One Advice | Bankruptcy, IVA & Debt News

There are a number of reasons why you need debt advice, and people come to One Advice for help and advice about their debts due to a number of different reasons. But the great news is that help is at hand, no matter how impossible your debt situation may seem there are debt solutions available.

Here are 3 reasons why you may need debt advice:

1. Unemployment: Since the begging of the credit crunch the number of people unemployed or facing redundancy has increased. Losing this income combined with little savings means that people can soon find that they are struggling with an increasing amount of debt that they simply cannot afford to pay.
2. Debt Management Problems: Many people struggle with juggling multiple debt repayments which are due multiple times of the month and many tend to ignore these problems in the hope that they will go away. In reality we all know that burying our heads in the sand will not work when it comes to dealing with debt management problems.
   The sooner you contact a professional financial management company, such as One Advice, the sooner you can get help with your personal debt management problems and solve them with one of our debt solutions which will be tailor-made for your circumstances.
3. Change of personal circumstances: As well as unemployment, there can be a number of personal reasons why you may need debt advice and why your finances get too much to handle. For example, you may be out of work due to illness and statutory sick pay means you are earning far less than your usual income. Divorce and separation can also be a very stressful time both personally and financially as you may find that you cannot fund your existing lifestyle.

No matter what the reason you need debt advice, there is no need to despair. A good financial management company will be understanding about the situational changes which have caused you to need debt advice and will do their best to ensure that a suitable debt solution, whether is be an IVA, Debt Consolidation Loan, Debt Management Plan or Bankruptcy,  can be found for your debt problems.

When you are struggling with debt, you may be thinking of ways in which you can pay off debt without a loan. Many people do go down the debt consolidation route but then find it a struggle to make this new loan payment when debt starts to build up on their consolidated credit cards once again. So how is it possible to pay off debt without a loan?

The first step is to make sure that you take expert debt advice. Talking to a professional about your debt means that you can benefit from their expert opinion and become more aware of the debt solutions which are on offer. If you are looking to tackle your debts but want to pay off debt without a loan, here are a number of ways which you could do that:

Cut your outgoings. Perhaps you are struggling to repay your debt because you are overspending in other areas. Working out your credit crunch luxuries and cutting back on these non-essentials really does mean that you could save a small fortune over the course of a month.

Think of places where your money regularly goes: takeaways, meals out, gym membership, nights out etc. Once you have identified the key areas where you spend the most money, this could make a big difference to your ability to repay your debts and manage to pay off debt without a loan.

If your outgoings are already cut back to the limit and you still find that your debt repayments are unaffordable, you need to see what debt solutions are on offer and how they can help you:

Debt Management Plan: This is an informal repayment agreement between you and your creditors where you agree to make smaller payments towards your debts over a longer period of time. Although it will take you longer to become debt free, your payments will be affordable to you.

Individual Voluntary Arrangement (IVA): An IVA is best suited to those with high levels of unsecured debt, typically over £12,000, and are struggling to repay their debts.
Like a debt management plan, you can take advantage of reduced monthly payments but with one big difference, an IVA is a legally binding contract and allows a certain amount of debt write off. You commit to making monthly payments towards your debts, based on how much you can afford after your other financial commitments have been accounted for over. On successful completion of the IVA, typically 60 months, any unpaid debt will be written off.

For further advice about how to pay off your debts, speak to one of our debt advice specialists on 0800 048 1752.

When you are looking at your debt solutions, you may wish to understand the difference between IVA and Debt Management. Each of these are potential a debt solution for those struggling with repayments but it is important that you are aware of the difference between IVA and Debt Management, and which of these two options would be a better debt solution for you:

Debt level: An IVA is typically only suitable for larger levels of unsecured debts of £12,000 or more. Debt Management is more suitable for those with smaller debt levels.

Type of agreement: An IVA is a legally binding agreement between you and your creditors and, once the IVA has been agreed, you are both bound by it. Failure to keep to the terms of an IVA may mean that your creditors can declare you bankrupt.

On the other hand, Debt Management is a much more informal agreement and the terms of your plan can be more flexible if your circumstances change.

Length of agreement: An IVA is typically a 60 month repayment plan where you pay what is affordable over the agreed period of time and any unpaid debt will be written off on completion of the agreement. Debt Management offers no debt write-off and you must repay your debts in full.

