Are you struggling with your unsecured debt? An IVA (Individual Voluntary Arrangement) might be just what you need to solve your debt problems and allow you to become debt free in as little as 60 months.

If you are struggling with debt you are not alone, maybe people have fallen victim to the credit crunch and may have lost their jobs or had essential overtimes hours reduced or cut altogether. There are many reasons why you may come across financial difficulty, and if you are facing a mountain of unaffordable debt, don’t panic as One Advice can help.

There are a number of ways that you can deal with debt and if you have unsecured debts over £12,000 you could solve debt problems with IVA and avoid bankruptcy. An IVA helps you avoid some of the long-term restrictions of bankruptcy and protects your assets meaning that you shouldn’t have to sell your home.

An IVA requires you to enter into a legally binding contract with your unsecured creditors with the aim to help you  clear your debts and become debt free, usually over a typical period of 60 months. On successful completion of your IVA, any unpaid debt can be written off.

An IVA arrangement is not suitable for everyone with unsecured debts, therefore there is some criteria that you will need to fit:

• You must have at least £12,000 of unsecured debt
• You must be able to commit to make a set payment for the full term of the IVA
• You have three or more unsecured creditors

This offers just the basic IVA criteria and the only way to know if an IVA is right for you is to speak to our professional IVA advisor, call One Advice now on 0800 048 1752.

Always remember that you must be fully committed to your IVA, as although it allows you to avoid bankruptcy you must commit to making the agreed payments otherwise your creditors could declare you bankrupt.

Debt worries are the biggest cause of stress with almost half (40%) of all adults being worried about the security of their jobs and their financial futures.

It is not just debt stress which we are all experiencing, it seems that we are turning into a nation of worries as we stress over problems with friends and family members (25%), health concerns (24%) and stress at work (22%). Coupled with debt worries is our concern about being made redundant from our jobs and unemployment, with almost a quarter (21%) of adults worried about this.

Senior health analyst at Mintel, Alexandra Richmond, who conducted the research commented: “Even though the recession may be over, people have become more aware of the fragility of their jobs, or indeed the price of their home, which is why employment and finance top our list of worries.”

It seems as though many of us are not seeking help with this stress, as only 6% of those surveyed would turn to professional help. If debt worries tops your stress list, One Advice can help. We can help with your unsecured debts by making them more affordable to you on a monthly basis.

If you have debt under £12,000 you may find that a Debt Management Plan can help you with your debt stress. We can make your debt more affordable to you on a monthly basis by negotiating with your creditors so you can benefit from a low monthly payment. We will take away any of the debt worries and stress that you are feeling as we will deal with your unsecured creditors on your behalf, just forward any contact onto us.

Those with debts over £12,000 may want to look at the IVA route. This is a legally binding contract between you and your creditors which allows you to repay only the debt that you can afford over a 60 month period, and any unpaid debt will be written off on completion of the agreement. If you have bankruptcy worries and fear losing your home, an IVA could be your opportunity to become debt free AND keep your home.

Call One Advice now on 0800 048 1752 for more details.

If you find it a struggle to meet minimum debt repayments and your unsecured debt level if over £12,000, you may be considering an IVA as your possible debt solution. An IVA (Individual Voluntary Arrangement) is a formal agreement between you and your unsecured creditors where you repay as much of your unsecured debt as you can afford over a typical period of 60 months and, on completion of your IVA, your creditors will clear debt which has not been paid.

Can I Clear my Debt with an IVA?

Struggling to make your debt repayments is a worry for many people who find themselves in this situation, and dealing with multiple unsecured debts, such as store cards, credit cards or personal loans, can be very difficult to manage if you find yourself slipping behind with these repayments. If this is you, you may be considering your debt solution options, and an IVA is one of these which allows you to clear a proportion of your debt.

Your IVA proposal allows you to make agreed payments towards your debt over a set period of time. IVAs have helped many of those who were struggling with debt and thought that being debt free was just an impossible dream. An IVA is a big commitment as you agree to an amount that you can afford to pay towards your debt and you must continue to make these payments until the end of your IVA agreement or else your creditors could start bankruptcy proceedings against you.

