply because of your age.
5. Employers may ask for volunteers for redundancy, but they are under no obligation to accept your proposal, so don´t spend any lump sum before it has been approved.
6. Even if you have been with your employer for under 2 years, you should get notice pay, which by law must be at least one week´s pay for each year you have worked.
If you are unlucky enough to be selected for redundancy you will not be entitled to a pay out if you have been with your employer for less than two years. You should, however, get notice pay, which is at least one week´s pay for every month you work.
7. Any lump sum depends on your age, length of service (maximum 20 years), and your earnings (currently capped at £350 a week). If you are under the age of 22, you will be entitled to half a week´s pay for every year worked. If you are aged between 22 and 41, you will receive one week´s pay for each year of employment, and if you are over 41 you will receive 1.5 week´s pay for each year of employment. The most statutory redundancy pay an individual can receive is now £9,900.
8. If your employer cannot afford redundancy payment in the short term, the Redundancy Payments Office may make the payment from the national insurance fund. This can also happen if your employer goes into administration, and the debt is recovered by the Redundancy Repayments Office from the business at a later date.
9. Redundancy payments are tax-free up to £30,000, and includes the value of any items you are allowed to keep such as laptops, computers or work vehicle. Any accrued holiday pay is however, taxable.
Contesting a redundancy decision
If you think you have been made redundant unfairly, you can appeal against the redundancy. If you are already struggling with debt problems, an unfair redundancy decision could prove devastating. If you try to contest the redundancy decision informally, your employer may agree to you working less hours or even agree a pay freeze. If you want to appeal the redundancy decision through the courts, you can take your case to an employment tribunal, particularly if you feel age or sex discrimination was a factor. Also, if you feel the amount of redundancy offered to you was unfair, an employment tribunal may be able to help. You need to take action against your firm within 6 months of the redundancy notice being issued. You can ask for assistance with this from a Jobcentre Plus Office or by contacting debts.org.
What are you entitled to after redundancy?
You could be entitled to state benefits which will help you avoid any debt problems in the future. Depending on your individual circumstances, you may be entitled to Jobseeker´s Allowance or Income Support. Income support is not an option if you have over £16,000 in the bank, and you may get a reduced rate if you have between £6,000 and £16,000 in the bank. If you are entitled to receive income support you could also get discount on council tax, and could qualify for mortgage interest scheme, which is available to borrowers with mortgages up to £200,000. If you are not entitled to income-based benefits, you could still have paid enough national insurance contributions to receive Jobseeker´s Allowance, which is currently £60.50 per week for claimants aged 25 or over and £47.95 if you are aged between 18 and 25.
Planning your finances and debt management
Should you receive a lump sum as redundancy payment, don´t be tempted on blowing it on luxury holidays or a flash car. If you are still looking for work, you need to plan ahead, and leave yourself enough cash to cover the mortgage, rent and general household bills. Many people get into trouble with debt problems and credit card debt problems after they fritter their redundancy away on luxury items, while neglecting the bills. Debt mounts up easily so make sure your bills are paid before splashing the cash.
Also, if you are considering paying a large chunk off your mortgage, consider the options carefully. If you also have credit card debt, it may be more viable to pay off some of this first, as charges can mount up and prove more expensive. You may have taken out your mortgage many years ago, and not be clear about the terms and conditions. Always check to see if any of your loans have payment protection insurance attached, which could cover your repayments for a certain amount of time. These types of payment protection plans typically pay out between 50-75% of your previous income before you were made redundant. You may also have paid into a pension with your previous employer, and you need to check the terms and conditions of this before you leave. If the company is unable or refuses to meet its pension promises, the Pension Protection Fund may be able to help.
Finding a job after redundancy
If you have been employed for at least two years, you should be given time off with pay during your notice period to look for a job or suitable training scheme. Your CV should be updated and you should seek the help of a careers adviser. You may even consider voluntary work or freelance work while you weigh up your options and decide the best way to further your career. If you want to re-train for a different career, you could contact your nearest colleges to find out about possible courses. The cost of some courses can be reduced up to 80% for unemployed people. Your job centre will be able to help with careers advice and also offers help with your CV plus careers advice.
Can you claim state benefits?
Thousands of people a year fail to claim state benefits they are entitled to. If you are in debt or suffering debt problems, you should check out what state benefits you are entitled to, and whether they can be back-dated to the time you could have claimed them from. Debt management becomes much more achievable when you claim the benefits you are entitled to, and you could get more than you anticipate. Don´t miss out on what is due to you. Three types of benefits include: Means-tested, which depends on your income. These types of benefits include: income support, tax benefit and child tax credit. Contributions-based benefits, which depend on the level of National Insurance Contributions you have made, including the state pension, and Universal Benefits, which are paid to everyone eligible, irrespective of your level of income. These benefits include child benefit.