Debt Write Off: As mentioned above, an IVA will write off the debt that is unaffordable to you on completion of the agreement. This is the main difference between IVA and Debt Management, as with Debt Management all of your debt will be repaid to your creditors.

Debt Management Plans and IVAs are not the only debt solutions available, and the right one for you will be dependant on your situation. For further information from one of our expert debt advisors, call now on 0800 048 1752.

Not only have takeaways become the victim of the credit crunch, but it seems as though more cash-strapped Brits are spending their Saturday nights at home as their disposable income is on the decrease.

According to a new survey by Halifax Home Insurance, 60% of those polled now spend Saturdays nights at home with friends and family rather then go out to restaurants or for an evening at the local pubs and clubs.

84% have admitted that the change in weekend spending habits is due to an active effort to try to manage debt levels as they struggle against the credit crunch and soaring household bills. Many are willing to share debt free tips as 73% said they plan to share money-saving ideas with friends and family.

Paul Birkhead, of Halifax Home Insurance, said: “They say Brits are at their best when times are challenging, and our research clearly shows we’re being resourceful in watching the pennies while looking to have a good time – and it’s bringing people together.”

If you are dealing with your debts, you may be torn between two possible debt solutions: IVA or Bankruptcy. But how are you supposed to know which one of these debt solutions is right for you? What makes you suitable for an IVA or Bankruptcy (or an entirely different debt solution!) is dependant on your personal financial situation and could also be down to personal preference.

The best way to fully understand the differences between IVA or bankruptcy is to be sure that you get professional financial advice. One Advice can offer both of these debt solutions as well as their alternatives. With the advice of our expert debt advisors you can be sure to fully understand both the benefits and considerations of these two debt solutions, so call One Advice direct today on 0800 048 1752.

What are the differences between IVA and Bankruptcy?

Bankruptcy should always be seen as an extreme debt solution which should only be considered after all other debt solutions have been fully explored. If you declare bankruptcy, or are declared bankrupt by your creditors, you will lose control of your finances. If you are a homeowner you will more than likely lose your home.

An IVA is a repayment plan where you formally commit to making set repayments to your unsecured creditors over an average period of 60 months. Once you have successfully completed the IVA any unpaid debt will be written off, meaning that you are debt free. Your IVA payments will be based on what is affordable to you after essentials expenses, such as your mortgage, have been accounted for.

Is IVA or Bankruptcy the right debt solution for me?

The right debt solution for you is dependant on a number of different factors. Before deciding on IVA or Bankruptcy as your preferred debt solution it is essentials that you understand both the short-term and long-term consequences of both debt solutions.

Bankruptcy is more of a public declaration of insolvency as details about your bankruptcy will be published in your local newspaper. An IVA is more private although details are still available online through the insolvency register.

With bankruptcy you must hand over all financial control which means that your car or home could be sold in order to repay some of the debt to creditors. An IVA allows you much more control over your finances as you should still be allowed to keep your bank account and your home can be excluded from your IVA proposal (although you may have to release some of the equity in your home).

If your debts are less than £12,000 and you wish to avoid declaring bankruptcy, a debt management plan could be your preferred debt solution. You make reduced monthly payments to your creditors at a level which is affordable to you. So no matter what your financial circumstances One Advice can find a debt solution suitable for you.

Today in the UK, 1 person every 3.72 minutes will be declared insolvent or bankrupt. According to statistics by Credit Action, this equates to 386 people per day. For anyone who is struggling with debt problems, these statistics can make very scary reading. If you are considering your debt solutions, what bankruptcy disadvantages are there to consider and how do you know which debt solution is right for you?

It is important that you get specialist debt advice about the range of debt solutions which are available and remember that bankruptcy is not the easy option out of debt. There are many bankruptcy disadvantages that you need to consider as, although you effectively write off your debt, there are a number of reasons why you might want to consider an alternate debt solution:

• Social stigma: Declaring bankruptcy still has a social stigma attached to it and your details will be published in your local newspaper.
• Credit rating: Your credit rating will be severely damaged if you declare bankruptcy and although you may not care about your credit rating in the short term, it is essential that you consider the long term effects of any debt solution. Your bankruptcy will show on your credit history so getting accepted for any loans and mortgages is going to be very difficult, if not impossible.
• Job prospects: Certain careers are closed to bankrupts, so it is essential that you do your research so you do not shut yourself off to any future job opportunities.

