One Advice | Bankruptcy, IVA & Debt News

A third of UK pensioners are facing mortgage debt, according to figures released by impartial.co.uk. Their results show that the average 55-year-old homeowner still owes £55,046 to their mortgage lender and almost eight years left of their mortgage repayments.

Worryingly 1.4 million still have at least ten years left on their mortgage when they reach retirement age, meaning that many are going to have to seek advice about how they can afford to pay of their mortgage after they are no longer earning an income from employment.

Marketing director at impartial.co.uk, Karen Barrett, said: “It is crucial that the next generation of homeowners do all that they can to be debt free earlier – as this will give them much more financial freedom to prepare for retirement.”

Christmas is a time of joy and a time of giving –but if you are not careful then the weeks and months afterwards could be spent worrying about your ideal debt solution and how you are going to make ends meet.

It can be very easy to get wrapped up in the Christmas spirit and many of us may find that we stretch ourselves further than we would like and rely on credit cards and store cards in order to fund the festive season. CreditExpert believe that almost one in five households relied on credit cards last Christmas, with many others having to take out personal loans or extend their overdrafts.

But you don’t have to take on extra Christmas debt and worry about 2010 being filled with you taking on debt advice in order to repay those Christmas gifts which have long been forgotten about  – there can be another way to afford Christmas!

1: Avoid Christmas Debt – Okay, this might sound like an obvious suggestion but keeping your debt levels in check is the only way that you can avoid the Christmas debt-hangover. However, it might take a little planning…

2: Learn how to save - Even if you can just save additional Christmas spending money from one or two months worth of wages it can really make a difference to your finances. For example,  if you need an extra £200 over Christmas, saving £50 from October and £50 from November means that you are already half way to having no Christmas debt.
The longer period you can do this over, the smaller amount you need to save each month meaning that you can avoid Christmas debt with ease.

3: Up your income – Now is the time to maximise your income and there are a number of ways that you can do this to avoid Christmas debt…

• Switch your supplier – The rising cost of living means that you could be paying over the odds with your utility bill suppliers. Consider freeing up some of your cash by switching providers. You could save yourself £100s by doing so and this can go towards avoiding Christmas debt.
• Sell unwanted items – Use this as an opportunity to clear your house of items that you don’t need. Gather together these items (and I’m sure they’ll be a few unwanted presents from last Christmas there!) and auction them online or take a trip to your local car boot sale.

What to do if you end up with Christmas debt….

It is inevitable that, no matter how hard we try, some of us will have unknowingly overspent over Christmas or in the January sales and are left wondering how they are going to repay this debt. If you are struggling with your finances there are a number of debt solutions which can make your debt easier to manage.

An IVA is suitable for those with debts over £12,000 who cannot afford to repay their debt. Your unaffordable debt could be written off in as little as 60 months and you can avoid declaring bankruptcy.

If you are struggling with lower levels of debt, there is still a debt solution to suit you. Our debt management plans are tailored to your individual circumstances so you can benefit from one lower monthly repayment.

For more free debt advice, call One Advice today on 0800 048 1752.

You may have heard about IVAs (Individual Voluntary Arrangement) and how you could become debt free in as little as 60 months, but can you really write off debt with an IVA?

You may worry that having unaffordable debt means that bankruptcy is the only debt solution available to you, but this is not always the case. Many people find that they are eligible for an IVA which allows them to avoid bankruptcy and write off a percentage of their unaffordable debt.

How Can I Write Off Debt with an IVA?

An IVA allows you to repay as much of your unsecured debt as you can over a typical 60 month period, after which any unpaid debt can be written off. The payments which you need to make to your IVA are dependant on your own set of unique circumstances and will be at a level which is affordable to you.

An IVA offers  a percentage of debt relief and also allows you to avoid some of the disadvantages of bankruptcy. For example, an IVA should mean that you will not lose your home, although you may have to release some equity.

Remember, your financial circumstances are unique to you and the only way to discover if you are suitable for an IVA is to get professional IVA advice. One Advice have a dedicated IVA team who can see if an IVA is your best option or whether you are more suited to an alternate debt solution.

For immediate IVA advice, please get in touch by filling out the Enquiry Form to the right and we will give you a callback to discuss whether you will be able to write off debt with an IVA.

Credit card holders are being stung by their issuers, as comparison website Moneysupermarket reveal that the APR (annual percentage rate) has gone up on nearly a third of all credit cards in the past 12 months.

