Debt Management Plan Advice UK

50 top tips about IVAs and Debt Management Plans

noreply@blogger.com (debts.org) — Wed, 19 Aug 2009 06:09:00 +0000

If you are suffering serious debt problems, and a debt management plan will not work for you, seek advice about an Individual Voluntary Arrangement (IVA) which can solve your long term debt problems forever.

1. What is an IVA?

An IVA is an Individual Voluntary Arrangement, and is formal agreement between the debtor and the creditors. An IVA has to be set up by a licensed insolvency practitioner, and will normally leave you debt-free after five years.

2. What are the IVA guidelines?

To consider an IVA you must be resident in England, Wales or Northern Ireland, and you must have debt problems. You must have a regular income, debts of over £15,000 (you can arrange a debt management plan if your debts are less), and you must be able to keep up the new repayments that will be arranged with your creditors.

3. Advantages of an IVA

An IVA is private, so family and friends don´t need to know about it. After five years you will be debt-free. An IVA acts as a safeguard against losing your home and you can write off up to 75% of your debt. The costs of an IVA are lower than a bankruptcy and you only pay back what you can afford.

4. Disadvantages of an IVA

An IVA normally lasts 5 years, whereas bankruptcy is only one year. The insolvency practitioner may request some equity release from your property. You must be able to pay at least £200 per month, and you must have at least 3 creditors and at least £15,000 of debt. An IVA is legally binding and it will show up on your credit report for up to 6 years.

5. How an IVA works for you and your creditors

Speak to a regulated debt solutions company to discuss your suitability for an IVA. The IVA must offer a higher return to creditors than could otherwise be expected if you were made bankrupt. You must make an honest declaration of your assets and anticipated future earnings. False declarations will result in the IVA application failing. Serious debt problems can be solved, but you have to be honest.

6. Who can apply for an IVA?

Anyone can apply for an IVA if they are suffering debt problems which can´t be covered by a debt management plan, and if their debts could result in the loss of their home if they are declared bankrupt. IVAs are particularly useful to people whose creditors will not accept a more informal debt management plan.

7. The IVA process

If you are interested in learning more about an IVA, contact a reputable debt solutions company and they will assess whether an IVA is right for you. An alternative can always be suggested such as a debt management plan or bankruptcy. You will then come to an agreement about how much you can pay monthly to each creditor. The debt advice company will then make an application to the court for an Interim Order, which means your creditors cannot take any action against you. If 75% of your creditors agree with the proposals then the agreement becomes legally binding.

8. Late IVA payments

If you think an IVA payment will be late for any reason, let the supervisor of the IVA know straight away. If you have a valid reason for late payment, you may be able to delay the payment, but don´t make a habit of it. If payments regularly late, you could end up facing bankruptcy.

9. Can I pay back my IVA early?

It is possible to pay off your IVA early, but you need agreement from the creditors. However they will base an early settlement payment on the actual amount outstanding and not on the reduced rate you would have paid back if the IVA continued to the full term agreed.

10. How can I arrange an early payment agreement?

In order to eliminate your debt early, your IVA supervisor will have to call a meeting of all the creditors, known as a variation meeting. Once agreement has been reached, a new financial statement will be drawn up. Big debt problems can reduce significantly if you find yourself in a new job or you receive funds from a house sale.

11. Why would I change the terms of my IVA?

Nobody has a crystal ball to look into the future. Your circumstances can change for the better or for the worse after you have agreed the terms and conditions of your IVA. You may get made redundant or you may find a new highly paid job, or be left some money. Contact the supervisor of your IVA to discuss the changes.

12. What happens if an IVA Variation Process is rejected

If an IVA Variation Process is rejected by creditors, you need to try and keep up the repayments on the original agreement. If you are struggling to do this, speak to the IVA supervisor to see if there is any alternative. If not, the IVA could fail.

13. What is an IVA Notice of Breach?

If you fail to abide by the terms and conditions of the original IVA agreement you signed, the IVA supervisor will issue a Notice of Breach to you. You will be advised to find a solution for the breach within one month, and you will be required to explain why the breach occurred. If you cannot sort out your debt, and remedy the breach, the IVA could be failed and bankruptcy proceedings could begin.

14. How does an IVA finish?

An IVA ends when you make the last payment as per the IVA agreement. Steps will be taken to ensure all payments have cleared before a certificate of completion can be issued, and is normally within 3 months of the last payment. Help for debt is closer than you think, and there is no need to feel isolated or alone with your debt problems.

15. What happens if I don´t include all my debts in the IVA?

Failure to include all of your unsecured debts in the IVA agreement, means you could still be chased for money when the IVA term is over. The creditor who is owed money has the right to take legal action against you so make sure you include all debts at the beginning of the IVA.

16. What is the difference between an IVA and a Debt Management Plan?

Unlike a debt management plan, an IVA is a formal agreement which arrange for the payment of dividends to your creditors (usually annually) and not monthly repayments. An IVA supervisor distributes the funds each year, taking his fees out. Once all the funds have been paid out of the IVA account, the account will be closed.

17. Does the money in an IVA account earn interest?

Interest is applied to the funds in the IVA account, and the extra money is paid over to the creditors to increase their dividends.

18. What paperwork do I get when the IVA completes?

A certificate of completion will be issued once the IVA has been completed and that will be a signal for the creditors to write off any outstanding debt. The credit reference agencies, the court service and the Department of Trade and Industry will also be informed.

19. Why would an IVA fail?

An IVA can fail for a wide range of reasons. A change of circumstances can mean you no longer have any surplus income or less income than you originally agreed to pay. The IVA supervisor is there to help you with any problems, and a Notice of Breach will only be issued if the IVA falls into arrears.

20. What is the effect of an IVA failing?

If an IVA falls into arrears and you can´t catch up with the payments, an Notice of Termination will be issued by the IVA Supervisor. This will formally bring the IVA to an end and the creditors can chase you for the remaining debt, which no longer carries the protection of the IVA.

21. Who pays for the IVA?

You and the creditors pay for an IVA, and the IVA costs are taken from the money paid by the person in debt, and reduced from the money sent to the creditors. If you are suffering big debt problems or you need UK debts help, make sure you contact a regulated debt solutions company for free debt help and advice.

22. Who contacts my creditors?

The debt management company or debt solutions company in the UK you appoint to arrange your IVA will speak directly to your creditors. Once the IVA has been approved your creditors will never bother you again, as long as the debt repayments are kept up.

23. How can I boost my credit rating after an IVA?

Make sure you pay your IVA repayments on time every time. Get to know what your credit rating is by applying for a free credit report, and check if for errors. Separate your credit file from anyone else´s in the family who may have the same name, and don´t apply for too much credit or your credit report will show footprints which can be seen by other creditors.

24. Why an IVA and not bankruptcy?

An IVA will stop all interest on the debt, and you can usually keep your property. You will be completely out of debt in 5 years and you keep control of your assets. You will not be hampered by restrictions when you want to progress your career and an IVA is easier on your credit rating than bankruptcy. It is also easier to open a current bank account following an IVA.

25. An IVA or debt consolidation

You can seek free advice about IVA, bankruptcy and debt consolidation from a debt advice company in the UK. Debt consolidation loans mean that all your debts will be lumped together and you will just pay back one amount each month. This type of loan may work better for you than an IVA, as with an IVA your assets are scrutinised. Also, employment status is not affected at all with a debt consolidation plan. Seek free debt advice to help you decide what is best for you, and how you can achieve a debt-free future.

26. Beware misleading IVA adverts

Often advertised as a popular alternative to bankruptcy, and IVA is never the less a serious arrangement. Many IVA adverts conveniently forget to mention that if an IVA fails you could still face bankruptcy, your credit rating will be affected for up to 6 years, and you could face dire consequences if the IVA fails. They may also tell you that 95% of your debt can be written off with an IVA whereas 60-70% is much more likely.

27. Why do so many firms advertise IVAs?

Particularly since the credit crunch and recession in the UK, firms offering IVAs seem to have popped up all over the place. If you have serious debt problems, and you are promised that 75% of your debts will be written off, the idea of an IVA may be appealing. But make sure you only use regulated companies to deal with your debt problems in the UK.

28. What to do before you start an IVA

Make sure you fully understand the terms and conditions of the IVA and be aware that you will have to budget for 60 months to make sure you don´t miss any payments. If you own your own home, but are suffering big debt problems, you may need to sell or remortgage your home in order to make the monthly payments. Read about any disadvantages of IVAs which may affect you and your family.