These are just some of the reasons why you should carefully consider the bankruptcy disadvantages before you decide that it is the right debt solution for you. Remember expert help is at hand. One Advice can offer you professional and ethical bankruptcy advice covering a range of debt solutions, so not matter how little or how much debt you owe  to your creditors, call today on 0800 048 1752.

The economic downturn is at risk of catching many Brits by surprise, and we have been urged to recession proof our income. Fool.co.uk have released figures which show that 70% of the employed have less than 20% of their monthly income remaining after all living expenses have been paid for.

This could lead to many seeking debt help and advice, especially as unemployment has been predicted to rise by 200,000 by the end of 2008. Many of us need to take better control of our finances, especially as one in eight people are currently spending more than they earn.

David Kuo, head of personal finance at Fool.co.uk, said: “We are only in the early stages of a recession so we have yet to feel the full impact of the economic downturn. Consequently, it is important to tackle our finances head on now before it is too late to do anything about it.

Tips to Recession Proof Your Income

1: Save More- With the risk of unemployment on the increase, it is essential that those who are in employment begin to save more of their salary. Challenge yourself to save a certain amount each month and put this in a high-interest savings account.

2: Spend Less – To compliment the above tip to recession proof your income, it is essential that you are spending less on a monthly basis. This might mean cutting back on treats, such as glossy magazines or the morning shop-bought coffee.

3: Examine Your Debt – You might find that points one and two are almost impossible as you have a high percentage of your outcome going out on your unsecured debt. If you are struggling and have began missing payments then it is essential that you seek expert help ASAP. One Advice are a leading debt solutions provider and we can help you reduce your outgoings to your debt.

Take the 1 Minute Debt Test to see which debt solution is right for you.

Christmas tends to be a time of year where we forget how to budget and any sense of keeping track of our expenses seems to go out of the window. However, come the New Year you could be stuck with high credit cards bills detailing purchases you can’t even remember what you spent. If this is you, it is time to nip this habit in the bud so you don’t spend January wondering how you will ever become debt free.

But don’t panic if you already feel you have started the festive seasons by overspending, there are still a number of ways to have a credit crunch Christmas where you can cut unnecessary Christmas costs, such as:

1: Channeling your creative side: For those of you who are arty or feel as though you are neglecting your creative side, Christmas can be the perfect time to channel this talent by making your own Christmas gifts, cards, wrapping paper, gift tags etc. It may take a little forward planning but your friends and family will appreciate the effort you have made and it is far more personal than anything you can buy in the shops

2: Plan your Christmas food shop: There is no easier way to have a debt-free, stress-free, credit crunch Christmas than by planning in advance. There are a number of websites where you can check the prices of popular ingredients and use this to plan where you are going to do your shopping.
You may also be able to take advantage of online voucher codes by shopping online but watch out for additional delivery costs and remember to book your delivery slot as soon as you can so your groceries can be delivered as close to Christmas Day as possible, no-one likes a mouldy sprout!

3: Avoid the High-Street rush: Unless you are looking for something in particular, one way to have a credit crunch Christmas is to avoid the High Street altogether. You have better chance of finding the best deals online and there are a number of online comparison tools which can assist you in making sure you are getting the best deals. Don’t forget to see if there are any discount codes you can use or whether you can get cash back on your purchases.

4: Don’t undo your hard work in the sales: If you have got through a credit crunch Christmas pretty much unscathed, don’t undo your hard work and let the sales lead you seeking debt advice. Remember to shop sensibly in the January sales and make sure you only buy items you really want and cannot do without.

5: Don’t be in denial. If you are reading this and have already overspent over Christmas, there is no need to panic. One Advice are here to help you with any financial struggles you may be going through. No matter how bad your debt problem has got there is a debt solution, such as an IVA, debt management plan or even bankruptcy.
Don’t bury your head in the sand, contact one of our specialist debt advisors now for free advice by filling in the enquiry form to the right of this article.

There has been a surge in the number of discount vouchers which are being used as Brits sweep the web in order to save a little bit more on big-ticket items, household goods and their weekly shopping bills. Vouchercodes.com has revealed that there are over 400 times as many people using discount vouchers on their shopping as there were five years ago.

According to their research, customers have accessed over 14 million voucher codes this year, compared to just 35,000 in 2004. Around half of the codes downloaded are then used, and this number is set to rise as we look at ways on how to avoid Christmas debt to ensure that we start 2010 as debt free as possible.

