It’s not hard these days to find many different ways in which it’s possible to run up debt. In fact most people suffering debt problems have ‘robbed Peter to pay Paul’ at some stage. They’ve spread their borrowing across a variety of sources. As repayments becomes difficult through one form of borrowing, say a credit card for example, then it’s often possible to turn to another card or alternative form of borrowing to manage the existing debt. Unless you are extremely careful it won’t be long until you are caught in a web of increasingly unmanageable debt on a number of fronts – store cards, mortgages, unpaid bills and additional credit cards debts all maxed out to try and pay off the others. Before you know it you are owing money left right and centre, with different amounts to different lenders piling up.

It’s also likely that the interest rates on some of your borrowing, credit cards or overdrafts will far exceed rates on other types of borrowing. Of course, it makes sense to be paying the lowest rate possible. This is where debt consolidation and debt consolidation loans come in useful as a debt solution that can help simplify and lower the cost of your repayments.

The basic concept behind debt consolidation is that it pulls all your respective loans together into a single manageable debt solution. A single loan such as a credit card consolidation loan can prove to be a powerful weapon in fighting off the need to enter into bankruptcy.

Planning for debt consolidation means clear, careful and accurate budgeting, as you will need to be able to commit to an agreed repayment amount over an agreed period of time. Realistic planning is important. If you miscalculate and find yourself unable to maintain your new consolidated repayments, you run the risk of falling into even deeper debt trouble.

Take professional and impartial advice to look at how you can consolidate your debts and manage your repayments effectively.

While the money’s coming in regularly and you can meet the costs of living then of course everything’s fine and dandy – debt advice or IVA advice are the last things on your mind. Even if you do splurge out and slip into the red as long as next month or the month after, you can restore the balance and get things back on an even keel then there’s absolutely nothing to worry about. The real problems, the long-term issues that can cause serious distress and worry, come about when things aren’t running so smoothly. You might suffer a drastic fall in income through redundancy, the loss of overtime or a change in your domestic arrangements – a divorce or separation perhaps. Maybe there’s been an unforeseen and unavoidable leap in expenses – an interest rate rise, an unexpected bill or a family crisis. It can happen to anyone and it can happen at any time. Life is unpredictable and no one is immune from the possibilities of falling on hard times.

Fortunately debt advice UK wide is now readily accessible and when it comes to free debt advice, UK consumers are in a privileged position. A debt advisor can quickly be called upon to help try and resolve debt management issues. Independent, impartial and free debt advice might take the form of IVA advice, loan consolidation or bankruptcy – whatever debt advice is needed to properly address the situation. If you have debt problems that you feel would benefit from proper advice then don’t delay. The faster you tackle your money problems, the faster they can be resolved.

If you find yourself in debt but not severely, then debt consolidation might be just the thing to help get you back on track – a single loan that will cover everything. If it is simply a case of cutting your interest rates so that your payments become manageable, then debt consolidation loans can offer a quick and clean debt management solution. Maybe your income has reduced and you are unable to meet existing repayments. Again, debt consolidation loans can make them manageable.

The best debt advice when considering even unsecured debt consolidation is to budget as carefully and as accurately as possible. If you budget incorrectly or your circumstances change for the worse and you fail to maintain your consolidated repayments, you might quickly find yourself in trouble and facing insolvency. In the case of consolidated debt secured against your home you may even lose your house if you fail to keep up with the repayments.

Take a close look at your existing commitments and understand clearly how much you are being charged to borrow. There are plenty of professional organisations that will be able to offer impartial debt advice and help you compare the current costs of your loans against the cost of debt consolidation. Debt advice is only a phone call away.

First things first though – the question of whether to pay for debt advice. If anyone does try to charge you for debt advice just politely turn your back and walk away. They’re wasting your time. Don’t let them try to waste your money too, especially if you haven’t got any to waste. No credible debt management agency worth its salt will charge you for advice.

Then again just because the best advice is free advice don’t be fooled into thinking that all free debt advice it really is impartial. After all doesn’t everyone offer free debt advice? The question to ask yourself is – is this free debt advice I’m getting, IVA advice for example, just a way of guiding me towards an inappropriate debt management product? Is it really debt advice that I can rely on and trust? Who am I speaking with? An experienced, well trained representative of an independent agency who can advise on my best course of action, or a salesperson who’s trying to guide me towards the most lucrative commission?

Confused? You needn’t be. There’s plenty of impartial debt advice UK wide that can prove a great starting point in helping you manage your way out of financial trouble. From IVA advice, advice on bankruptcy, debt consolidation and Debt Relief Orders, there really is a wealth of knowledge and know-how out there.

At DAT we already deal with more than 100 people a day, offering them independent guidance and advice to help them get to grips with debt problems. Maybe we can help you too.

If you have run into financial problems and are finding that despite your best efforts the debts are starting to mount and it’s becoming ever more difficult to make ends meet, then perhaps an IVA is the way forward for you. The best way to know for sure is to take properly qualified and truly independent debt management advice.

There are certainly plenty of organisations out there offering help. A quick search just on Google will return a bewildering number of options. If you are seeking IVA advice or advice on the Scottish equivalent Protected Trust Deeds, then do take care that you are getting the best impartial guidance possible.

The sorts of things you should be looking at include whether you might be entitled to an IVA in the first place. As IVAs tend to be most appropriate to people in serious debt owing in excess of £15,000 and struggling to meet repayments, then it may be an unnecessary step for you to take. There are a variety of possible debt management solutions; debt consolidation for example might be a better option. It all depends on your particular circumstances, the amounts you owe, who you owe them to and your ability to come to a mutually acceptable payment arrangement and stick to it. You can only really get to the bottom of things by talking with impartial debt management experts.

