One Advice | Bankruptcy, IVA & Debt News

Knowing if debt management is the right debt solution for you can be tricky. The right debt solution for you can be dependant on a number of different factors, such as your income, outgoings and level of unsecured debt. If you are looking to reduce your monthly outgoings and simplify your finances, a debt management plan could be the debt solution to help you do just that.

A debt management plan allows you to consolidate multiple unsecured debts into justa single monthly payment. This can make managing your debts much easier as you no longer have to worry about making several payments to different creditors throughout the month.

With a debt management plan you will benefit from reducing the amount of debt that you need to repay on a monthly basis. However, you will have to repay these debts over a longer period of time and some creditors will not freeze additional interest and charges on your debt.

Your level of debts is not the important factor when deciding if debt management is the right solution for your debts, it is more about your ability to repay your outstanding debts at a level that is affordable to you. Typically if your debts are over £12,000 you may find that your circumstances make you more suitable for an IVA. Like debts management, an IVA allows you to make one affordable monthly payment but offers you the additional advantage of having an element of debt write-off and becoming debt free in a typical period of 60 months.

For more information about whether debts management is right for you, fill in the Quick Enquiry Form to the right of this page.

2008 was undoubtedly the year of financial doom and gloom, so the fact that ‘credit crunch‘ has been named the Word of the year by Countdown’s Susie Dent is no surprise to anyone.

Dent comments: “Specialized vocabulary is now firmly on the British public’s radar. As fears of a recession escalate, it may be productivity of the linguistic kind that is the safest bet. ‘Credit crunch’ is an example of an established term – it was already in currency back in the 1960s – being resurrected as circumstances change”.

There has also been further entries which Dent sees as important words of 2008 when it comes to describing the UK financial crisis, these include:

• Ninja Loan – A loan given to someone who has ‘No Income, No Job, No Assets’.
• Jingle Mail – Sending house keys to the mortgage company because of repossession.
• IPOD – An acronym for ‘insecure, pressured, overtaxed, and debt-ridden’.
• Homedebtor – A homeowner whose mortgage is so large that they are unlikely to ever pay it off.
• Going Underwater – Falling into negative equity.

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.”

Want an easy way to get debt advice and take control of your personal finances? If you own an iPhone or an iPod Touch you should be taking advantage of a number of free financial applications which are all designed to help you get the most of your money.

iXpense - Are you one of those people who is unsure about where their money goes at the end of the month? The free version of the iXpense could help you keep track of your daily expenses, and because you are on the move you have no excuse of not updating an online money management tracker.

It splits your spend into categ0ries where you most spend your money and the application will highlight key areas where you can cut down on frivolous spending. Again, use this extra cash to repay your debts that little bit quicker.

ATM Hunter – How annoying is it to find yourself strapped for cash and the only obvious solution is a standalone cash machine which charges you for the privilege of withdrawing your own money?

Well, this costly problem could soon become a thing of the past with the ATM Hunter application which will find the closest ATMs in your area using GPS. Even if you don’t mind paying £2 a time to withdraw your cash, you might be staggered to know that this could cost you over £104 a year  which you could put towards your debt repayments.

Currency – Not sure how much dollars you can get for your pound whilst away? Don’t pay over the odds due to confusion with fluctuating currency exchange rate. This app has access to over 100 countries, so no matter where abouts in the world you are, you can get the true purchase price instantly.

Know any more apps to handle your finances? Or are there some apps which cost a little to purchase but have changed the way that you handle your debt? Please share with our readers and comment below.

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.

Many debt problems start with individuals struggling to manage a number of different creditors at once. Many find that having to make multiple payments to multiple creditors at multiple times of the month very confusing, which leads to missed payments and interest and charges being added.

Getting debt consolidation advice could help; instead of making multiple payments to different creditors, debt consolidation allows you to make one lower monthly payment which covers all your creditors. There are debt consolidation options which involve taking out a loan but a better option for you could be a debt management plan.

A debt management plan is designed for those who struggle to deal with multiple unsecured creditors and find they are struggling to make payments. A debt management plan allows you to consolidate these debts into a single monthly payment. So although you will be repaying your debt over a longer period of time, you have the peace of mind knowing exactly when and how much your monthly debt repayment will be.

Sometimes interest and charges can be frozen with your debt management plan, although this cannot be guaranteed.

If you like the idea of consolidating your debt but have high levels of unsecured debt (typically £15,000 and over), an IVA could be a better debt consolidation option for you. It is a legally binding contract between you and your creditors where you agree to repay what is affordable for a typical period of 60 months. On completion of the IVA, any unpaid debt is written off.

As you can see there are a number of debt consolidation options which do not require any further borrowing. But we would always advise that you seek professional debt consolidation advice so a debt solution can be found which is right for your circumstances.

For expert debt advice and for more information about your debt consolidation options, call One Advice today on 0800 048 1752.

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.”