One Advice | Bankruptcy, IVA & Debt News

The number of people in large amount of debts is increasing all the time and more people are actively seeking out ways in which they can reduce their outgoings.

But overspending can often be the result of basic financial error, such as:

1: Taking out a credit card to pay off another credit card.
The problem here is that although you may start off with good intentions, it can be all too easy to start build up debt on both of these cards! You will be paying high rate of interests on both of your debts.

2: Missing payments.
Missing payments can cause a number of backlashes. For example, you will have a charge added to that debt as you have not paid it, you will have to pay the minimum payment as well as the next due payment next month and missing payments regularly will damage your credit rating.

3: Retail Therapy.
Often seen as the way to bring a bit of spark back into our lives during the down times, it can become a financial nightmare! You need to make sure that you can afford to treat yourself to that luxury item before you flex your plastic.

4: Not facing up to your finances.
It can be too easy to sweep your finances under the carpet and leave those Red Letters unopened. But if you are struggling then you need to regain control of your finances. The longer you leave it the more it will impact your financial future.

One Advice understands that the number of different products to help you with your debt can often seem confusing and you might not know where to turn. But we can offer you FREE help and advice on your debt and offer you potential solutions, no matter how bad your debt has become.

Please see our website www.oneadvice.co.uk or call our advisors today on 0800 048 1752.

Young people are apparently more likely to face the pitfalls of recession and the credit crunch, in comparison to older generations according to a study by the Chartered Insurance Institute (CII).

The CII report that the IPOD generation – Insecure, Pressured, Over-taxed and Debt-ridden – will suffer the effects of recession due to being both overprotected and isolated from financial services, as financial advice and products is not tailored to an IPOD’s needs.

This term covers young adults between the ages of 18 to 24. Over half have up to £10,000 of unsecured debts and a fith owe even more than this, meaning that many of them may need debt help in order to effectively manage their finances.

Trevor Matthews, CII president, said: “What is striking in this report is that Ipods possess the highest potential for appreciating the good value of advice and yet are not benefiting from it.”

Often, when coming across a range of debt solutions, you may come across the benefit that they can all consolidate your debt. But what does debt consolidation really mean and what is the difference between consolidation loan, debt management and IVA?

People often believe that debt consolidation can only come in the form of a loan and only a debt consolidation loan can be used to consolidate your debts into one lower monthly payment. But this is not always the case, as ‘debt consolidation’ also refers to any type of consolidation which allows you to combine your monthly unsecured debt repayments into one lower payment. This should make it easier for you to manage your debts as you only have to make one payment per month instead of separate payments to different creditors.

So, when deciding upon a debt solution it is important that you fully understand the difference between a debt consolidation loan, debt management plan and an IVA. The following gives you a brief overview of these differences, but for personalised debt advice about which of these solutions is right for you, call One Advice now on 0800 048 1752.

Debt Consolidation Loan – A Debt Consolidation Loan is a new loan which is taken out in order to pay off existing debts.  Many people opt for a debt consolidation loan as they find it makes managing their unsecured debts much simpler and easier to manage.
A key advantage of a Debt Consolidation Loan is that you can often benefit from a reduced monthly payments but it is likely that you will be repaying these debts over a longer period of time. It is important to note that a Debt Consolidation Loan is often secured against your home, so never agree to a loan if you feel as though you will fall behind on your debt repayments as you could lose your home to repossession. Always seek expert advice about a Debt Consolidation Loan before you agree.

Remember that not every debt consolidation option means that you take out a new loan:

Debt Management Plan – A Debt Management Plan is an informal, flexible debt solution which allows you to make lower payments towards your unsecured debts. Your monthly payment will be based on only what is affordable to you after your income and expenditure has been taken into account. Therefore you will still be able to keep a  standard of living and make a lower monthly payment to us which we will distribute between your creditors.
It is worth noting that a debt management plan offers no amount of debt write off so you  will continue to make payments to the plan  until your debts are paid off in full.

Individual Voluntary Arrangement (IVA) – An IVA is a legally binding agreement between you and your creditors, where you agree to make a single reduced payment to your unsecured creditors over a typical 60 month period, after which any unpaid debt will be written off.
Like a Debt Management Plan, you will be making payments which are affordable to you after your outgoings have been considered.

This is just an overview of the difference between consolidation loan, debt management and IVA, and we would always recommend that you seek professional information before deciding upon any type of debt solution.

It looks as though more first-time buyers are going to have to take better control of their debt management, as new research suggests that it could be 15 years before a first-time buyer loan agreement is reached, due to the time it takes to save for a deposit.

A poll by the Fair Investment Company revealed that the average first-time buyer only saves £1,668 a year. House prices are now at an average of £175,000 and many mortgage lenders are now looking for a 15% deposit.

Sharon Bratley, a chartered financial planner with Fair Investment Company, said: “My advice to prospective first time buyers is to save, save, save, our research shows that it could take years, so the earlier you start the better. It is also worth shopping around for a high interest savings accounts.”

