Tuesday, 14 July 2009

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

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Wednesday, 8 July 2009

Practical help with debt problems and debt management

posted by debts.org at 04:19

Practical help with debt problems and debt management

Like 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

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Friday, 12 June 2009

10 Reasons to Choose a Debt Management Plan

posted by debts.org at 06:06

Debt Management Plans are something of a knight in shining armour for many people struggling under the burden of unmanageable debts. While a debt management plan isn’t the stuff of fairytales, it does offer many consumers the chance to get out of debt without ruining their credit rating.

Credit score damage limitation is just one reason to choose a debt management plan but there are 10 other attributes to consider.

1. Hassle free – setting up a debt plan is quick and straightforward

2. Flexible – when your circumstances change so too can your repayments

3. Not legally binding – there are no legal contracts to worry about

4. Reduce monthly payments – pay creditors what you can afford

5. Stop creditor harassment – joining a debt plan will give you breathing space

6. Handover all creditor correspondence – Debts.org handle all bills and letters

7. Less drastic than an IVA – you present less of a credit risk with a DMP

8. Cost effective – cheap to set up and all payments go towards your debt

9. Freeze interest rates/fees – save money by having your interest frozen

10. Debt experts handle negotiations – leave payment talks to our professionals.

Find out how a Debt Management Plan can help you or call us free on 0800 520 0923 . We look forward to hearing from you.

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Labels: Debt Management Plan, IVA

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