29. Will the creditors contact me during the IVA period?

Legally creditors can still contact you directly but they are more likely to contact the IVA insolvency practitioner if they need to. Creditors should stop all contact with you directly, and if you receive any mail from them you should be able to forward it on to the insolvency practitioner.

30. How do I know if a debt management plan is right for me?

A debt management plan (DMP) is suitable for anyone who has unsecured debts that they cannot repay, and also for people who have lots of equity in their homes but who don´t want to take a second mortgage. A DMP can also be ideal to help solve your debt problems if the debt is less than £12,000.

31. Advantages of a debt management plan

Your debt management company will deal with your creditors on your behalf, and you only make one payment each month which is distributed to your creditors for you. All interest and charges are normally stopped and you only pay what you can afford to. A DMP is an informal agreement which can be changed if you and your creditors are in agreement.

32. Disadvantages of a debt management plan

Debt management plans only deal with unsecured loans such as credit cards and unsecured bank loans. You may still have to deal with priority debts yourself. Debt management plans are not legally enforceable, but if you have high debts and low repayments, you could end up paying off your creditors for years to come, when the aim is to get debt free as soon as possible.

33. Is a debt management plan a loan?

A debt management plan is not a loan, it simply places your debts with a third party so you don´t have to deal with your creditors, and reduces your monthly payments. There are no credit checks to pass in order for you to clear debts, and you need to beware of any unregulated loans.

34. How long will my debt management plan last?

The length of the debt management plan depends on how much debt you are in. If you are worried about debt problems, contact your creditors and ask them if they can help you. Lenders are much more likely to be sympathetic if you approach them first.

35. How much does a debt management plan cost?

It depends which debt management company you talk to. Some will charge a one off fee at the beginning of the debt management plan, and some will be paid commission from your creditors.

36. Advantages of using a debt management company

Although you can try to arrange a debt management plan yourself, your creditors are much more likely to listen to a regulated debt advice company who will present your case clearly and professionally.

37. How much money actually goes to my creditors

With a debt management plan, you only pay what you can afford. Take away your outgoings from your income and see what is left. A percentage of this will probably go to the debt advice company and the rest to your creditors in monthly payments. Never borrow more money to pay off your debts, unless you are advised to take a debt consolidation loan.

38. How do I make debt management plan payments?

You can pay your debt management plan payments by standing order from your account or you can pay by cheque or paying-in slip at the bank or building society.

39. Can I stop a debt management plan?

You can stop or start a debt management plan but you must inform your debt management company who will, in turn inform your creditors.

40. Do my creditors have to accept a debt management plan?

No, creditors are not obliged to agree with the terms and conditions of any proposed debt management plan, but they usually will if it is to their advantage, and they will be getting some of the overall debt paid back. They are more likely to agree to it when they are approached by a professional debt advice company in the UK than from an individual.

41. How will a debt management plan affect my credit rating?

If you are on a debt management plan it is likely to be noted on your credit report. This does not necessarily stop you getting more credit, but your lenders may have made it a condition when they agreed to the DMP that you don´t apply for any more credit until the DMP is paid off.

42. Will I be sent a monthly report if I am on a debt management plan?

A monthly report should be arranged for you through your debt management company, to show the payments, amount still owing, etc., If you are suffering debt problems and you need debt help, contact a regulated debt solutions company in the UK today.

43. Can I get additional debt help and advice in the UK?

If you are working your way through a debt management plan, feel free to contact your debt counsellor in the UK for any additional support, debt help or debt advice which you may need. The debt counsellor will be only too happy to provide you with free debt advice.

44. Can I apply for a credit card while I am on a debt management plan?

Unless your creditors have stated otherwise, there is nothing legally to stop you applying for a credit card while you are on a debt management plan but think hard about the consequences first. Why take action to clear your debts, only to get yourself in more serious debt with a credit card? Look upon the debt management plan as being the first step to a debt-free future for you and your family.

45. Do I have to keep paying interest and bank charges?

Once the debt management plan is set up, and your debt advice company has spoken to your creditors, interest and bank charges should stop, depending on your personal debt situation.

46. Can I put include my secure loans in a debt management plan?

Loans which are secured against something, such as a mortgage or a car loan cannot be included in a debt management plan. If you are falling behind with secure loan repayments contact a debt help company in the UK for free advice and guidance, and never ignore letters from your creditors.

47. Can I lose my house if I am already on a debt management plan?

If you are already on a debt management plan but are suffering mortgage arrears or more serious debt problems as well, you need to contact your mortgage lender as soon as possible to discuss how to eliminate your debts.

48. What debts can I include in a debt management plan?

You can include unsecured debts in a debt management plan including student loans, store card debts, credit card debts, personal loans and overdrafts. Secured loans such as mortgages and car loans cannot be included in a debt management plan.

49. Only use regulated debt help companies

If you are considering an IVA, bankruptcy or a debt management plan, digest all the information from a regulated debt solutions company, and don´t be fobbed off with a plan that does not suit you. Free debt advice in the UK is readily available and if you are suffering big debt problems, you can get help today.

50. Don´t bury your head in the sand

If you are starting to experience debt problems which are not yet serious debt problems, contact a debt counsellor or a debt advice company who can help keep your debts to a minimum and give you free debt advice and help. Never ignore letters from your creditors, and seek debt help as soon as you can. There is no longer any stigma attached to being in debt, and you should never feel awkward or embarrassed to call a debt advice company. Remember, they have heard it all before, and they are in the best position to give you free advice.

Top 10 hints for house buyers

noreply@blogger.com (debts.org) — Wed, 05 Aug 2009 06:48:00 +0000

1. Shop around to avoid future

Take your time to look around before arranging a mortgage, and don´t feel as though you are wasting anyone´s time. There are still around 10 potential buyers for every new property on the market and it pays to be cautious and avoid any debt problems later on, when you realise you are paying far too much for your mortgage.

2. The low cost of borrowing

The low cost of borrowing and the devaluation of the pound has been one factor behind the recent improvement in the property market. This has resulted in a lot more foreign investment. Don´t over borrow, even if you think you can afford it at the moment. Buyers can suffer a lot of unnecessary debt problems by biting off more than they can chew so be cautious, however the market is performing.

3. Improvement but not recovery

The housing market may be showing signs of recovery, but complete recovery is some way off. Be cautious when investing in property and always take professional, legal advice before signing on the dotted line. You may suffer debt problems or even need to arrange a debt management plan if you credit card debts or store card debts, so think carefully about your whole financial situation before borrowing more cash.

4. Low sales figures and falling prices

The optimistic viewpoint shared among most estate agents, which is obviously the one they want you to hear, is not shared by everyone. Some consultancies state that low sales figures and falling prices in certain areas of the country paints a more accurate picture of what is happening outside London, so don´t be tempted to borrow more money than you can afford, only to find yourself saddled with debt a few years down the line.

5. Bargains for buyers

Buyers can undoubtedly pick up bargains if they shop around, but getting a mortgage is another matter altogether. Find the best mortgage deal for you before choosing the house you want, avoiding disappointment later. If you are suffering debt problems or would like information about a debt management plan, or have mortgage arrears, you can contact a free debt advisory company in the UK.

6. Can I get a mortgage?

Getting a mortgage is harder now than ever, and you can virtually forget it unless you have between 15 and 20% deposit to put down and a top notch credit rating. If you can find between 20 and 40% deposit, you are in a great position to bag a bargain. Even if you do have a sizeable deposit, don´t overspend, as you will still have to make the repayments and could end up seeking debt advice rather than mortgage advice.

7. Property auctions and house repossessions

If you have some spare cash or perhaps have inherited a sum of money, visit a property auction. Prices at auction for houses is normally about 30% lower than at the estate agents and properties sold at auction are often repossessed houses. Prices are so much lower because banks want a quick sale which could benefit you. But be careful. Don´t snap up what appears to be a bargain but may need thousands spending on it that you don´t have. Irresponsible buying at auction can result in debt, house repossession and even bankruptcy.

8. Economic crisis and property

The economic crisis has hit the property market hard, and new builds have been very badly affected. Investors were the hardest hit who hoped to realise a quick profit on their properties but instead saw a quick loss. Don´t buy off-plan unless you are 100% certain of a quick turn around and a quick profit. Off plan investors have lost millions in the past two years, and are now suffering major debt problems and house repossessions.