The research also found that women would normally take longer to save for a deposit than men, with the average woman saving just £121 per month. However, if a male and female couple combined their savings, they could achieve a 15% deposit in just seven years.

A Debt Management Plan is a flexible, informal arrangement between you and your unsecured creditors where you agree to make a single reduced monthly payment towards your debts based on what is affordable to you after your income and other outgoings have been taken into account.

Your eligibility for a Debt Management Plan is dependant on a number of different circumstances, and the level of debt needed for a Debt Management Plan can differ. If you have unsecured debt levels over £12,000 you may find that an IVA is more suitable for your circumstances.

A Debt Management Plan is designed to make your debts more affordable to you on a monthly basis. We will negotiate with your creditors so you make the payments which are affordable to you. Some may agree to freeze interest or charges although this can not be guaranteed.

It is worth nothing that a Debt Management Plan offers you know no level of debt relief and you will have to repay all your debts in full. An IVA, on the other hand, allows you to only repay the debt that is affordable over a 60 month period; on completion of the IVA any unpaid debt will be written off.

The only way you can really see how you qualify for a Debt Management Plan is to get expert debt advice, and One Advice can help you with just that. Our specialist debt advisors will go through your individual circumstances and help you to find a debt solution which is perfect for you, for more information call now on 0800 048 1752.

Understanding the different debt solutions from a debt management company can be confusing. There can be a number of debt solutions on offer but it is essential that you fully understand the benefits which each debt solution can give you and what the advantages there are over alternate debt solutions.

The different debt solutions are specifically designed to help people with different kinds of debt problems, and the debt solutions you may come across include a Debt Management Plan, IVA, Debt Consolidation Loan or Trust Deed.

The advantage of there being a number of debt solutions means that it is likely that there is one to suit you, the downside can sometimes be knowing which one is the right one! This is where a Debt Management Company can help, they will take an holistic overview of your finances, take into account your incomings, outgoings and level of debt. From this information they will help you decide which debt solution can sort out your debt problems as quickly as possible.

One Advice can offer you a selection of different debt solutions but we would never over-complicate the situation for you. We will make the process as simple as possible  and, if you take one of our Debt Management Plans or IVAs, we will deal with your creditors on your behalf so you don’t have to worry about a thing!

If you wish to find out more about the different debt solutions from a debt management company, take the One Advice 1 Minute Debt Test to see what debt solutions options you have…

Council Tax debt has led to bailiffs visiting over 1.4 million homes over council tax debts in 2009, according to statistics obtained by the Conservatives.

There has been a 60% rise in the number of families being pursued for their council tax debt. And the sharp rise council tax bills is thought to be the reason why more and more people are failing to meet their council tax debt.  The council tax bill for an average home has gone from £688 in 1997 to almost double the figure at £1,414.

Along with the 1.4 million who have been paid a visit from bailiffs, over three million people received court summons from their local council over falling behind on their council tax.

Over the 2008-2009 financial year, 3,121,089 orders were issued in England and Wales alone; this is a rise of 700,000 in just three years. The Conservatives believe that above-inflation rises in council tax bill has led to millions of families struggling with their debts and in need of debt management help.

It is not just bailiffs that families need to worry about when falling behind on their council tax debt as many could face the risk of being declared bankrupt. 2009 saw over 1,500 people being made bankrupt due to their council tax debts.

The shadow secretary for communities and local government, Caroline Spelman, commented: “Three million households suffer the trauma of going to court due to council tax. One and a half million people now face a menacing town hall bailiff knocking at their door.”

Bankruptcy is the most extreme of all the debt solutions, and bankruptcy should only ever be used only as a last resort, once you have exhausted all the possible bankruptcy alternatives and have found no other way to deal with your unmanageable unsecured debt. For most people, this is not the best option for dealing with debts as there are many long term consequences of bankruptcy which cannot be avoided.

Therefore it makes sense to explore the alternatives to the bankruptcy process in the UK. This article is only designed to give you an overview to the alternatives to bankruptcy and we would always recommend that you seek expert advice. For free no-obligation advice about bankruptcy and the alternate debt solutions, please call One Advice today on 0800 048 1752.

Alternative to the Bankruptcy Process in the UK include:

Debt Management Plans: A Debt Management Plan will allow you to make repayments to your unsecured creditors with one low monthly payment at a cost you can afford. You make one reduced payment to us, which we will distribute to your creditors (the companies you owe money to).

IVA: An IVA is a legally binding contract, unlike a debt management plan which is an informal and flexible agreement between you and your unsecured creditors. This may sound a little concerning, but an IVA can offer you real benefits over a debt management plan such as your unaffordable debt can be written off on completion of the IVA.

Valentine’s Day is just around the corner. And even before these credit-crunch times, we all know how it can often turn out to a very expensive day to show your love, especially if your other half has expensive tastes! But it is possible to be romantic whilst living on a credit crunch budget. Here are some ways to beat the credit crunch and still have a romantic day….