For the IVA to be agreed, 75% (by debt value) of your creditors must approve the terms of your IVA proposal. If this happens, your other creditors will also be bound by the terms even if they voted against the IVA. Once the IVA has been approved and is in place, it is a legally-binding agreement meaning that your creditors won’t be able to take further action to reclaim these debts as long as you keep up with your IVA payment commitments.

What Debt Can I Clear with an IVA?

An IVA does not include all of your debts. It can only cover non-priority debts including your credit card debt, store card debt, overdraft debt, catalogue debt etc. You can not clear any priority debt with an IVA, such as your mortgage or secured loan. However, an IVA will indirectly help make these more affordable to you since these outgoings would be taken into account.

To see if you can clear debt with an IVA or for debt advice about our range debt solutions,  take the 1 Minute Debt Test now or call today on 0800 048 1752.

The Government have recently announced that the number of people who can no longer afford to pay back their debts (meaning they are insolvent) is increasing, with over 100,000 people being declared bankrupt or opting for an IVA in 2007.

According to The Insolvency Service, this figure is hitting record levels especially in comparison to the figure in 2005, where less than 70,000 declared insolvency. These problems have stemmed from the worldwide credit crunch and the increased price of living, with these figures set to go even higher in 2008.

Help for Those Facing Bankruptcy

IVA’s (Individual Voluntary Arrangement) are a Government introduced alternative to bankruptcy, and you should consider exploring this route first. One Advice can offer you free advice and information on IVA’s and, if you qualify, you could write off a large proportion of your debt and avoid some of the implications of bankruptcy, such as selling your home.

Bankruptcy is an extreme debt solution and should only ever be seen as a debt solution in the last resort, there are a number of alternative debt solutions which you may want to consider. The reason why bankruptcy is not a quick-fix to your debt is because the short-term and long-term consequences of declaring bankruptcy can be serious, as they can affect your ability to keep your home or earn a living through your own business.

But don’t if you feel as though bankruptcy is daunting possibility don’t panic, as there could be be possible alternate avenues which allow you to avoid bankruptcy and become debt free:

1: Understand your finances. Perhaps one of the reasons why you are struggling with your debts is because you do not have a firm grip on your finances. Therefore ensure that you find the time to review your current finances. Make sure that you take into consideration both your incomings and outgoings.

Understand what your priority debts are, which are those payments that you must not miss at any cost or else you could face severe consequences, and these include items such as your mortgage/rent or household utility bills.

Work out where your excess spending is going, such as take aways or early-morning coffee habit, and cut out these non-essential outgoings and put any extra cash towards repaying your debts.

2: Debt Management Plan as a Debt Solution. Bankruptcy is not the only debt solution available and, in many cases, you will find that you can avoid bankruptcy with an alternate debt solution. We can devise a debt management plan for you where you make a smaller monthly payment to us and we will make the payments on your behalf to your unsecured creditors. We will take into account all of your essential outgoings, such as household builds and food shopping, and ensure that you can afford these and still make a reduced payment to your creditors from the remaining money.

3: IVA as a Debt solution. An Individual Voluntary Arrangements (IVA) is a bankruptcy alternative which you may wish to consider if you are a homeowner with over £12,000 worth of unsecured debt. An IVA is a formal arrangement between you and your creditors where you agree to make a reduced monthly payment to your debt for a typical period of 60 months. Unlike bankruptcy, your home should be protected during the IVA although you may have to release some of the equity.

Hopefully you should now realise that bankruptcy is not the only solution when you are struggling with unsecured debt, and One Advice are here to help. We have helped many of our clients avoid bankruptcy with one of our debt solutions. Fill out the Quick Enquiry form on the right of this article for an immediate call back.

When trying to discover the right type of debt management advice you may come across the term ‘priority debts‘. Understanding what this means is essential when sorting out your finances, as you need to establish what your priority debts are.