9. New homes discount

If you are considering buying a new property, you can get some bargains which have been taken back from investors who could not keep up their mortgage payments. You may be able to find a new build for up to 15% less than the original asking price but, again, don´t be tempted if it is out of your budget. Thousands of debt management plans every year are arranged for people who borrow more than they can afford and end up with credit card debts and store card debts on the top of mortgage debts

10.Shared ownership

Shared ownership schemes are now available from housing associations, which have bought properties from developers, and are offering them to first time buyers. Take your time to look into the terms and conditions of shared ownership before committing yourself, but it might be the perfect way to get your foot on the property ladder.If you are suffering debt problems during the credit crunch, debts.org can help you arrange a debt management plan, an individual voluntary arrangement, bankruptcy or we can help you reclaim unfair bank charges or early mortgage completion fees or mis-sold payment protection insurance in any city in the UK, including Liverpool, Leeds, London, Sheffield, Bristol, Bradford, Hull, Nottingham, Wolverhampton, Sunderland, Eastbourne, St Helens, Crawley, Oldham, Blackburn, Sutton Coldfield, Eastbourne, Northampton, Mansfield, Portsmouth, Reading, Luton, Preston, Milton Keynes, Sunderland, Norwich, Walsall, Swindon, Huddersfield or Stoke on Trent. Call us free on 0844 277 7999 or fill in the online claim form.

Top 10 ways to ride the recession

noreply@blogger.com (debts.org) — Wed, 05 Aug 2009 06:40:00 +0000

1. Pay off your debts

If you have any spare cash, use it to pay off your debts. Money saved on your mortgage for example could be used to pay off credit card debts or store card debts or a bank loan.

2. Increase your mortgage payments

If you are benefitting from an interest cut, then why not put your savings towards your mortgage, which can help you avoid any unnecessary or unexpected debt in the future. You will own your own home quicker and you will stand a better chance of refinancing to a better mortgage rate.

3. Open a savings account

Any spare cash you have from interest rate cuts which affect your mortgage can be put into a high interest savings account. Treat this as your ´rainy day´ money and you could earn as much as 10% interest on your money per year. Shop around for the best deals which will see you save money, and not have to worry about debt problems in the future.

4. Invest in the stock market

Take advice and consider investing in the stock market. The best way to make the most of a falling market is to make regular modest investments which won´t break the bank and could include equities and bonds. You could invest your mortgage interest cut saving on the stock market or in premium bonds. Alternatively, avoid debt and debt management solutions by investing your money in an ISA.

5. Payment protection insurance (PPI)

You could invest in payment protection insurance on your existing mortgage or bank loan, which would give you some breathing space if you are made redundant or suffer an accident or injury at work. PPI will normally pay for 12 months of your mortgage if unexpected events leave you without an income, but make sure you read the small print first. Thousands of PPIs have been mis-sold over the past few years, and you can now reclaim money spend on these schemes through reputable and regulated debt advice companies.

6. Invest in your children

If your child was born after 2002, they are automatically given a non-refundable Government trust fund voucher which they can access when they are 18. Help to make their future easier by opening or adding to a child trust fund which is tax-free. The maximum amount which can be paid in to a child trust fund is £100 per month, but this can accumulate to more than £35,000 in the next 18 years. Don´t overstretch yourself if considering a child trust fund or you could end up in debt yourself, but start by paying a modest amount in each month.

7. Pension fund investment to avoid debt

Invest in a pension fund if you have any spare cash, and you will reap the rewards in later life. There are plenty of pension options available to you so take your time to find the right one for you. Beware of investments that carry a lot of risk, or you could find yourself experiencing debt problems and seeking debt advice or even arranging a debt management plan.

8. Consider a health cash plan

Health cash plans can reduce the amount you pay for health treatments. Similar to health insurance policies, health cash plans are less expensive and can be used against medical fees and expenses for opticians, dentists and doctors. With a cash plan scheme, you pay the initial expense of treatment and then claim it back from your cash plan provider.

9. Private school fees

If you are planning to send your children to private school, you can start to save the money early in a tax-free insurance policy until your children reach school age. You may also be able to pay fees early at the current rate which will assure your child´s place at private school in a few years time. Millions of people in the UK are suffering debt problems and seek free debt advice and help every year from free debt solutions companies who can arrange debt management plans, independent voluntary arrangements and even bankruptcy.

10. Shop sensibly to avoid further debt

The Government is hoping, by cutting interest rates that the general population will be out there shopping in the high street again, and spending the money they have saved on the mortgage. If you already have credit card debts or bank loan debts, give the plastic a break and spend some available cash instead on the basics. Alternatively, use the extra money to pay off some of your credit card debts to make life easier.

Debts.org offers people with debt problems a way out. Offering free advice and guidance about debt management plans, Individual Voluntary Arrangements, bankruptcy, reclaiming unfair bank charges, reclaiming mis-sold payment protection scheme cash or simply offering a shoulder to cry on, debts.org helps people in debt in every major town and city in the UK, including Liverpool, London, Leeds, Swindon, Poole, Blackpool, Burnley, Liverpool, Ipswich, Telford, York, West Bromwich, Peterborough, Stockport, Stoke, Brighton, Gloucester, Watford, Rotherham, Sheffield, Cambridge, York, Nottingham, Leicester, Manchester, Bristol and Birmingham. Call us free for free advice on 0844 277 7999 or fill in the online form.

75 Mortgage Terms In Plain English

noreply@blogger.com (debts.org) — Wed, 05 Aug 2009 06:13:00 +0000

If you are looking to arrange a mortgage, unless you do your homework first, it can be a confusing experience. There are so many mortgage deals available on the market that you should seek advice from a mortgage broker who will advise and guide you. Mortgage terms used by estate agents, banks, building societies and solicitors are easier to understand when translated into plain English. If you are suffering debt problems before you apply for a mortgage, seek debt advice from a regulated debt solutions company in the UK. When arranging a mortgage, be aware, ask questions and don´t sign anything which may make your debt problems worse:

1. Adverse Credit can include bankruptcy

This is the term used about a borrower who has had bad credit in the past including a bad payment record, bankruptcy or a County Court Judgement against him (CCJ).

2. Annual Percentage Rate (APR) can get you into serious debt

The APR relates to the cost of a loan, including interest charges, which is shown as a percentage rate. APR is a standard calculation in the mortgage industry, and enables easy comparisons of mortgages from all lenders. Avoid debt problems by thoroughly checking APR details before applying for credit, a mortgage, store cards or credit cards, which can plunge you into serious debt problems.

3. Assignment

An instrument transferring the secured rights of a mortgage to another party by the original party which possessed those rights.

4. Outstanding mortgage debt balance

The amount of mortgage loan still outstanding at any given time.

5. Understand the Bank of England Base Rate to stay out of mortgage debt

The Bank of England Base Rate is set each month, and banks and building societies use this rate to set the interest rates they pay on deposits or charge on debts. Make sure you understand how the base rate works before applying for a mortgage or you could end up with mortgage debt or serious debt problems in the future.

6. Beware bridging loans and bridging finance

Beware bridging loans if you are already suffering debt problems and seek debt advice before applying for a bridging loan. A bridging loan is a temporary loan made to people who want to buy another property, but are yet to sell theirs. You can end up with serious debt problems if you take out a bridging loan to buy a new property and then yours fails to sell.

7. Insurance for buildings to avoid debt problems

Always make sure your house is insured or you could face serious debt problems if your house is damaged in a fire, a storm or a flood.

8. The Building Society

Different to a bank, the building society is an institution which is owned by its investors, and provides a wide range of mortgages and savings schemes. If you borrow more money than you can afford to pay back from a building society by means of a mortgage or a home loan, you could end up with bad debts, and have to seek debt advice in the UK.

9. Cashback mortgage

You may be offered a lump sum or a certain percentage of your mortgage in cash when you complete your mortgage. Be aware that this may be paid two to three weeks after your mortgage is completed, which means you may not be able to use it for buying another house.

10. Charge or debt secured against property

A charge is an interest in the ownership of a property, and usually translates as a mortgage or another debt secured against the property. If you secure any debt against your property, exercise extreme caution. Most people need a mortgage in order to buy a house, but any other debt secured against your property could leave you homeless if you default on your repayments.

11. Completion on a property

Completion on a property takes place when the ownership is transferred between the seller and the buyer, the seller moves out and the buyer moves in. Never rush completion, and make sure everything is in order and legally binding before signing any contract, or you could end up with serious debt problems or mortgage problems in the future.