The main culprits who have upped the APR for their existing customers are Egg, Capital One, Lloyds TSB, MBNA and Barclaycard. Egg have upped the APR for 11% of their cardholders. More worryingly, 27% of cardholders were unaware whether their APR had increased on their credit cards, meaning that more need help to manage debt to ensure that their finances do not spiral out of control.

Head of credit cards at Moneysupermarket, Steve Willey said: “Firms writing to customers telling them their APR is about to increase will only exacerbate the debt problem in this country.. Increasing the interest on purchases will only make those rising food, fuel and mortgage bills harder to pay, and lengthen the time it takes people to clear their debts.”

If you are struggling to clear your debt as you find your credit card payments unaffordable, give One Advice a call on 0800 048 1752. Our expert debt advisors will help you to go through your finances to find a debt solution which will make your credit card payments much more affordable.

There are various types of debt solutions available, each of which is designed help those struggling with debt. The right one of you is dependant on your individual circumstances, and a debt solution which is right for you may not be suitable for someone else.

If you are in debt and looking at what debt solutions are available, the list of solutions which you find may be a bit daunting and you may feel as though you don’t quite understand which of these available debt solutions is right for you; this is where One Advice come in. We can offer you personalised debt advice which can act as a starting block to help you decide upon the right debt solution.

Below offers a debt solutions comparison list of all the main types of debt solutions you will hear about. But, before deciding what to so, please ensure that you get expert debt solutions advice. We could help advise you on which type of debt solution you are suitable for, and which of these available debt solutions might be right for you.

Debt Management Plan
These Debts solutions are available for…. This debt solution is best suited to those who are struggling with debts under £12,000 and are looking for a way to make their monthly outgoings more affordable. It allows you to repay your debts in full over a longer period of time.

Debt Management Plan as a debt solution… A debt management plan is an informal agreement between you and your unsecured creditors which can involve a debt management company, such as One Advice, asking your creditors to accept a reduced monthly payment towards your unsecured debts. This means that you will be repaying your debts back at a level which is affordable to you.

Considerations of a debt management plan… Although making a lower monthly payment does not sound like a consideration to begin with, it is important to note that it will take you longer to repay your debts in full, and some creditors will not freeze additional interest or charges on your debt.

Individual Voluntary Arrangement (IVA)
These Debts solutions are available for…. As a debt solution, IVAs are most suitable for those who are struggling with high levels of unsecured debt (£15,000) who cannot see themselves as ever being able to repay this debt and are struggling with their repayments. As a debt solution, an IVA is suitable for those who wish to avoid bankruptcy and can commit to making reduced payments.

IVA as a debt solution… An IVA is a formal legally binding contract between you and your unsecured creditors where you agree to repay your debt at a level that is affordable for a typical period of 60 months. Any debt which is not repaid upon successful completion of your IVA will be written off.

Many homeowners opt for an IVA over bankruptcy as the sale of your home is unlikely, although you may be required to release some of the equity in your home.

Considerations of an IVA… You must commit to making agreed monthly payments for the full term of the IVA and failure to meet these repayments means that bankruptcy proceedings could be started by your creditors.

This gives you only a sample of what debt solutions are available as you may find that your circumstances are more suited to bankruptcy or a debt consolidation option. If you are looking for further information about the type of debt solutions available then please do not hesitate to get in touch with our professional One Advice debt advisors on 0800 048 1752.

**This post has been featured in the Carnival of Savings.

If you can’t keep up with your unsecured debt repayments and you feel as though you are struggling to repay your debt, then professional debt management advice may help you to retake control of your financial situation.

A professional debt management plan is an informal agreement between you and your unsecured creditors. A professional debt management company, such as One Advice, will liaise with your creditors on your behalf. We will negotiate lower monthly payments with your unsecured creditors.

We would calculate the amount that you can afford to repay to your professional debt management plan based on your income and expenditure. As we tailor the monthly payments to you, you should find that your debt repayments become affordable although you will be repaying that debt over a longer period of time.

During process of getting you set up with a professional debt management plan, you creditors may also agree to freeze or reduce interest and charges. This cannot be guaranteed but we will try our best to make this happen for you.

Debt management involves talking to your unsecured creditors, explaining to them that you can’t keep up with your repayments and asking them to accept lower monthly payments, meaning you could repay your debts in a way you can actually afford. Some creditors may agree to accept reduced monthly payments for a certain amount of time. They

So, if a debt management plan sounds like it could help you deal with your current  financial difficulties, you need to decide whether it is time to ask for professional debt management advice. Along with our service, One Advice will also take care of any creditor letters and phone calls.

We will build an ongoing relationship with yourself by performing a periodic review of your financial situation, as your circumstances could begin to suit another financial plan better or you may be able to increase your creditor repayments.