An expert debt advisor should be able to explain the differences between priority debts and non-priority debts, and this will help them come to a debt solution which is right for you. Obviously all your debt is important, but priority debts are those which carry huge consequences if you miss payments, such as repossession if you fail to keep up with your mortgage payments.

Priority debts include:
* Mortgage or rent payments
* Council tax
* Utility bills
* Court fines
* Hire Purchase
* Other debts secured against your home, such as a secured debt consolidation loan

Non-priority debts include:
* Unsecured loans
* Store cards
* Credit cards
* Overdrafts

If you go into a debt solution with One Advice, such as an IVA or Debt Management Plan, we will always take account of how much you need to pay to your priority debts and ensure that these are affordable to you. After that we will then work out how much you can afford to pay to your non-priority debt.

So if you’re struggling to meet repayments to your non-priority debt due to high levels of priority debts, please speak to one of our expert debt advisors today on 0800 048 1752.

Many first-time buyers (FTBs) are struggling to get their foot on the property ladder as mortgage lenders require a large house deposit. It may take many months or even years to save up this amount, but you can save a little bit quicker by cutting back on unnecessary spending.

Research by the Halifax suggests that many FTBs are missing out on potential house deposit savings of £308, and have put together a “quick-fix” top six list of areas to cut back on:

1. Quit smoking  – Save £160.83
2. Cancel gym membership – Save £42.37
3. Cut out morning latte – Save £37.80
4. Cut out one takeaway per week – Save £35.96
5. Drink two less pints of beer per week – Save £22.56
6. Swap a litre of bottled water for tap water – Save £8.68

This is a total of £308.20 a month, or the equivalent of £3,698.44 a year.

Although non-smokers may not be able to save as much, by following the remaining tips FTB savers could put an additional monthly sum of almost £150 towards their house deposit.

Head of mortgage development at Halifax, Jaedon Green, said: “Our research shows that spring cleaning your finances can potentially save first time buyers thousands each year. By identifying a few simple changes to their everyday routine and saving regularly, first time buyers can make a big boost to their deposit pot.”

There are more ways to save money though, and you could save for that house deposit even quicker by swapping driving for cycling and always making sure that you use discount vouchers before you buy anything online. Renters should also look at switching their energy supplier and reading our article about How to Save for a House Deposit Whilst Renting for more ideas.

Please leave a comment if you can think of some more simple money saving ideas which may help a FTB save for their house deposit that little bit quicker…

Deciding upon the right debt solution is never easy, and you may ask yourself if an IVA is a good bankruptcy alternative or whether you should think about any alternative debt solutions. Even if your debt is unmanageable, bankruptcy does not need to be the answer as there are many long term consequences which cannot be avoided.

Before deciding upon any debt solution you should seek expert advice. One Advice have an expert team who can help guide you to the right situation based on your own set of unique circumstances. This could be an IVA, Debt Management Plan, Bankruptcy or another debt solution. The right debt solution cannot be determined until you have spoken to the experts, so call One Advice now on freephone 0800 048 1752.

Is an IVA right for me?

Individual Voluntary Arrangement is short for IVA and is a legally binding agreement with your unsecured creditors. It was introduced as a viable bankruptcy alternative where you agree to repay a percentage of your unsecured debts, and write off any remaining amount which hasn’t been paid on completion of your IVA.

As part of the IVA you must commit to making regular monthly payments towards your debts, over a typical 60 month period. Once you have successfully completed the IVA, any remaining unsecured debt will be written off meaning that you are debt free.

It is important to note that not everyone qualifies for an IVA and the best way to discover if you do is to get expert IVA advice. As a guideline you will need to have unsecured debt over £12,000 which you owe to three or more creditors with a reasonable disposable income. However, it is down to your creditors to decide whether or not to accept your IVA proposal and 75% (in terms of debt value) must agree to the IVA proposal before it can go ahead.

Is an IVA a Good Alternative to Bankruptcy?

The right debt solution for you will be dependant on a number of different factors. And the best way you can discover  if an IVA is a good alternative to bankruptcy for you personally is to get IVA advice. Typically IVAs are often considered a preferable  bankruptcy alternative, but this is not the case for everyone as you may find that you are not eligible for an IVA (although if this is the case there are other debt solution avenues which you may wish to explore, such as a debt management plan).