12. Conclusion of Missives in Scotland

This is the final part of the purchase process in Scotland. Beware hasty conclusion missives or you could face debt problems or even have to seek debt advice about debt management plans and IVAs in the future.

13. Contents Insurance to avoid debt

Contents Insurance is the insurance you should take out against accidental damage or theft of the contents of your home, including furniture, electrical appliances and furnishings. Home insurance or contents insurance is not obligatory but you are strongly advised to take it out, or you could face serious debt problems if your home is robbed.

14. Property contract agreement

The contract is the document which describes the agreement between the seller and buyer, and how the property will change hands. Read any contract carefully or it could result in you suffering debt problems and seeking debt help in Liverpool, London, Manchester, Plymouth, Northampton, Portsmouth, Birmingham, Walsall, West Bromwich, Nottingham, Mansfield, Bristol or any city in the UK.

15. Conveyancing

Conveyancing is the transfer of a property from one party to another and is usually managed by a solicitor or licensed conveyancer, who will make sure the process runs smoothly. Shop around before hiring a solicitor to do your conveyancing and agree a price before the sale goes through, otherwise you may end up out of pocket and starting life in your new house with serious debt problems.

16. Covenant in the title deeds

A covenant in the title deeds is a condition which the buyer must comply with. A restrictive covenant is one which does not allow the new owner to do something related to the property. Ensure you are aware of any covenants or restrictions in your title deeds before you sign for the house, or you could end up with expensive court costs and resulting mortgage debt in the future.

17. Credit scoring and home loans

Credit scoring will allow the lenders to decide whether to grant you a mortgage or not. You will be asked a range of questions regarding your finances and your answers will be scored by your lender. Depending on the score, your application for mortgage will be accepted or declined. Always answer honestly. If you don´t tell the truth and are found out, not only will you be refused a mortgage this time but it could affect any chances of getting credit in the future, and result in serious debt.

18. Debt Consolidation to ease debt problems

Debt consolidation is the process of combining all of your outstanding debts in to one loan. You can combine credit card debts, store card debts, bank loans and car loans into one lump sum which means you will only have to pay one amount each month. Be careful when considering a debt consolidation loan as the interest rates could plunge you further in to debt than ever.

19. Debts and deeds

Deeds are legal documents that show who the legal owner is of a property or piece of land. Make sure the deeds are in order before buying a property, or you could end up with serious property debt problems later on, or mortgage debt problems.

20. Deposit to secure a loan or mortgage

A deposit is the amount of money paid by a prospective buyer to secure the mortgage loan after exchange of contracts. This deposit is normally 5 or ten percent of the purchase price. Make sure all paperwork is in order before paying any deposit, and avoid seeking mortgage debt advice or even house repossession in the future.

21. Direct Debit to avoid debt

A direct debit is an instruction from a customer to the bank or building society to make regular payments direct from their account. This can save money in the long run and make payments such as mortgage or bank loans easier to handle, but beware unscrupulous companies or lenders who could take more than they are owed and plunge you into serious debt.

22. Disbursements and legal work

Disbursements are various costs for carrying out legal work connected with the remortgaging of your home. If you are considering remortgaging your home, take your time to shop around for the best mortgage deals and offers to suit you, or you could end up paying more than you need to and having to find debt advice in the UK.

23. Discount Mortgages and debts

Discount mortgages sound like a great idea at the outset but don´t let them lull you into a false sense of security. Your mortgage lender may offer you reduced monthly mortgage repayments for two or three years, but budget wisely for when the mortgage increases, and save as much money as you can while the mortgage payments are reduced or you could face massive debt problems in the future.

24. Early repayment charges can mean debt problems

Many banks and building societies charge customers for paying off their mortgages early. If mortgage redemption fees or early repayment of mortgage fees are deemed to be unfair, which many of them are, you can claim them back through a regulated debt management company who will give you free debt advice and guidance in the UK.

25. Easement

Easement is a legal right over land which could cause disputes or even debt problems to buyers in the future if they are not aware of it. It may be a legal right of way or access to an area of land.

26. Negative or positive Equity

Equity is the difference between the value of your property and the amount of mortgage or bank loan you have left to pay on it. Equity release is the release of that money, but be very cautious if considering an equity release scheme for all or some of your equity as it could result in you or your family losing their home or their inheritance.

27. Exchange of Contracts not an exchange of debts

An exchange of contracts is when two parties sign their copies of the contract to exchange the property. These contracts are exchanged by legal representatives from both sides and are legally binding. The buyer normally pays a deposit at this point and the completion date is agreed. Never exchange contracts without proper legal representation or you could face house repossession, bankruptcy or serious debt problems in the future.

28. Financial Services Authority (FSA) help you avoid debt

The FSA is a regulatory authority for the financial industry in the UK, and all lenders and mortgage intermediaries must be authorised and regulated by them. Authorities such as the FSA safeguard your interests when dealing with mortgage firms, banks or building societies, and help to prevent debt problems which can result from dealings with unscrupulous lenders.

29. Fixed rate mortgage and debt advice

If you have been trying to pay off a fixed rate mortgage, which is a mortgage where the interest payment is fixed for a specific time, seek the advice of a professional debt solutions company who can guide you in the right direction to a debt free future. Debt management plans and Individual Voluntary Arrangements can be arranged on your behalf to clear your debts completely if you are having problems with credit card debt, store card debt or bank loan debts. A fixed rate mortgage will normally revert back to a variable rate after an agreed time limit.

30. Fixtures and fittings

Fixtures and fittings are the non-structural items included in the property when you buy it. Make sure these are all clearly listed in an inventory, or you may face having to re-furnish the house from scratch which could cause you some bad debt problems in the UK.

31. Flexible Mortgage can be a debt solution

If you are struggling to keep up with your repayments on a fixed rate mortgage, or if you are applying for your first mortgage, avoid debts and seeking debt help and advice by discussing a flexible mortgage with your lender. A flexible mortgage will enable you to overpay towards the mortgage when you are better off, and pay less when things are tough. You may even be able to take a payment holiday at some stage if you have overpaid.

32. Freehold property or freehold land

If you own freehold property or freehold land, you own absolute ownership of the land the property is on.

33. Full structural survey to avoid debt problems

A full structural survey will help you decide whether to buy the property or not. The survey will pay particular attention to the main features of the property including walls, the roof, the foundations, plumbing and wiring, which can help you avoid property debt problems or mortgage debt problems , or even house repossession in the future.

34. Further mortgage advance

An additional loan on top of your existing mortgage is known as a further advance, and can be taken once your original mortgage has completed. But be careful and don´t borrow more than you can afford as a further advance will also be secured against your property.

35. Gazumping on a property

Gazumping is when a seller pulls out of a sale with you after accepting a higher offer from someone else. If you make an offer for a property which is verbally accepted, try to move things along quickly to get a completion date and avoid getting gazumped.

36. Gazundering

Hmmm a new one on me. Gazundering, apparently, is the term given to the tactic of a buyer offering less than the agreed price for a property just before exchange of contracts. If you are selling a house, refuse any reduced offer so close to completion, as the buyer probably had it planned from day one and you can find yourself with serious debt problems if you agree to a low price under pressure.

37. Ground rent for property

Ground rent is the annual fee which a freeholder charges a leaseholder, and is also known as community fees . When you buy a leasehold property make sure you understand exactly how much you will be expected to pay the freeholder each year, what you will get for your money, and at what percentage rate the fee will increase annually.

38. Guarantor for a mortgage

A guarantor will guarantee to pay your mortgage if you default on any payments. You may be asked to provide details of a guarantor before you are offered a mortgage. Guarantors are not always easy to find, as they are responsible for your mortgage debt if you cannot pay for any reason.

39. Higher lending property charge

A higher lending property charge is payable if you borrow more than 90% of the value or purchase price of your property. These rates vary and it is worth shopping around to find the best deal to suit you and to make sure you will not be left struggling with debt problems a few years after signing for your mortgage.

40. Home Buyer´s Report

A home buyer´s report is a survey which is offered by the mortgage lender and is prepared by the company´s own surveyor. This report will take into consideration the general structural condition of the property but is not an in depth survey. If you find you have borrowed too much and are struggling with mortgage debt or mortgage arrears, you can arrange to pay off your credit card debts or store card debts with the help of a debt management plan which will reduce your monthly outgoings.