Please contact one of our professional debt management advisors on 0800 048 1752 for further advice about our debt management plans.

The holiday season is a leading cause of debt for many people.  It’s easy to get caught up in all of the great sales and the desire to make loved ones happy with material things.

The truth is, you don’t have to get into debt to enjoy the holidays.  Put away the plastic, and try these ideas:

Set a budget. Set a maximum dollar amount you can afford to spend on Christmas gifts.  Note that I said “can afford” not “want to afford.”

Start saving now. There are still several more paydays before the holidays, so start putting away the extra money now.  Look around your home for extra cash – gather up all your loose coins, sell a few items, or find a way to make some quick money (babysitting, pet-sitting, personal shopping, etc).  Put all that found money toward your Christmas shopping.

Make a list.  Spend some time making a list of all of the people you want to buy gifts for.   Then make a list of their interests.  If you know these two things, you’ll be able to make smarter choices with your gift purchases.  There’s nothing harder on a budget than realizing you’ve forgotten someone and dashing off to buy something at full price.

Shop all year round to get the best deals.   Watch for end-of-season clearance sales for special deals and catalog overstocks.  Procrastinators can still get some great deals in the final weeks before Christmas, but you’re taking a risk that the selection may not be as good.

Use the internet to find the deals.  There are hundreds of great blogs that do all the deal hunting for you – just search for what you want and you’ll probably find a good deal.  Be sure to check out company Face book pages and Twitter profiles because many companies are using social media to promote deals.

Consider a homemade Christmas.  Sometimes the best gifts are those that are homemade – such as food, crafts, or photo gifts.  The more creative you are, the better!

‘Debt Free Shopping’ is a guest post kindly provided by Christina Brown who is the author of Northern Cheapskate, a frugal living blog dedicated to freebies, coupons, and money saving ideas.

If you wish to do a guest post for this blog, please feel free to comment below and I will get back to you.

An MP had claimed that Government failure to stop reckless lending by financial providers has contributed to people facing unaffordable debt levels, which could lead to some declaring bankruptcy or opting for an IVA.

The East Anglian Daily Times reports that David Ruffley, MP for Bury St Edmunds, has commented that there have been failures in regulating the financial sector. In response to the rise in insolvency figures, Ruffley commented: “This government has a lot to answer for – it didn’t keep a grip on the banks and credit card companies, which let unsustainable credit rip at a totally unsustainable rate.”

A Debt Management Plan is specially designed for those who are unable to meet their unsecured debt repayments. A debt management plan allows you to make a reduced monthly repayment to your unsecured lenders or creditors. The monthly repayment will be tailored to your unique circumstances, dependant on the amount you can afford after your income and expenditure have been taken into consideration.

There are number of key debt management benefits which you may want to consider when deciding upon a debt solution. These include:

1. One reduced monthly payment to make: The two main key debt management benefits is that a) you lower the amount you need to repay to your debt, and b) your unsecured debts are all consolidated into this lower monthly payment. This means that you don’t have to worry about making payments to multiple creditors at different times in the month; all your unsecured creditors can be paid with your debt management plan.

2. We will deal with your creditors: One of the most stressful things about falling behind with your debt repayments is the constant flow of calls and letters from your creditors demanding payments which, realistically, you cannot afford. A debt management plan removes this worry as we will deal with your creditors on your behalf.

3: Better budget management: A debt management plan allows to to handle your budget much more effectively. You will know exactly how much you will have to pay towards your debt management plan and the amount which is due. This allows you to effectively budget your spend and, as the debt management plan has been tailored to your personal financial circumstances, it will be affordable.

Whether of not you can take advantage of the key debt management benefits is dependant on your individual circumstances. Call One Advice now for free debt management advice from one of our personal debt management consultants – 0800 048 1752.

IVA is short for Individual Voluntary Arrangement. An IVA can be a successful debt management solution to those with debts over £12,000 who feel as though they cannot afford to repay their debt in full yet wish to avoid some of the long term implications attached to declaring bankruptcy, such as losing their home.

If you are struggling with unmanageable debt then it is essential that you get professional debt advice, as this expert guidance should be able to offer you more information about the debt solutions available and whether an IVA is the right debt management solution for you.

There are a few fundamental points which you need to understand about IVAs. First of all, they are only available for resident of England, Wales and Northern Ireland, so people based in any other country are automatically not eligible for one. If you are a resident of Scotland, your similar equivalent will be a Trust Deed which can offer you similar benefits to an IVA and One Advice can offer you more information about these.