1: Be romantic and cook a meal… Cook your partner’s favourite meal at home instead of facing a bustling restaurant where the romantic atmosphere is bound to be spoiled by at least one arguing couple. Not only will cooking at home provide you with a more romantic and intimate atmosphere with the addition of some cleverly placed candles and soft music, but you can also avoid over-priced wine and the waiter’s tip!

2: Go for a walk, or a drive… If it is too cold to go for a romantic walk, then go for a drive to those ’special places’ from the past, such as the place you first met or shared your first kiss and talk about the good times together, and maybe even re-live them.

3: Write a love note or soppy poem… Use the blank space in your Valentine’s card imaginatively. Write a love note or romantic poem which they will be sure to treasure. And if you are stuck for romantic words, try writing out an old verse which truly expresses how you feel.

4: Put together a mix CD or MP3 playlist... Go back to your teenage years when you used to compile a mixed-tape for your latest crush. Put together all those songs which mean so much to you, or your favourite romantic songs. Your partner will be very impressed by the thought and you can use them in idea number 1.

5: Make heart-shaped treats… Use the credit crunch as an excuse to reignite your culinary skills. Bake heart shaped chocolates, cookies or cakes together from scratch.

6: Rent a DVD, get a takeaway and a bottle of wine… Nothing can de-stress you more than sitting down together and watching a DVD (to stick with the Valentine’s theme, make it a romantic one!). Turn the lights down low and cuddle up on the couch together with your favourite bottle of wine, much more romantic than a jam-packed cinema.

7: Candles, candles and more candles… Nothing says romance as much as candles do. Tea light candles are really cheap to buy. Purchase a bag and dot them all around the house to really set the Valentine’s mood.

8: Make your own Valentine’s Day card… It can be much cheaper, and much more personal to make your own Valentine’s day card. Find some romantic pictures of the two of you to use this as your basis. Putting some rose petals in the envelope is an additional romantic touch.

9: Create your own snow messages… If it is snowing this weekend, and chances are it could be, make a solution of water and red food colouring to surprise your loved one with written love notes in the snow. And take a picture in case the snow starts to melt.

10: Forget about your finances, just for the day… If you really are struggling with debt then sometimes it can be very hard to forget about your problems. Even if you are worried about your debt management plans, try to push it aside for just one day. As you can see from the tips above, you don’t have to spend a fortune to enjoy a romantic valentine’s day with your loved one.

Have we missed out any cheap credit crunch Valentine’s ideas? If so then please feel free to add your suggestions in the comment box below…

The worse of the credit crunch is over, or so we are told, but that doesn’t mean that you have to go back to your old spending habits. There are a number of excellent money saving ideas to stick to and ensure that you can keep your debt management in check.

Many of us found ourselves coping with the worst of the credit crunch by adopting new money-saving strategies that were designed to cut costs, avoid spending more than our income and ensured that our personal finances are in check. Now that the credit crunch is improving, it is important that we don’t abandon these credit crunch spending ideas and find ourselves returning to our old ways of spending.

There are a number of ways to save money, and the following tips are really simple to keep to meaning you can save money easily, which is what everyone wants to do!:

1. Voucher Codes. These were buoyant during the worse of the credit crunch when companies tried to make sure that we still kept spending with them. But the good news is there are still gems to be found and these vouchers could save you a significant amount. You can use these funds to pay off your debts a little bit quicker.
2. Comparison Shopping. Don’t feel the need to be loyal to your supermarket. Shopping at different retailers means that you may be able to save yourself some additional money by taking advantage of instore special offers! Don’t forget that you don’t have to buy branded goods or the best supermarket ranges, standard store brands can be just as good, and even better for your bank balance.
3. Comparison Websites. It is not just your grocery shopping where you can save money by switching stores; comparison websites have opened up a number of different opportunities which allow you to save yourself money on all sorts from travel insurance, home insurance, car insurance etc. Make sure you take advantage of these offers and don’t spend more than you have to.

Learn to embrace your new-found frugal ways and these credit crunch spending ideas to make sure you can take greater control of your finances without making any major sacrifices to your standard of living.

Recent research has suggested that the number of people considering an IVA (Individual Voluntary Arrangement) may increase due to the credit crunch, as more and more people are unable to manage their debt.

Lenders are getting increasingly restrictive about their lending criteria, which means that debtors are trying to find alternative methods to regain control over their finances. An IVA means that your debt can be repaid in an average period of 60 months and it is often a much better alternative than bankruptcy and with fewer implications.

The Royal Institution of Chartered Surveyors has recently showed that there will be around 120 repossessions every day this year. For those vulnerable people, there could be ways out of debt, and the key message is to act now, and don’t put off dealing with your finances.

One Advice are debt advice specialists and we arrange a number of debt solutions, such as IVA or debt management plans. We believe in offering our customers ethical advice, for free information please call 0800 048 1752.

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.