41. Home Enviro-search

A home enviro-search involves a detailed history of every UK region with regard to floods, subsidence and land contamination. This will help you to assess the area you want to buy property in. Imagine finding your dream property only to be flooded out 6 months after buying. Avoid major debt in the future and carry out an enviro-search before buying your property.

42. Initial disclosure document

An initial disclosure document is a paper designed to help you to compare the services provided and the fees charged by lenders and intermediaries.

43. Interest only mortgage and debt problems

An interest-only mortgage means you will only pay the interest off the amount borrowed for a set amount of time. You may have arranged to pay interest only for the first three years for example, but watch out, you may be in for a shock when the repayments shoot up after the agreed period of interest only. You may want to put some money away to pay off the remainder of the loan when the interest only period finishes. Seek professional advice before accepting mortgage conditions and if you are already in debt, or suffering serious debt problems, contact a professional debt management company who can give you free debt advice in the UK.

44. Joint Mortgage

A joint mortgage is one with more than one name on the contract.

45. Joint Tenants

Joint tenants is a term for ownership by couples which means that when one dies, the property passes automatically to the living partner. A similar term is Tenancy in Common. If you are suffering debt problems after the death of a partner, or mortgage arrears in London, Luton, Liverpool, Oldham, Blackpool, Manchester, Carlisle, Norwich, Bournemouth, Cardiff, Mansfield, Burnley, Huddersfield, Swindon or any UK city, you can get free debt help and advice from a professional debt solutions company.

46. Key Facts

Illustration (KFI) and debt adviceA KFI (that´s a KFI not a KFC), contains key mortgage information which will help you to compare the costs and features of different mortgages to find the right one for you. Take some time to compare mortgage terms and conditions thoroughly as this can save you a lot of hassle in the future and will save you having to seek debt advice and debt help in the UK.

47. Land Certificate

A land certificate proves ownership of a property and is supplied from the land registry.

48. Land Registry

The Land Registry is a government organisation which holds records of all registered properties in England and Wales.

49. Land Registry Fee

and debt help in the UKA land registry fee is one that is paid to register your details if you have either bought a property or changed your mortgage lender. If you are suffering debt problems in the UK after falling behind with your mortgage payments or you have mortgage arrears, you can talk to a trained debt counsellor free of charge, who will give you free advice and guidance.

50. Life Assurance to avoid debt

Life assurance is an insurance that pays out on the death of the policy holder and offers some debt relief for your family. Debt help and debt advice in the UK is free with many regulated debt help companies, and you should not be embarrassed to ask for debt advice if you are suffering debt problems after the death of a loved one, redundancy or an accident or illness.

51. Local Authority Search

to avoid debt problemsA local authority search will uncover any major road building or planning permissions that will take place in the area you want to buy a property and you can decide what impact this could have on your house.

52. Loan to Value

(LTV) and property valueAn LTV is the amount of mortgage expressed as a percentage of the true value of that property. If your mortgage amount is £90,000 and your property is valued at £100,000, then your loan to value is 90%.

53. Calculate monthly interest

This is the method of calculating mortgage interest on a monthly basis. If you are falling behind with your mortgage repayments or have mortgage arrears, you should seek free debt help, advice or counselling. You may be able to arrange a debt management plan to pay off credit card debts or store card debts, which will free more money up for your mortgage.

54. Mortgage deed and debt advice in the UK

A mortgage deed is a legal document which relates to the mortgage lender´s interest in the property, and outlines their legal rights regarding the property. Ensure you seek proper legal advice when buying or selling a house and don´t be duped into signing something you are confused about or you could end up having to seek debt advice in the UK or borrowing more money than you can afford to put things right in the future.

55. A mortgage offer from the lender

A mortgage offer is the amount of money the lender offers to you in the form of a mortgage. Never borrow more money for a mortgage than you can reasonably afford to pay back or you will suffer serious debt problems and have to seek debt help and debt advice, or even have to arrange a debt management plan, an individual voluntary arrangement or bankruptcy.

56. Payment Protection Insurance

can be mis-soldPayment protection insurance is designed to pay your monthly mortgage payments for a set amount of time if you find yourself unable to work after redundancy, accident or illness. However, thousands of payment protection insurances (PPIs) have been mis-sold over the years, and if you think you have a case to reclaim money from a mis-sold PPI, contact a debt help company who can help get your money back.

57. Mortgage Term and mortgage help

The mortgage term is the amount of time agreed with the bank or building society for the mortgage to be repaid. This is typically 25 years but can be shorter or longer, depending on your mortgage agreement. Try to pay off your mortgage as quickly as you can, and avoid debt problems or ongoing mortgage payments for more years than you need.

58. Negative Equity on your home

Negative equity can equal debt problems. When the sum remaining on your mortgage is higher than the current value of your house on the market, this is called negative equity.

59. The NHBC and ten year warranty

The National Building Council offers a warranty scheme for new properties which means that if any major structural defects occur within ten years, you are covered for repair.

60. Ombudsman and housing disputes

An ombudsman is an independent professional body which helps settle differences and disputes between consumers and companies, such as solicitors, insurance companies and estate agents.

61. Planning Permission

for new buildingThis is the permission you need from the local council or planning authority before building on to an existing property or changing the use of the building. Never attempt to make major alterations or add extensions to a property without seeking planning permission as it could result in you having to pay thousands in fines or ripping down the building altogether which could plunge you into serious debt.

62. Premium payment

A premium is the payment you make regularly, monthly or every year to an insurer for an insurance policy, and could refer to home insurance or contents insurance.

63. Private Sale of a property

The private sale of a property is one which does not involve an estate agent. If you choose to sell your property without the help of an agent, you can save a lot of money in commission fees, but take professional advice before going ahead and always use a solicitor before exchanging any paperwork or you could end up facing serious debt problems as a result of your DIY house sale.

64. A product mortgage fee

A product mortgage fee can be charged when you first apply for a mortgage. This fee reserves the mortgage and covers administration costs. It is also known as an arrangement fee, but be sure to shop around and find the best deal. If you pay out large amounts for mortgage arrangement and solicitors, you could leave yourself facing mortgage debt and mortgage arrears in the future.

65. Remortgage your house to avoid debt

One way of freeing up some capital is to remortgage your house. This involves the process of moving your mortgage from one lender to another, and can incur fees, so to avoid debt, read the terms and conditions carefully before remortgaging.

66. Sole agency agreement

A sole agency agreement means that you will only have one estate agent to act on your behalf when selling your property. This can prove tricky if other agents approach you for viewings so weigh up all your options before signing a sole agency agreement to avoid having to refuse viewings and possibly create debt problems if the property doesn´t sell as quickly as expected.

67. Stamp Duty explained

Stamp duty is a tax which must be paid on a property at the time of completion when you buy it. When working out a budget and expected outgoings after buying a property, remember to include stamp duty, solicitors fees and any extras you may incur before completing on the property so you can avoid seeking debt advice in the UK.

68. Subject to Contract

Subject to contract means that an agreement is not yet legally-binding, and can still be changed. Take the advice of a solicitor for any property transactions as there may be confusing issues in the deeds, which could leave you seeking debt solutions later on.

69. Title in the deeds

The title is the record of ownership of a property and the evidence of which is recorded in the title deeds.

70. Total amount payable

This refers to the total cost of mortgage payable.

71. Tracker Mortgages can help you avoid debt

Tracker mortgages follow movements in the Bank of England base rate, and the interest is set at a level just above or below the base rate. Your payments will fall into line with the base rate, going up when the base rate does, and going down when it falls. Tracker rates can be arranged for a set amount of time, usually 5 years.

72. Equity Transfer

A transfer of equity is what happens when a person or persons are added to or removed from a mortgage agreement. Always seek professional advice if you are considering equity transfer, or you could suffer serious debt problems.

73. Under Offer

If a property is under offer, it means the seller has provisionally accepted the buyers offer. However, if you are buying, don´t take this as meaning the property is definitely yours until completion.

74. Valuation of a property

A property valuation is carried out for mortgage purposes, usually by the bank or lender to make sure it is worth the amount requested for mortgage. If the property values up, don´t be tempted to borrow more than you need as you could get yourself in to serious debt a few years down the line if your circumstances change.

75. Valuation Fee

Unless you have a special arrangement with the lender, you will be charged a valuation fee before the bank arranges to have a valuation carried out. Only arrange for a valuation if you are serious about buying the property or you could find yourself in debt before the property has even been bought.