This rise in voucher code usage shows how the economic climate means we want to shop as smart as possible, ensuring that we get the best deals at the best prices. Many High-Street stores and restaurants have turned to money-off vouchers to attract extra custom during the credit crunch, which has help to fuel this boom in voucher usage.

And now, as Christmas decorations adorn shop windows and stores try as hard as possible to get us in the festive mood and spending, it can be hard to resist Christmas deals and promotions. Many gift sets and gadgets are on 3-for-2 which means you can save a little extra, but shopping online, looking for voucher codes and combining it with cash-back sites where possible is a sure way to take full advantage of Christmas discounts.

Danny Watson, from website Voucher Alerts, comments: “There has been a huge rise in the number of voucher codes being released by retailers in the run up to Christmas with more and more trying to entice customers to buy… and lots of retailers have run with similar ideas which when combined with the discount codes they are releasing can save you a huge amount off of your Christmas shopping bill.”

The credit crunch is hitting hard with the average Brit struggling to cope, as their monthly outgoings soar by an average of 26% during the past two years alone. According to research carried out by insurer Combined Insurance, this hike is being proportioned to higher housing and energy costs.

The average person is now spending £1,281 a month on bills and general costs of living, which has shot up from £945 in June 2006. This research shows that, on average, people are spending around a third more on rent and mortgages than they were two years ago. Everyday bills such as television subscriptions, electricity bills and water rates have rose by an average of 30%.

Those with children have been hit the hardest, as families have found a 77% increase in the average child care costs and other spending, such as clothing, has increased by 37%.

Director of Combined Insurance, Nigel Brittle, said: “The many cost of living hikes are taking their toll on the monthly budget and many Britons are living on the edge with their finances.”

Because of this increase, it is inevitable that households are going to have to cut back on their spending in some areas. This research reports that people are spending 8% less on insurance and 7% less on telephone and broadband costs.

Are you looking at how to avoid bankruptcy? If you are struggling with your debt and feel as though you are slipping closer to declaring bankruptcy, it is useful to know that there are several ways to heave your finances back on track and avoid losing your home and assets as an effect of bankruptcy. The good news, you’ll be surprised at how simple some of these how to avoid bankruptcy tips are:

1:Work out your outgoings – Many people titter on the edge of a big financial problem due to lack of knowledge about their own personal finances. Make a list of your essentials outgoings every months, making sure that you include all of your debt and essential payments such as mortgage or rent.
Then you need to consider additional daily expenses which are unavoidable such as transport and food costs.

2: Reduce your outgoings – Now you know the amount that is leaving your bank account each month, it is time to reduce this to as small a sum as possible.
Keep a money diary and ask your family members to join in by keeping a note of everything that they spend. You will soon spot key areas where you can reduce your outgoings, and this small change in lifestyle could be enough to make essentials expenses more affordable for you and allow you to avoid bankruptcy.
In order to successfully avoid bankruptcy you may need to make bigger lifestyle changes such as ditching the expensive hobby or extra-curricular activity. This may be hard to do on the face of it but remember you are doing this for a good cause; allowing you to avoid bankruptcy whilst keeping control of your finances and your assets.

3: Maximise your income - Now you have got your outgoings down to a minimum, it is time to maximise your income. Consider taking on an extra job and use these funds to pay off your debts as quickly as possible. Or sell your unwanted or unneeded items online or take a trip to the local car boots sale.
See if you are getting all the benefits you are entitled to. You may be surprised to discover that you are entitled to more than you thought and this all goes towards learning how to avoid bankruptcy.
Use any additional income to pay off your debt and you should soon see your balances go down.

4: Get bankruptcy advice – Don’t bury your head in the sand and hope that your personal finance problems will go away, they won’t. Even if you think that bankruptcy is the only solution for you it is important that you get professional debt advice as you may find that bankruptcy is not the only option for you.

One Advice have a dedicated bankruptcy service who can guide you through the entire bankruptcy process from filling out your court documents to opening a bankruptcy bank account.

We also offer a variety of debt solutions which allow you to avoid bankruptcy, such as a debt management plan or an IVA. The only way to see which debt solution is right for you is to seek expert advice. Contact the One Advice team today on 0800 048 1752 or take the 1 Minute Debt Test to discover your debt solution which may allow you to avoid bankruptcy.