IVAs do have a number of advantages over bankruptcy, one of the major ones being is that an IVA is unlikely to lead to the repossession of your assets (including your home or car), as long as you stick to the terms of your IVA. It is worth noting that, with an IVA, you may still be required to release some of the equity in your home in the final year of the IVA.

For personalised debt advice and to discover is an IVA is the right bankruptcy alternative for you,call one of our IVA or Bankruptcy specialists on 0800 048 1758 or fill out the Quick Enquiry form for a callback.

Now is the time when our credit card bills will be hitting the mat with a hefty thud and now is the time to fully ensure that you keep to your New Years Resolutions and make 2010 be the best year ever for your personal finances. The good news is that 10 simple debt management tips could save you £1,000 this year, and just think what you could use that money for, anything from paying off your debt to treating yourself to a hot holiday abroad.

Which? have put together a list of 10 tips which are designed to aid you with your 2010money makeover:

1. Check your credit cards. The average APR of a credit card is now at almost 17%, but be on the look out for any 0% deals where you can transfer your balance and Which? believes could save as much as £500 a year on a £3,000 balance.
2. Switch your current accounts. Although switching your current accounts may not save you money in the short term, it could transform your banking experiences and make it more of a pleasure to deal with your finances.
3. Change your energy suppliers. Recent research from Which? Switch reveals that UK households  who have switched their energy supplier could save an average £263 a year. This is all extra money that you could be using to pay off your debt and we can help our clients to switch their suppliers and do a comparison check to ensure that you are getting a great deal.
4. Get a free water meter. It is worth looking into getting a free water meter as most homes in England and Wales are entitled to a free water meter. Getting the water meter installed could help you do your bit for the environment by saving water and also reduce your bills.
5. Open a new savings account. If you are saving money on a daily basis, or whenever you can afford to do so, it always makes sense to ensure that your money is working as hard as possible for you. Which? recommend that you check the interest rates on your current your savings accounts and advise that you switch is you are earning any less than 3% interest or if your cash Isa is less than 2.5%.
6. Find the cheapest petrol. One of the perils of being a car owner is ending up paying more than necessary for petrol. It is essential so make it as cheap as possible and use the Internet to search for the best petrol prices in your postcode.
7. Minimise your insurance premiums. Always make sure you are getting the best price for your insurances and be careful that your current car or home insurers don’t increase their costs when it is due for renewal.
8. Have a house swapping holiday. For a holiday with a difference consider a house swap. For example, a week’s trip to New York could save you around £900 compared to the price of a three star hotel.
9. Compare phone, TV and broadband prices. The same way as you would do with your utility suppliers, don’t pay over the odds for your home phone services  when there are options such as money-saving bundles  or making free phone calls from your home computer via the Internet.
10. Insulate your home. Consider insulating your loft with blanket rolls as these could provide you with significant savings on your heating bills.

Martyn Hocking, Editor at Which?, says: “If you make just one New Year’s resolution this year, make it that you’ll face your finances head on.” One Advice are also on hand to help you with your finances and if your debt repayments are becoming a struggle we can offer free debt advice and a range of financial solutions to help you to manage your money better.

We all like to splash our cash a little bit in the January sales, and being so giving to others at Christmas makes many of us feel as though we can treat ourselves a little bit. But many of us also have debt free New Years resolutions too which can conflict with our sales spending.

It turns out debt advice could be needed by many after our January sales spree with almost £5 billion will be spent this month in the sales, according to research by Bright Grey. And although a bit of thrifty sales shopping means that we avoid paying full retail prices, it is important to remember that bargains are only bargains if we actually use them. This research goes even further to say we consider almost £2 billion of our hard earned cash spent in the January sales was  a ‘waste of money’.

54% of shopping done in the January sales tends to be spontaneous, with only 21% researching prices and shopping online to be sure of the best deal. Men are the biggest spenders, spending over £50 more than women, but more women consider their sales purchase to be wasted. To fit with the other typical New Years Resolutions, like losing weight and keeping fit, 10% of women buy clothes a size too small in hope they’ll eventually slim into it.