If you are experiencing debt problems or you need help with free debt advice, help or guidance in Preston, Milton Keynes, Newcastle, Reading, Southampton, Derby, Dudley, Luton, Walsall, Bournemouth, Huddersfield, Swindon, Liverpool, Nottingham, Burnley, Bolton, Blackpool, Middlesbrough, Oxford, Telford, York, Watford, Slough, Gloucester, Cambridge, Exeter or any UK city or town, debts.org can help. Call our free advice line on 0844 277 7999 or fill in the online form for professional and friendly debt help.

Seven ways to deal with mortgage arrears debt

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:59:00 +0000

Debt problems can become serious debt problems within just a few months if you are in arrears with your mortgage. Here are seven ways to reduce the risk of home repossession and give you a debt free future:

1. Pay off arrears quickly

Start to repay your mortgage arrears as quickly as possible as arrears can lead to extra charges, which will increase the amount you owe. If you arrange to pay off mortgage arrears quickly, you will have more money in the long run and you can avoid serious debt problems.

2. Extra mortgage payments to avoid debt problems

If you can make extra mortgage payments, then do so. You can avoid serious debt and serious mortgage debt by paying a bit extra each month to pay off your arrears. Your mortgage lender will probably be in agreement with this, as long as you are making an effort to clear your debts.

3. Include the arrears in the mortgage

You may already have a debt management plan arranged, and you may be facing up to more debt with mortgage arrears. Ask your lender if he can add your mortgage arrears to your total mortgage balance, which will spread the arrears over the period left on your mortgage. This will mean that your monthly payments will increase, but will give you some breathing space. You can get free advice from debt management companies about re-mortgaging, bankruptcy, debt management plans and individual voluntary arrangements.

4. Extend the mortgage to solve debt problems

If you have a repayment mortgage which you have been paying back for a long time, you could ask your lender to extend the term to 25 years again for the remaining amount. This means your monthly payments will reduce but you will be making them for longer, possibly into retirement. Make sure you understand the implications of extending the time of your mortgage before signing anything. This is not an easy way out as the money will still have to be paid back at some stage.

5. Delay mortgage arrears to help solve immediate debt

If you are suffering debt problems, and struggling to pay your mortgage arrears, ask your mortgage lender if you can delay paying arrears for a certain amount of time. Debt problems in the UK are increasing and you should talk to an independent debt advice company if you are struggling to make ends meet.

6. Payment holiday for mortgage debt

If you have an interest only mortgage, you may consider taking a payment holiday if your lender will allow it. This means that if you have an endowment policy which is linked to your mortgage, ask the endowment company if you can stop paying in for a limited period of time.

7. Selling your endowment policy

If your endowment policy has been running for several years, you could use the amount in the policy to pay off your mortgage arrears. You can cash in or sell the policy after taking advice from the mortgage lender and the endowment policy company. Make sure it is worth your while, as, if you cash in your endowment policy early, you could be losing out on a much bigger cash sum when it matures. Thousands of people get into serious debt every year in the UK by cashing in endowment policies early, only to find there are other ways to solve their debt problems.

If you are suffering debt problems and feel there is nowhere to turn, or you want some friendly and professional advice about debt management plans, individual voluntary arrangements or bankruptcy, or if you want to reclaim unfair bank charges in Liverpool, Leeds, Peterborough, Middlesbrough, Lincoln, Grantham, Burnley, Manchester, Poole, Sunderland, Huddersfield, Mansfield, Nottingham, Ipswich, Telford, Milton Keynes, Derby, Northampton, Portsmouth, Luton, Preston, Telford, York, Stockport, Brighton, Hull, Bradford, Wolverhampton, Scunthorpe, Carlisle, Swindon, Stoke or any town or city in the UK,contact debts.org free on 0844 277 7999 or fill in the online claim form.

Top ten house repossession tips

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:56:00 +0000

House repossessions hit a 12-year high in 2008, with over 200,000 home owners more than three months in arrears with their mortgages. If you want to avoid mortgage debt or house repossession, consider the following ten tips:

1. Flexible mortgage terms

Make sure you understand your mortgage terms to avoid debt problems later on. Most mortgages have some flexibility built in, so if you pay any extra in advance, you should be able to pay a reduced mortgage when things are difficult financially, or you may even be able to take a payment break.

2. Check the benefits you can claim

If you are unemployed and suffering debt problems or seeking debt advice in the UK, you should make sure you are getting the benefits you are entitled to. Also check if you have been paying mortgage payment protection insurance which could cover your mortgage payments for up to a year. If you have been mis-sold payment protection insurance you can reclaim the money paid with the help of a debt advice company. Also check with your benefits office to see if you are entitled to any help from the government with your mortgage repayments.

3. Check your budget before contacting your lender

Draw up a budget and note all of your outgoings and income before you contact your mortgage lender. Use an online mortgage calculator or online budget calculator to help you. If you are in need of free debt advice or information about debt management plans or individual voluntary arrangements, you should contact a regulated debt solutions company.

4. Face up to your mortgage debts

Keep in touch with your mortgage lender, and never ignore letters or phone calls. There are several options available to you if you are having problems paying your mortgage, or if you are suffering serious debt problems. The longer you leave it, the less sympathetic your lender will be, so act quickly when your debt problems start or you miss the first mortgage payment.

5. Consider your mortgage options to stay out of debt

Your mortgage lender may be able to offer you low cost alternatives to your current mortgage, such as reduced monthly payments for a set period of time or extending the term of your loan. You may even be able to take a mortgage payment holiday if your lender agrees to it. Address your debt problems as quickly as you can, or serious debt problems could follow. Debt advice is free in the UK with regulated debt help companies.

6. Mortgage arrears fears

If you fall into mortgage arrears, contact your lender immediately. If you have missed a couple of payments and you receive a letter from your lender, respond to it as quickly as possible. By failing to reply, you will be more likely to suffer house repossession. Always try to negotiate with your lender before they start legal action. You have nothing to lose by speaking directly to your lender.

7. House repossession and keys

Don´t hand the keys back to the lender and walk away. You will still not be free of debt. Seek independent advice first from a regulated debt company. Your debt problems could get worse and your name will appear on the mortgage repossessions register if your house is repossessed, which could affect any mortgage application in the future. If you can sell the house, then do so. Remember that if the house is repossessed and sold at auction, if there is any shortfall before the price it reaches and the money you owe, you will still be liable to pay that sum back. The lenders legally have 12 years to get the money back from you.

8. Mortgage court case

If the case against you goes to court and you don´t come to an agreement with the lender, make sure you turn up. The lender is likely to be at court to try and get an order of possession, but if you present an acceptable offer to repay your mortgage arrears, proceedings could be stopped by the judge. If you can´t afford to pay the full amount back, then make a reasonable offer to clear your mortgage arrears, and you may be in luck.

9. Your rights and the bailiffs

Bailiffs have to give you seven days to vacate your premises and can use reasonable force to enter the premises. Remember that the lender may have the legal right to repossess the house, but not the contents, so an agreement must be reached with them as to when you can collect your goods.

10. Beware sell to let schemes

Schemes which offer to buy your house and rent it back to you can leave you with serious debt problems. Always read the small print and make sure you can afford the rent. You could end up being evicted if you default on the rent payments. Smelling desperation, sell to let companies will also be offer you a price which is far less than your house is worth.

If you are falling behind with your mortgage payments or have mortgage arrears or serious debt problems, contact debts.org free on 0844 277 7999 or fill in the online claim form. If you want to reclaim bank charges, claim for mis sold payment protection insurance or PPI, or arrange a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA) in London, Liverpool, Burnley, Luton, Dudley, Derby, Reading, Plymouth, Southampton, Preston, Milton Keynes, Sunderland, Bournemouth, Southend-on-Sea, Newcastle, Middlesbrough, Oxford, Poole, Blackpool, York, West Bromwich, Peterborough, Stockport, Brighton, Slough, Gloucester, Watford, Rotherham, Cambridge, Exeter, Sheffield, Bristol, Hull, Bradford, Wolverhampton, Coventry, Stoke, Leicester or any other town or city in the UK.

10 tips to avoid house repossession

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:51:00 +0000

1. Mortgage arrears and serious debt problems

Millions of people in the UK are facing serious debt problems, mortgage arrears and even home repossession. If you ignore the bank statements and the letters from mortgage lenders, your debt problems will get worse. You will find a debt solution if you make the effort to contact a debt advice company. You can get out of debt at little or no cost in the UK today, and there are several options available to you if you are suffering minor or serious debt problems.