If you have bad debt problems debts.org can help
You may be struggling on a low income or receiving income support or jobseeker´s allowance. Either way, you may be able to arrange a debts management plan through debts.org. Income support is the main benefit for people on low income with little or no savings and who do not have to sign on as being disabled, a carer or a lone parent of a child under 12 (under 10 from October, 2009).
Debts.org can help you arrange a debt management plan or an Independent Voluntary Arrangement with your creditors if you are having debt problems. Eligibility and rates of Income Support vary depending on your age and circumstances. Even if your income is too high to be eligible for Income Support, you may be entitled to Tax Credits. Working Tax Credit is aimed at families with or without children and Child Tax Credit is for families with at least one dependent child.
Labels: redununancy
Practical help with debt problems and debt management
posted by debts.org at 04:19
Practical help with debt problems and debt managementLike thousands of people in the UK, struggling to cope with debt problems is something we all dread. As much as we would like it to, debt will not go away on its own, and is a common problem. If you are worried about debt, the only way out of it is to face it head on, and take some practical steps to improving your finances. Draw up a list of how much you owe and to whom. Debts can grow quickly after unexpected events like loss of employment or divorce, and the sooner you address your debt problems, the sooner you will help yourself.
Debt management and how much do I owe?
Work out how much you owe by writing down everything in order of priority. High-priority debts are the ones which put your home at risk. Debt problems can include your mortgage or rent, council tax, tax bills, and gas and electricity bills. Lower priority debts include credit card debts, overdrafts, private loans from relatives and some hire purchase agreements. Any of these might become a priority debt if one of the creditors decides to take county court action (sheriff court in Scotland) or converts the debt from being unsecured to securing it against your home. Prioritise your debts and work out which debts are the most important to pay first. Don´t just pay the creditor who is putting most pressure on you, regardless of the debt involved. Credit card debts should not take priority over mortgage, rent or gas and electricity bills, for example. Make a note of all your income and expenditure, to work out how much you have left to pay your creditors.
Help your debt management problems by contacting your creditors
If, like many people in the UK, you are struggling to meet your mortgage payments or rent payments, contact your lender as quickly as possible. The sooner you do this, the lender will realise you are showing commitment to pay, and is more likely to arrange a reduced amount. You may be able to pay reduced monthly payments for a set amount of time, until you are back on your feet, or switch temporarily to an interest-only mortgage. You may also be able to extend the period of your loan, giving you more leeway and reduced payments. Most banks and building societies won´t rush in to repossessing homes if owners are having short-term difficulties, and will probably not take repossession action until the mortgage has not been paid for three months or more. The most important thing, if you think you are going to be unable to pay your mortgage, contact your lender immediately. Don´t leave it until you have missed three payments, and expect help. And never ignore letters or notifications from your lender. They are much more likely to help you if you show willing and commitment to finding a solution. Also remember, if you think you can walk away from a mortgage by posting the keys back to the vendor, you are wrong. You will still be responsible for the repayments until the property is sold, and you may be responsible for any shortfall between the price the house sells for and the amount you borrowed.
Deal directly with your landlord for rent arrears debt
If you have fallen behind with your monthly rent payments, speak directly to your landlord about paying off your rent arrears. The amount of time you can live in the property without an eviction notice from the landlord depends on your individual tenancy agreement, but the landlord is more likely to be helpful if you contact him as soon as possible. You may have to give notice, according to your tenancy agreement, and will be expected to pay this as well as any arrears that have accumulated. You may be entitled to housing benefit or local housing allowance to help with rent payments.
Draw up a debt management plan
You can draw up an informal arrangement or debt management plan to repay debts. Debts.org can help you negotiate payment arrangements with your creditors, and take the hassle away from you. Debt management plans can help you make affordable payments for non-priority debts such as credit cards debts.
Contact your creditors for a final settlement
If you know someone who will give you a lump sum to help pay some of your debts, contact your creditors and make a repayment offer, which may be accepted as full and final settlement, even if it is below the actual amount you owe. You need to explain to your creditors that this is a one-off payment offer.
Can bankruptcy solve serious debt problems?
Always take advice from a reputable company such as debts.org before filing for bankruptcy. Some recent press reports suggest bankruptcy is the easy way out, but it should only be seen as a last resort. Bankruptcy can badly affect your finances and your career. If you have absolutely no assets, bankruptcy may be the only option left open to you but check first if debts.org can help you with a debt management plan or an individual voluntary arrangement. Bankruptcy can end your career if you are a member of the Law Society, an estate agent, a stockbroker or a pub licensee, for example.
