Welcome to Debt Advice Trust Blog

“Are you in debt? Do not fret for help is in your hands.
Debt solutions and debt help are available across the land.
I write this blog in muted song to brighten a rainy day,
whilst hoping in the mean time, to tell you of IVAs.”

“An IVA is good for you, it can consolidate your debt,
into a more manageable payment that may even let,
you enjoy the finer things in life a lack of funds has held you from,
so start today and rid your bills that have the other Harry, Dick and Tom.”

“Don't get distressed by final notices and bills upon your mat,
Just call the people at Debt Advice who will get you back on track.
What debt solution is right for you is really a matter of opinion,
but the advisors at the DAT are not just company minions.”

“The help you need to be free from debt is really not that far,
away from where you think and where you actually are,
financially you may be screwed but this is not the end of the line
with an IVA and the DAT you could be financially stable in no time.”

“15 thousand pounds in the red is needed to get an IVA,
but you must still hold a steady job to prove that you can pay,
for the debt solution monthly rates that you will have to render
to satisfy your formal agreement not too mention your lender.”

“An IVA may seem quite serious but it does have its good bits,
as a debt solution for many people it really does fit.
It can help avoid bankruptcy that will effect you at a later date,
you don't have to tell a soul about your IVA, it really is private.”

Once you have acknowledged that you have debt, and want to do something about it, what kind of debt advice should you be looking for? Well, there are constantly adverts on TV for debt solutions such as debt consolidation or an IVA for example, but are you being lead in the right direction?

By checking out these few simple tips, whether your preventing further debt or attempting to tackle that more sizeable debt and avoid it spawning into something nasty, you should be back on your financial track in no time.

1.For those who are just in debt: £500 - £2000

Budgeting, budgeting, budgeting &#45 It can't be said enough. If you are trying to reduce a smaller debt then this is by far the most sensible and effective way of doing so. Forget about getting loans to cover debts to cover loans, it all gets very complicated. Simply live within your means, don't spend what you don't have and definitely cut up those credit cards.

2. For those who are that little bit more in debt: £2000-£15000

There are a lot of different debt solutions available. How do you know if an Individual Voluntary Arrangement (IVA) is going to be suitable? Here’s four signs that might help you to decide.

1. Your debt is over £15,000
IVAs are for serious debt. While some people enter into an IVA with less debt, it is usually only recommended for £15,000 debts or over.

2. Your debt is owed to three or more creditors
By different creditors they need to be completely unrelated, for example, they can’t be debts on three different accounts with the same bank. Don’t forget that things like mortgages, hire purchase debts and fines like parking infringements can’t be included in an IVA .

3. You are in regular employment
You’ll need to have steady, regular employment to get your IVA to be approved so the creditors know they have a guaranteed payment each month.

4. You can afford a minimum payment amount every month
For your IVA to be approved your creditors will have to agree on a minimum monthly payment. That minimum amount will depend on your individual circumstances debt experts can advise you confidentially. If your disposable income will allow you to make these payments then an IVA could be a good option for you.

There is no one-size-fits-all solution with debt. The only way to know if an IVA is going to be the best solution for you is to get professional advice. At Debt Advice Trust we can give you impartial, unbiased advice on our free helpline. Or get involved in our new online forum where our debt advisors can answer your IVA questions.

It is estimated that by the grand old age of 18, over half of the UK’s youngsters are in some sort of debt, be it store cards, overdrafts or store cards... Ok! I really dislike store cards, but I understand the pressures young people face to keep up to date with their peers debts. You understand too, as you’re statistically in it... up to the eyeballs!

Young women in particular are regularly chronicled in the papers as spending far beyond their means. There are even cases of young women being declared bankrupt before they even graduate. Cries of “we never did that in our day” fall on deaf ears, not out of disrespect, mainly because she who should be paying attention is already 50 ft ahead of you listening to her newly purchased mp3 player (on a store card), on her way to buy the latest, shiniest, cropped, frilled, marzipan, magic, celebrity designed (’as if’) wares (on a store card). It’s not really her fault though, for the money keeps on coming...

£1,318 billion was the latest figure (March 2007) produced by financial officials, indicating how obscene our borrowing behaviour has become. An increase of 10.5% since last year alone, that’s £116 billion in one year. Can you really even comprehend that? I certainly can’t and what is worse, I can pretty much guarantee that your average 20 something (male OR female) is not concerned with this figure, in fact they simply don’t care!

If you’re trying to get out of debt, it can be difficult to know where to start. Here’s six steps that should help you on your way to getting back in control of your debt.

1. Stop ignoring your Debt!
Your debt isn’t going anywhere unless you start to deal with it. Write down everything that you owe and don’t panic when you get to the final sum.

2. Stop spending on Credit!
Now that you know what you owe, its time to either cut back on using or cut up your credit and store cards. Don’t take out any more credit or store cards or continue borrowing.

3. Prioritise!
Your debts can be divided into two categories, priority and non-priority. Priority debts are things like mortgage payments, taxes, rent, utilities and telephone. Usually the penalties of not paying priority debts can be severe, like prison, losing your home or having utilities turned off.

Non-priority debts include things like credit cards, store cards, small loans, student loans, overdrafts and money you owe to family and friends. Because the penalties for not paying a priority debt are severe, it’s important to get these sorted first.

4. Work out your Income and Expenses
Add up all the after tax income you would receive in one month, including things like benefits and child support. Also include contributions from others (for example your partner, family or lodger).

Write a detailed list of all of your expenses for an average month and add them together. It might help to start writing down every thing you purchase for a couple of days first to make sure you don’t miss things out.

5. Make a Budget