2. Check all mortgage paperwork

Take the time to sit down and go through every bit of paperwork you have relating to your mortgage. Read the small print so that you thoroughly understand the terms and conditions and check when you will be in danger of house repossession if your mortgage is in arrears.

3. Address your mortgage arrears

Once you understand the seriousness of your mortgage arrears, you can take steps to get debt advice or debt help in the UK. Don´t bury your head in the sand but make sure you understand the extent of your mortgage debt problem before contacting a debt advice company who will help you and give you free guidance.

4. Monthly mortgage payment debt

Find out how much you are expected to pay monthly, when this is likely to change, whether it has gone up recently and whether it is likely to go up when your mortgage is next reviewed.

5. Be honest with yourself

Be honest with yourself and with your lender to avoid more mortgage arrears and debt problems. Can you continue paying your current monthly payment? Can you afford it over the next few months, and more importantly, if your mortgage increases again, can you manage the payments?

6. Show commitment and willing to your mortgage lender

Check how many payments you have missed. If your mortgage arrears are the result of unemployment, redundancy or a short-term debt problem which may be resolved in a couple of months, contact your mortgage lender and explain this. If you have mortgage arrears and debt problems which are likely to change for the better, offer to pay your missed payments back over
6 months. Take the bull by the horns and contact your lender before he starts to add interest and costs to any mortgage arrears. Any arrangement you make to clear your mortgage debt, you must stick to – so make sure it is achievable before offering to pay off the amount you owe.

7. Mortgage is a priority payment

Understand that paying your mortgage is a priority payment. A mortgage loan is secured against your home, which means if you fail to keep up the mortgage repayments, you could face house repossession. If you are also struggling with credit card debts, store card debts or bank loan debts, pay your mortgage before paying unsecured debts.

8. Work out your total debts and take advice

Work out how much your total debts amount to. Include everything in your calculations including charges, late payment fees, court costs. Pay the arrears back as soon as you possibly can. Consider selling household goods, cashing in an insurance policy, selling a car or caravan, or even taking a part-time job in the evenings to clear your mortgage debt.

9. Going to court for mortgage debts

If your lender is taking you to court, write down your side of the case, to present to the judge on the day of the court case. Put down concrete proposals which are manageable and outline how much you can pay back each month to clear your mortgage arrears. Put your case across clearly to the judge, and there is every chance that your house will not be repossessed.

10. Repayment mortgage debts

If you are struggling to pay back a repayment mortgage, where you will pay back the amount you borrowed plus interest, ask your lender if he can arrange an interest free mortgage for 6 months, which should give you some breathing space. This will make your payments less for that amount of time. Lenders will treat you much more sympathetically if you make a sensible suggestion for repayment, before they start to threaten you with court action or house repossession.

Debts.org helps people to get out of debt, and gives free debt advice, arranges Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs) and can even reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Luton, Newcastle, Stoke, Colchester, Oldham, Burnley, Manchester, St.Helens, Crawley, Blackburn, Sutton Coldfield, Eastbourne, Portsmouth, Northampton, Brighton, Stockport, Poole, Oxford, Middlesbrough, Bolton, Ipswich, York, Telford, Rotherham, Dewsbury, Huddersfield, Sheffield, Bristol, Hull, Nottingham and every other town and city in the UK. Call our free debts advice helpline on 0844 277 7999 or fill in the online form.

Top ten list for first time home buyers

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:44:00 +0000

If you are a first time home buyer, make sure you get the right advice and help with your mortgage arrangements. There are so many mortgage deals available nowadays, that you need to shop around and make sure the mortgage you choose is the right one for you. Thousands of people get into debt and seek debt advice every year when they fall behind with their mortgages and some even face home repossession. Make sure you get the mortgage to suit you and don´t be palmed off with the first one that is discussed. This is your house, your future and your mortgage, and by taking your time to find the right mortgage you can avoid debt problems in the future.

1. Help and advice to avoid debt

Seek the help and advice of a good mortgage broker who will explain Zero mortgage deposits, capped rate mortgages, fixed rate mortgages and flexible mortgages. Don´t be afraid to ask questions. Buying a house is probably the biggest purchase you will ever make in your life so take your time. Choosing the wrong mortgage could mean you end up with serious debt problems later on. This is one of the biggest decisions you will ever have to make in your life, so make it carefully.

2. Arrange a mortgage before you start searching for a house

One of the biggest mistakes first time home buyers make is to find their ´perfect´ property before they know how much they can borrow. The risk then is that they over-borrow and find themselves in debt and seeking debt advice or help a couple of years or months down the line. Firstly, find out if you can get a mortgage and how much for. You can then apply for an agreement in principle. This will cost you nothing and will not tie you to any one lender, but will give you a good idea of how much money you can borrow. Take your time to get the right mortgage deal for you and you can avoid debt problems further down the line.

3. Understand your finances to avoid serious debt problems

Go through your finances with a fine toothcomb to make sure you can afford the repayments of any mortgage you take on. Serious debt problems can arise if you borrow too much money and then have problems paying it back. If you choose the wrong mortgage terms and conditions you could end up facing house repossession and seeking debt advice and help. Contact Experian or Equifax for a copy of your personal credit history and if your credit rating is low, take steps to improve it.

4. Bad debt and poor credit rating

Often, only after first time buyers have submitted a mortgage application do they find out about their poor credit rating. This can create problems with borrowing money, and it is a good idea to check your credit rating before applying for a mortgage. Save time by checking your credit rating early on, and avoid debt problems later. If your credit rating is low, you may not even get a mortgage, or if you do, you could end up getting less than you bargained for.

5. Budget for the extras to avoid debt

Bear in mind that your new home, even if it has been recently built, will need furniture, and an older property may need extensive renovation. Consider all the extras before making an offer, and make sure you can afford it. Stretching yourself to afford an expensive house may seem like a good idea at the outset, but can cause serious debt problems and even house repossession later on. In your list of expenses, also include stamp duty, duty land tax, surveying and conveyancing. Look out for hidden extras which can trip you up if you don´t consider them at the time of taking a mortgage.

6. Monthly household bills

When you buy a house, you need to consider all of the ongoing expenses that come with it. In addition to monthly mortgage repayments, you will be liable to pay council tax, service charges, household repairs and utility bills such as gas and electricity. Work out how much the monthly bills are likely to be before applying for a mortgage. You can look on several utility comparison sites on the internet to give you an idea of how much you are likely to be paying in your area each month for gas and electricity.

7. Information to avoid council tax debt

If you are viewing the property with an estate agent, ask them which council tax band the property is in, to avoid debt problems later on, and how the local authority levies the charges. Council tax is a contentious issue, and you don´t want any nasty surprises with high charges after you have bought the property. Check the local rates bills before committing yourself to buying a property, and make sure everything is clear in your mind before going ahead.

8. Research the area to avoid debt when you want to re-sell

We have all heard the horror stories about house prices plummeting after new roads are built close to properties, or groups of travellers come to reside on your doorstep, but you can help avoid debt problems in the future by researching the area where you want to buy. Look at what is selling and for how much. All sorts of factors can add value to your property. Is it close to a bus route for example, close to shops and amenities, and close to schools? All of these things will add value to your property, meaning you will avoid negative equity in the future.

9. Local transport to work

When viewing properties, ask about local transport links and work out how much time you will add or lose by moving to the area. If you are moving to the suburbs of a city because property is cheaper, don´t lose out by having to pay sky-high transport prices to commute. Buyers can often be swept away by the feel-good factor when viewing their ´dream home´ only to realise a few months down the line that it is in the wrong area or that local amenities are not up to scratch.

10. Clear your debts and feel at home

If you have any outstanding debts, or debt problems, seek debt advice in the UK before applying for a mortgage. You may be instructed to clear these debts before you are offered a mortgage, to ensure you don´t suffer more debt problems in the future. Have a good walk around the area to make sure it is the right place for you to buy a house. Are there shops, pubs, leisure facilities close by? Would you feel safe walking home at night? Don´t make any split-second decisions just because you like the property. There are a lot more things to consider.Debts.org is a specialist debts advice company who can help you get out of debt, offer you a debt management plan, an Independent Voluntary Arrangement, reclaim unfair bank charges or mis-sold payment protection insurance in Liverpool, Leeds, London, Preston, Stockport, Middlesbrough, Oxford, Poole, Telford, West Bromwich, York, Slough, Gloucester, Cambridge, Exeter, Rotherham, Reading, Nottingham, Burnley, Bradford, Leicester, Bristol, Hull or any other UK city.