There is obviously the danger of overspending, which can lead many January sales spenders needing to seek debt advice to get their finances in order for 2010.

Roger Edwards, from Bright Grey, said: “Christmas can be enough of a strain, without adding huge bills for impulse purchases in the sales… It seems a lot of us are getting carried away with impulsive spending, but by simply cutting back a little we could put the money that’s saved towards protecting our lifestyle and financial security.”

There is no doubt about it, with the cost of living on the rise and £165 million pounds worth of school loans taken out for schooling fees last year, it is important that all parents keep an eye on their debt levels.

Within the next three years, a single parent with a child as young as seven could be forced into work or risk further debt management problems, as the government transfer their income support into jobseekers allowance. Currently a single parent is able to claim income support for a child up to the age of twelve years but by 2010 this age will be reduced to seven.

It is likely that more single parents will have to seek debt advice as the rise in every day expenses, such as food prices and fuel bills, means it will be very difficult to survive financially if income support stops being paid. It is estimated that the cost of raising a child from birth to the age of 21 is more than £180,000.

Chief Executive of the Child Poverty Action Group, Kate Green, comments: “Taking money away from families who are already poor, will simply increase poverty and many children will have their health and well-being put at risk.”

5 Debt Advice Tips for Single Parents

1: Check your Benefits

The benefits system is designed to help you and it is important that you are claiming for everything that you can. It is estimated that people across the UK are missing out on more than £8 billion pounds a year in tax credits and benefits, so make sure that you are not one of them. There are many ways that you can see what benefits you may be eligible for, try the online benefits calculator at http://www.entitledto.co.uk.

a) Income Support:
Income support is based on your employment status and is available to people between 16-59 years old who are on a low income and are working less than 16 hours per week, or are unemployed. For more information and to see if you can claim for income support, please get in touch with your local Jobcentre Plus Office.

b) Child Benefit:

This is a government funded benefit which is paid for each child and is not determined by your employment status or savings. You should be eligible if your child is under 16, 17 and under and has registered to work/train with the Careers Service or Connexions Service, or if they are under 19 and in full time education. For more information please contact your child benefit office.

Even if you have a job and your child is in college, they could qualify for Education Maintenance Allowance which means that they could earn an additional £30 per week.

2: Budget
It is important that you set a realistic budget for your household and stick to it. Although it might be hard to do at first, it is one of the best ways for you to control your outgoings and your debt levels. This way you should also be able to set aside extra funds for birthdays and Christmas, so that you don’t find yourself going without.

3: Switch Your Suppliers
There is no use being with a company who do not offer you value for money, and switching to a more cost efficient plan or a new supplier could save you hundreds of pounds. Although it might sound like a bit of hassle to change, it is a simple process and worth the extra effort as companies often offer the best deals to new customers.

Think about the areas where you can save money, such as broadband, telephone line, gas provider, electricity provider, digital TV etc.

4: Avoid further debt
When your finances are getting out of control, many people think that a short term solution is to take out credit cards or an unsecured loan so they can afford to pay for their current debts. But using one form of debt to pay off another can be a vicious circle of debt which is often hard to break.

Always try and avoid making payments or purchasing items with credit or borrowing additional money if you don’t need to. If you must take out further credit for an expense that you cannot avoid, then try to make sure that you pay it off the following month so you are not stung by high levels of interest. Try to avoid store cards at all costs, which have been described as the debt “devil” due to their extortionate interest rate.

5: Take Debt Advice
If you are struggling with debt then please feel free to get in touch with One Advice. No matter what your situation, we are here to help. We can speak to your creditors on your behalf and try to negotiate a lower monthly payment to your unsecured debts. You might find that paying less to your unsecured debts means that you have more money for household costs and your secured repayments, such as a mortgage or hire purchase.

Free Debt Advice for Single Parents

If your debt levels are becoming a struggle, then it is important that you seek expert debt advice. One Advice have a strong team of professional debt advisors, and we will help identify a debt solution which is right for your financial circumstances.