An IVA is only suitable for those with debts over £12,000 over multiple creditors. These debts must also be unsecured, so many include debts such as credit cards, store cards, overdraft and catalogue debts. Secured debts, such as mortgage, cannot be included in your IVA but payment for these will be taken into consideration when working out how much you can afford to repay to your creditors through the IVA.

You must be able to commit to repaying a reasonable but affordable monthly payment to your creditors, therefore you will need to be employed in some capacity. It is essential that you keep up ton date with your IVA repayments or else your creditors can declare you bankrupt.

An IVA is a legally binding agreement which allows you to repay your creditors a lower monthly payment to your debt over a typical time duration of 60 months. The IVA means that you can resolve your debt problem by paying only what is affordable to you over the specified time-frame, and agreed by your creditors. On completion of the IVA you will become debt free.

It is essential that, if you believe an IVA is the right debt management solution for you, that you do your research. You need to fully understand what being on an IVA entails and that you are aware of all the potential benefits and considerations of the agreement.

Economic concerns have filtered down to the young, with almost a quarter of children say that they fear getting into debt and possibly needing to use financial products like a Debt Management Plan or an IVA.

Research from Abbey Banking indicates that young people in the UK are worried about growing up into debt, and that more were worried about being poor than falling out with their friends! Abbey director Steve Shore comments that this “news is fairly extreme and shows just how much information children absorb.”

1 in 10 children, in the study of 300, are also concerned that they will never be able to afford to get a first time mortgage and would fail to get onto the property ladder. Mr Shore goes onto comment that although this news is concerning there are things that can be done, such as teaching children the importance of good financial skills.

If you are struggling with debt and are going through the process of considering your debt solutions, you may be confused about what your options are and how to understand the advantages of bankruptcy or IVA.

Both bankruptcy and IVA are debt solutions designed for those who are severely struggling to repay their debts, but both bankruptcy and IVA offer distinct advantages from each other. The right solution for you is dependant on a number of different personal circumstances.

The best way to understand the advantages of bankruptcy or IVA is to get personalised Bankruptcy or IVA debt advice as this will give you a deeper insight about how each of these debt solutions could offer advantages to you.

Bankruptcy Advantages Over IVA

Debt Free in a Shorter Period. Most people who enter into bankruptcy will be discharged after one year, although it is worth knowing that you may still have to make contributions to your bankruptcy for a total of three years and if a Bankruptcy Restriction Order (BRO) is issued you may be subject to bankruptcy restrictions for up to fifteen years. This debt free period is in contrast to that of an IVA which has a typical term of 60 months.

IVA Advantages Over Bankruptcy

Keep your home. Many homeowners opt for choosing an IVA over bankruptcy because it is unlikely that you will have to lose your home as part of the arrangement. Although you should be aware that you may have to release some of the equity in your home at some point during the IVA term.

Less Social Stigma. Bankruptcy is often dismissed as a debt solution by many as it is too much of a highly public process where your details will be published. IVA has the advantage over bankruptcy by not being advertised anywhere, although both debt solutions are viewable on the Insolvency Register.

Both Bankruptcy or IVA will stay on your credit file for six years, and those who have been made bankrupt may have to admit this on certain application forms.

This provides you with just the basic advantages of Bankruptcy or IVA, but please feel free to contact our expert team of debt advisors today on 0800 048 1752.

If you are looking for a debt management solution you may have heard about debt management plans and wonder how they can help you to deal with your debt. For personalised advice about our debt management solutions, please contact One Advice now on 0800 048 1752.

A Debt Management Plan is an informal debt management solution which allows you to make a reduced payments to your unsecured creditors. The payment that you need to make will be determined by your own set of unique financial circumstances, such as the amount of income that you have, living costs and the amount of debt thqt you have. From this information a debt management compay, such as One Advice, can determine how much you can afford to make to your debt management solution.

There are a number of advantages with a debt management plan. For example, you get to make one single payment which will cover all of your unsecured debt. This should make it easier for you to manage your finances and budget accordingly. As this type of debt management solution is not legally binding between you and your unsecured creditors, should you wish to pay off more of your debt and become debt free quicker – you can!

As with any type of debt management solution, it makes sense that you also understand any disadvantages which may occur. With a debt mangement plan you will be making a reduced payment to your debt, therefore it will take you longer to repay the debt in full. But remember that your debt will be more affordable to you on a monthly basis.

There are a number of debt management solutions which are designed to make your debts more affordable to you, such as an IVA or debt consolidation loan. The right debt management solution is dependant on your financial situation so always seek expert debt advice before deciding upon a debt solution.