5 ways to avoid house repossession in a recession

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:30:00 +0000

With the credit crunch snapping at everyone´s ankles, and talk of the recession continuing well into 2010, it is little wonder so many people in the UK are suffering debt problems and seeking debt advice. If you are trying to sell your house to avoid home repossession, you need to make your house as attractive as possible to increase the chances of a quick sale. You may have heard the stories about the smell of fresh coffee brewing or the aroma of bread being baked, helping to create an atmosphere most home buyers are tempted by. Here are five tips to consider when putting your house on the market:

1. Stay neutral to sell quickly

Stick with neutral colours. You may have blood red walls, lime green carpets and swan murals painted on the ceiling, but the best way to present your house is to give it a lick of neutral paint, which will make it look clean and fresh. Good colours to paint the walls include: cream, white with a hint of pink or stone. A straightforward paint job won´t cost you much money, and could make all the difference. Serious debt problems can be avoided if you manage to sell your house quickly.

2. Stay clean to avoid debt problems

You may need to sell your house quickly because of mounting debt problems, bankruptcy or the threat of house repossession. You may have massive credit card debts or serious store card debts and need to release some money. Remember that a clean home is an inviting home, so when you are expecting prospective buyers, keep the house spotless. Put all clutter out of the way and make sure the house is aired and smells fresh.

3. Stay light and bright and avoid house repossession

A bright and light house will feel and look bigger, and impress any potential buyer. Where possible, arrange viewings when the sun is shining through the windows of main rooms such as the lounge. Open all curtains and blinds to allow the light in. Simple measures like this can boost the chances of a quick sale, and can help you to solve your debt problems without seeking specialist advice or arranging a debt management plan.

4. Staying alive to sell your house quickly

Keep plants and flowers looking fresh, alive and healthy before prospective buyers arrive at your house. Cut-flowers will make the house look colourful, bright and fresh. By not presenting your home well, you could end up with the house being repossessed, or minor debt problems could become serious debt problems if you fail to sell your house quickly.

5. Modern and Contemporary

You don´t need to spend a lot of money to make your house look more modern and contemporary. Chic-looking houses sell quicker. Young buyers will be impressed with well-placed finishing touches such as rugs and blinds, which can improve the look of your house. You will be amazed how cheaply you can make massive improvements to the look of your home. If you are suffering debt problems or you are looking or debt advice in London, Manchester, Luton, Portsmouth, Northampton, Preston, Milton Keynes, Newcastle, Sunderland, Swindon, Ipswich, Telford, Bolton, Stockport, Watford, Rotherham, Cambridge, Exeter, York, Derby, Preston, Burnley, Bournemouth, Brighton, Liverpool or anywhere in the UK, and you don´t know which way to turn, debts.org can help you. For free, confidential advice about how you can get out of debt call or free advice line on 0844 277 7999 or fill in the online form.

10 ways to bridge the pension gap

noreply@blogger.com (debts.org) — Tue, 04 Aug 2009 06:26:00 +0000

New personal accounts regulations will come into force in 2012, but what can you do to make the most of your money between now and then? If, like many people in the UK, you are suffering debt problems, you may want to save money where possible for your retirement. Consider the following ten tips.

1. Employer´s pension scheme

Staying with your employer´s pension scheme until 2012 is probably the best option. If the employer´s scheme is better for you than the personal accounts scheme, they won´t have to offer the latter. If you are seeking debt advice or suffering debt problems, or even considering a debt management plan, make sure you fully understand any pension scheme you are paying in to.

2. Employer contributions scheme

If you are just being offered the chance to join an employer-backed scheme, do so, and you will get the advantage of employer contribution or the next 3 years.

3. Start saving now to avoid debt in later lifeOne major cause of debt problems later in life, is that people don´t start to save early enough to enjoy their retirement. Start saving as soon as you can to avoid debt management plans, IVAs or even bankruptcy in later life. What you manage to save between now and 2012 can be put into your personal account in the first year it opens.

4. Don´t delay with saving for retirement You may have other financial commitments right now, such as saving for a house deposit or buying a car, but start saving as soon as you can towards retirement – it comes round a lot quicker than you expect. The last thing you want at retirement age is to worry about debt or to have to seek debt advice in the UK.

5. Consider ISA allowances

One of the best tax-free ways to save for retirement between now and 2012 is to put money into a cash ISA. You can pay up to £3,000 per year into a cash ISA, and the amount you pay in can be used as a contribution into a personal account in 2012, if the total is less than £10,000.

6. A Stakeholder pension scheme to avoid debtYou can start to save in a stakeholder scheme even if there is no employer contribution, and you could begin building a retirement fund before 2012. Although a stakeholder scheme is a good way of saving, you can´t transfer these funds to a personal account in 2012.

7. Charges on savings can cause debt problemsPersonal accounts will offer a low-cost way of saving for your retirement, but excessive charges on accounts can cause debt problems. If you are currently paying high bank charges, you should look at ways to reduce these charges before 2012. Limits apply on maximum charges for stakeholder pension schemes.

8. Personal accounts not for everyoneIf you are going to retire soon after 2012, and you have no other savings, it may be better for you not to contribute to personal accounts, as your savings will replace state benefits that you are eligible for.

9. Tax-free alternatives to avoid debt problems If you are close to retiring, you could put your savings into tax-free products to run alongside your personal account. Cash ISAs, Premium Bonds or Stocks and Shares ISAs could be a good option for you. It is more important than ever these days to start saving for your retirement as early as you can. Debt problems, debt management plans, (DMPs), Individual voluntary arrangements (IVAs) and other debt solutions are more difficult to pay off when you are older and you should aim to be debt-free as soon as possible.

10. Tax relief on pension contributionsRemember that pension contributions receive tax relief at the marginal rate. This means that if you are paying tax at a high rate now, but will be paying less in 2012, your pension contributions now will be more valuable than they will in 2012, as you will get 40% tax relief, which is an incentive to pay the contributions now.

If you are suffering debt problems or you need debt advice from a specialist, regulated debt solution company, and you live anywhere in the UK including London, Birmingham, Wolverhampton, Nottingham, Stoke-on-Trent, Bradford, Hull, Liverpool, Leeds, Manchester, Leicester, Coventry, Newcastle, Slough, Gloucester, Plymouth, Southampton, Derby, Northampton, Portsmouth, Luton, Preston, Sunderland, Norwich, Bournemouth, Southend, Swindon or Huddersfield, contact debts.org on 0844 277 7999 or fill in the online form.

Top ten debt management tips

noreply@blogger.com (debts.org) — Thu, 30 Jul 2009 11:15:00 +0000

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.

How debt problems can improve your love life

noreply@blogger.com (debts.org) — Thu, 30 Jul 2009 11:04:00 +0000

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.

Ten ways to reduce debt forever

noreply@blogger.com (debts.org) — Thu, 30 Jul 2009 11:00:00 +0000

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.

Ten ways to get out of debt

noreply@blogger.com (debts.org) — Thu, 30 Jul 2009 10:16:00 +0000

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.

50 ways to save money and avoid debt problems

noreply@blogger.com (debts.org) — Thu, 30 Jul 2009 09:48:00 +0000

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.

TEN TIPS TO RECLAIM YOUR BANK CHARGES

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 08:24:00 +0000

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.

RECLAIM UNFAIR BANK CHARGES TODAY

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 08:17:00 +0000

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.

FREQUENTLY ASKED QUESTIONS ABOUT PPI and MIS SOLD PPI

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 08:12:00 +0000

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.

PAYMENT PROTECTION INSURANCE (PPI)

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 08:06:00 +0000

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

What is a mortgage exit fee?

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 07:58:00 +0000

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.

Top tips to save energy and money

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 07:54:00 +0000

• Insulate your walls

You 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.

Should I switch energy suppliers?

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 07:50:00 +0000

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.

Bad billing for energy suppliers

noreply@blogger.com (debts.org) — Tue, 28 Jul 2009 07:16:00 +0000

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.”

IVAs and Bankruptcy

noreply@blogger.com (debts.org) — Thu, 23 Jul 2009 09:47:00 +0000

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

noreply@blogger.com (debts.org) — Thu, 23 Jul 2009 09:44:00 +0000

Know your rights

If 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.