Recent research has reported that single parent families are being forced into loans with doorstep lenders, as they are struggling with debt and are often turned down by high-street banks. The One Parent Families charity reports that three-quarters of single parents are using credit to manage their finances, and 40% admitted that they are “always in debt”, compared with 28% of couples.

If you are a single parent struggling with debt levels, then maybe you do not need to take out more credit but instead make the debt that you have much more manageable to you. This is how One Advice can help, our team of expert debt advisors will go through your financial circumstances and help you to find a debt solution which is right for you.

There are a number of debt solutions which you might want to consider, including:

• Debt Management Plan:An informal agreement between you and your unsecured creditors, where you agree to repay a reduced amount to your debt. As part of the debt management plan, you make one payment to us which we will fairly distribute between your creditors. We will also negotiate on your behalf to try and stop any additional interest and charges being added to your debt, but this cannot be guaranteed.
• IVA: Like a debt management plan, an IVA allows you to make a lower monthly payment to your creditors but comes with added benefits. An IVA is a legally binding contract between the debtor and their creditor and is the only debt solution (besides bankruptcy) which can write off any part of your debt. All interest and charges are automatically frozen and you only repay the debt that you can afford to. You will make an agreed monthly payment over a period of 60 months and any unaffordable debt is legally cleared at the end of your IVA term .

No matter what your personal circumstances or your level of debt, One Advice can find a debt solution which will suit your needs.

For free debt advice, call One Advice on 0800 048 1752 or take the 1 Minute Debt Test.

Debt worries can be all consuming, and may of those who are struggling with their debts and are in need of debt advice are taking their debt problems into the workplace.

According to recent research released by Axa, over 70% of us admit to feeling anxious about our finances and spend time thinking about the best way to deal with them, which includes times when we should be working. 5% of people say that they have also taken time off work because their debt problems have become to much to handle, which means that 1.4 million people have missed work due to debt worries.

Dudley Lusted, Head of Corporate Healthcare Development at AXA PPP healthcare, said: “Money worries have become more than a mild distraction amongst the UK workforce… Almost a third of employees already spend up to 15 minutes a day worrying about their finances so it makes sense to allow them to use that time to address these issues – with the boss’s blessing.”

The most pressing concern for most is repaying debt or bills but One Advice can help you with that. We can make your debt more affordable to you with one of our debt solutions, such as a debt management plan. Not only will this ensure that your debt repayments are affordable to you but will also include expenditure for your bills meaning these will be accounted for.

Many people think that the idea of reality of becoming debt free is a long far-distance dream, but you can actually do something about it today! Making simple changes means you can get on the path to your debt free future, and the sooner you start thinking about your finances, the sooner you can be debt free. Two debt free tips that you can use today are:

• STOP SPENDING: Obviously we don’t mean that you need to stop spending money altogether, that would be impractical and your financial goals have to be realistic. But the idea is that you stop spending on frivolous items that you don’t really need.
  Start small and cut down on one takeaway a week or sacrifice a night out for a cheaper night in. To become debt free you will have to make some sacrifices but think off all that additional income you will have to play with once your debts are paid off.
  Now that you have stopped spending you should be able to get a true picture of your outcome. Start to be organised with your finances and understand the true amount of money you are paying out on a monthly basis. Don’t forget to include essential expenses which you pay for with your income, such as rent, mortgage or utility bills, as well as more day-to-day expenditure such as food shopping, prescriptions and petrol costs.
• GET DEBT ADVICE: Sometimes the road to debt freedom cannot be one travelled alone. This is not a bad thing as there are a number of reputable debt advice companies out there who can help you sort your finances and get debt free.
  You may find the best way to be free of your debts is through an IVA. This is a legally binding debt solution between you and your creditors and means you can typically be free of debt in 60 months.
  One Advice have a team of ethical debt experts who are more than willing to help. So fill out the Quick Enquiry Form on the right hand side of this page for a free callback or call us now on freephone 0800 048 1752.