Individual voluntary arrangements (IVAs)
Individual voluntary arrangements are less-severe than bankruptcy, and have less implications in the future. An IVA is a legally-binding agreement between you and your creditors. Providing 75% of the creditors accept your offer, a formal proposal can be sought from the county court for a proposal to settle the debt within a fixed time period, normally of 5 years. Monthly payments must then be paid to an insolvency practitioner based on what you can afford. Debts.org can advise you on debt management plans and Independent Voluntary Arrangements.
An administration order to help your debt management problems
An administration order takes place when the court covers all of your outstanding debt. A monthly payment is made to the court which split it between your creditors, who in turn cannot take any action against you. The court will charge 10% for administration costs which is deducted from your monthly payments.
Seek advice from debts.org to find the best debt management options for you
For more detailed advice, contact www.debts.org, who will talk you through the best options to improve your financial situation and to help ease your debt problems.
Labels: bankruptcy, debt help, Debt Management Plan, IVA
Remortgage your home to relieve debt problems
posted by debts.org at 04:14
If you want to cut your monthly repayments, or if you are struggling with debt problems or credit card debt problems, you could remortgage your home. A remortgage is the process of moving your mortgage from one lender to another who may offer better terms and conditions, which will help you with your repayments. You don´t necessarily need to have a debt problem to consider re-mortgaging your home.The main reasons to consider re-mortgaging your property are:
• To reduce your monthly repayments by securing a cheaper mortgage
• To release some of the value built up in your property for other spending, such as home improvements or to alleviate debt problems
• To extend the term of your mortgage, which will mean cheaper monthly payments
• To reduce the mortgage term you could find a cheaper deal, keep the repayments the same, and pay off your mortgage in less time
Banks and building societies in the UK have tightened their criteria when it comes to mortgage lending and now deposits of 15-20% are typically demanded before they will consider a remortgage application. The higher your deposit, the more likely you are to find a cheaper interest rate. If your original mortgage was taken out with only a small deposit, your equity may not enable you to remortgage. In this instance, you may have to accept the lender´s standard variable rate (SVR). If you are able to switch your mortgage, important things to remember are:
If your original mortgage was taken out with a small or no deposit, you may find there is not enough (or any) equity for you to remortgage. This means you may have to put up with your lender's standard variable rate (SVR) until conditions improve. If you can switch, here's what you should do:
1. Re-mortgage paperwork
You should begin to think about remortgaging at least three months before your current deal finishes. Keep together your latest mortgage and bank statements for presentation to the prospective new lender. If your current deal is a tracker or variable rate deal, it could have reduced in the past few months, so check what you were paying before the reduction. This will help you to assess how much you can reasonably afford to pay when you re-mortgage. You can then compare your current mortgage repayments with the new re-mortgage offer.
2. How much will it cost me to re-mortgage?
Always check the small print of your current mortgage documents for details of early redemption charges (ERC). These charges can make re-mortgaging unviable. There may also be an exit fee which a lender may charge for closing your mortgage early. Contact your lender for a quote for paying off the mortgage plus any extra charges he may include. Any exit fee must correspond with the one in your mortgage agreement. If you have a fixed-rate deal, check whether any ERC are applicable.
3. Loan restrictions could cause more mortgage debt problems
Early redemption charges (ERC) do not necessarily finish when your fixed rate ends. You may need to pay the lender´s standard variable rate (SVR) for a set period after the initial deal ends. When interest rates are low, this can be advantageous to you, but as rates rise, being stuck on the same rate could prove more expensive for you in the future.
4. Find the best refinance mortgage for you
You need to take advice on the best refinance mortgage to suit your needs. You may want a fixed rate, a tracker or a variable rate mortgage. You could either speak to the lenders directly, or try a comparison website to find the re-mortgage you want. If you use a mortgage broker, some lenders will not offer the best deals, and charges can be higher. Brokers can however be particularly helpful if you only have a small deposit, are self-employed or have a bad credit record.
5. Work out the fees for a refinance mortgage
The best refinance mortgage deal for you may not come cheaply. You may be expected to pay legal fees, application/arrangement fees and a valuation fee. Fees can be added to the loan but bear in mind you will be paying interest on that amount for the remainder of the mortgage term. Some fee-free deals are available where lenders pay for or refund legal and valuation costs, but they can come with a higher interest rate. You need to weigh up all the pros and cons before agreeing to one of these re-mortgage deals to make sure you will be saving money in the long term. Beware of excessive charges and hidden extras such as high redemption penalties.
6. Ask your mortgage lender to match the new deal
Once you are aware of the terms and conditions of any new refinancing deal, go back to your current lender and see if he will match it or better it. You have nothing to lose, and you may be pleasantly surprised. If you decide to stay with your current lender you will save time and hassle.
7. Applying for a re-mortgage deal
Apply for the new mortgage deal before your existing special offer rate expires. You may want to approach several banks/building societies to see what they can offer you, giving you more chance to secure a deal that suits your requirements. You will need to complete an application form, provide proof of income and proof of identity. Different lenders may require additional documents.
8. Wait for re-mortgage information from your lender
Based on the details you submit to the new lender, they should send you an agreement in principle before arranging a survey of your home, to make sure they are happy to accept it as security against your loan. Once the survey has been undertaken and all fees paid, the new lender will send you a mortgage offer and he will deal directly with your current provider. Once the deal is complete, you should receive a completion statement. The process of refinancing your home should take no longer than a month, unless you are borrowing extra finance, then it could be longer.
Labels: debt problems, lender, re-mortgage, refinance, valuation fee
Assisted Voluntary Sale how it can help you
posted by debts.org at 04:06
If you are thinking of selling your house to resolve your debt problems, but are unsure about your property reaching its market value, you could benefit from an Assisted Voluntary Sale (an AVS). An AVS can give you ongoing support until your debts have been cleared. Benefits of an AVS include:• Your AVS advisor will manage all aspects of the property sale
• Continuing support helps you to become debt-free after your property is sold
• An AVS is a realistic alternative to repossession if you are unable to meet mortgage payments
• A better chance of achieving the true market value of your home
• Your mortgage lender will be informed about unsecured creditors throughout the AVS while aiming to reduce charges
• A dedicated case officer will support you throughout the process
• Full and final settlements will be negotiated with unsecured creditors
• Re-housing support is given and protected rental deposits, if required How an AVS scheme works
If you are suffering debt problems, debts.org can give advice about the sale of your property on your behalf. Independent estate agents can handle the conveyancing with fixed, transparent fees. This means you don't have to worry about the various steps involved in moving home. Alternatively, your sale will be handled by a dedicated case officer working on your behalf. You will be provided with two separate valuations of your property, which will be verified by comparing UK Land Registry prices to ensure a realistic market value.
You will also receive regular feedback about potential buyers and the number of viewings you get. Any offer made on your home will be thoroughly checked before being presented to you, to ensure you get the best price for your property. Once you accept the offer, we will arrange the completion of the sale at a date to suit both parties. We may also be able to persuade mortgage lenders and creditors to halt any enforcement activity during the AVS process and we will keep all parties informed of the process of the sale. You may have credit card debt problems, or general debt problems which can be helped by taking out an AVS.
The outcome of an AVS
The outcome of an Assisted Voluntary Sale will be different for every individual, depending on their circumstances. After selling your property, you may have sufficient funds to make a full and final settlement to creditors. If funds are not available to solve all of your debt problems, we will recommend a structured payment plan, such as a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA). Serious debt problems can be managed easily with a Debt Management Plan, and you will benefit from no up-front fees and one single monthly payment to your creditors, which we will arrange on your behalf. Mortgage repayments and re-mortgage arrangements
As house prices fall and banks and building societies tighten lending criteria, re-mortgaging has been drastically reduced. Home owners are withdrawing less equity from their homes, and the behaviour of borrowers has changed in the past two years since the housing market has declined. Prior to that, homeowners withdrew equity from homes increasing in value, which reached record levels in 2006. When the housing market is buoyant, re-mortgages can be quite easily arranged, but since the beginning of 2008, banks and building societies are more cautious of offering larger loans on property. With low interest rates reducing monthly mortgage payments drastically in many UK households, some borrowers are overpaying mortgages to reduce their debt.
Mortgage repayments are bad news for retailers
The move by many homeowners to overpay on their mortgages is bad news for retailers. With lower interest rates, many borrowers have decided to spend the equivalent of 3.5% of their salaries paying down their mortgage, and the fall in equity withdrawal has a negative effect on many businesses. Limited spending on the high street has seen many UK businesses close down in the past 18 months, and most people won´t start spending again until the economy and the housing market show positive signs of recovery. Problems with debt affects thousands of people in the UK every year. Pensioners could also suffer as housing equity withdrawal has been used in the past for reducing debts and topping up pensions. Reduced housing prices means that equity withdrawal is not a viable option, which in turn can severely hit the wealth of pensioners.
Labels: avs, banks, building societies, home owners, mortgage, repayments
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