If you do decide that an Individual Voluntary Arrangement is the best way forward then the obvious next questions are – who is the most suitable IVA provider? And how do you go about setting it up?

Again, what you really need is trained, experienced independent advice to guide you in the direction of the most appropriate debt solution from the most a reputable and reliable provider.

Don’t rush into things, take your time and make sure you get the advice you need.

The recession has had a devastating effect on both business and personal finances across the country. Workforces have shrunk (at the height of the downturn as many as 3,000 people a day were being laid off) and up to 50,000 companies and 150,000 people became insolvent during 2009. One organisation that has experienced record amounts of work during these toughest of times has been the Citizens Advice Bureau.

UK householders and businesses in their thousands have turned to the Citizen Advice Bureau for help and guidance on how best to manage their debt. Debt advice, it would seem, has been one of the very few growth industries in these torrid times.

Reflecting on official Government debt advice; the sort of common sense help offered by the Citizen Advice Bureau includes their 10-point recession-beating Citizens Advice guide:

• Don’t bury your head in the sand. If you have a financial problem face up to it and start dealing with it as soon as possible.
• Take informed, independent advice.
• Pay priority debts first.
• Budget and plan.
• Look hard for savings on all your bills.
• Check to see whether you are entitled for benefits.
• Whilst debt consolidation can be a good idea, don’t jump out of the frying pan and into the fire with exorbitant loan interest rates.
• If you have mortgage issues take advice and deal with them quickly.
• If you lose your job be sure to check your legal rights.
• A property in the UK is repossessed every 11.2 minutes. Don’t become just another homeless statistic. If you lose your home or your home is under threat you may be entitled to help.

Over the years, Citizens Advice has established a formidable reputation as the ‘people’s champion’. What the CAB doesn’t know about debt management isn’t worth knowing. When it comes to the Citizens Advice Bureau, UK consumers can count themselves very fortunate. Armed with their expert, impartial advice you can begin the important job of getting your debt under control and you finances back into shape.

Debt management is exactly what it says it is – managing your debts and getting them back under control. The first step is to realise that you can’t let the situation carry on in its present state any longer and to sit down, with a debt management expert if necessary or speak to the national debt helpline, and take a good, hard look at your finances. Make a list of your major creditors and then get in touch with them. By contacting them and informing them of the situation, not only will they be more willing to negotiate more manageable repayment terms, but you will also prevent them from sending you those dreaded final demands every day.

Work out your outgoings as compared to your income, but remember that you have to leave yourself something to live on otherwise the spiral of debt will get worse. Prioritise your creditors (don’t forget the little guys, but at this stage your major creditors take priority) and allocate a certain amount of your income towards paying them off first. You may not be able to write off debt but once things are on a more stable footing and you’ve taken control back, it’s easier to work out payment plans that will help you to clear the debt more quickly.

If all of this seems daunting and you’re still in a panic about managing your finances, talk to an independent debt counselling service. They’re specialists in debt management and may know some ‘tricks of the trade’ to help you control your money in a more manageable way. Never be afraid to ask for help.

An Individual Voluntary Arrangement is a contract between you and your creditors. You pay an agreed monthly sum, usually for 5 years. This is divided up between people you owe money to, who accept the sum in settlement of the amount you owe them. Once the term of that IVA is over, you have the chance to start afresh without the impact declaring yourself bankrupt can have over the long term. Unlike bankruptcy, an IVA does not prevent you from running a business so if you want to start up your own business during the term of the IVA, you can. It could be a way of getting yourself out of debt and back on your financial feet much more quickly.

The first step is to get some IVA debt help – speak to the national debt helpline or to any one of the specialist IVA companies in the UK. In essence, IVAs restructure your payments to creditors so that they become more realistic and effective, putting you back in control of your finances. By opening the lines of communication and sticking to an agreed repayment plan, you reduce the amount of pressure that is often placed on those in debt by their creditors, making life much more manageable.

Bankruptcy is a last resort debt solution and, even though it has become more common particularly during the recession, it still carries a certain amount of social stigma and does invariably affect your credit rating for years afterwards. An IVA helps you avoid this unenviable situation and prevent it from becoming a millstone around your neck for years. Talk to an impartial debt advisor if you think an IVA may help you control your debts.

Credit card debt

One of the primary causes of the economic recession was the ease with which ordinary people could run up thousands of pounds of debt on ‘easy credit’. Total credit card debt in July 2009 was £53.9bn, and with the interest charges on credit cards being higher than the base rate by a considerable amount, credit card debt is a growing problem. Many people solve runaway credit card debt by looking for debt consolidation help.

Unemployment

One in 33 people in the UK is facing unemployment in 2009. The financial buffer of a regular income can be ripped away very quickly and because savings are at an all-time low in the UK, very few people have the money put by to cover themselves in case of unemployment. Losing your job can mean rapidly mounting debt in a very short space of time. If you lose your job and can’t make your payments you need to act quickly; start with government debt advice – they can recommend an appropriate debt management solution.

Illness and divorce

Illness can put you out of work for the long term, and even if you keep your job you will only be eligible for statutory sick pay – a far lower amount than your usual income. Divorce and separation can also be a financially trying time leading to debt, as people have to reassess their lifestyle and their outgoings. A good debt management service will understand the implications that personal problems can have on debt.

Poor financial management

The ‘dripping tap’ effect, poor financial management and a temptation to adopt an ‘ostrich’ syndrome to mounting debts won’t make the problem go away. Perhaps one of the easiest areas to tackle, poor financial management can be quickly turned around with the right debt advice and help.

Failure to maintain credit agreements

If you are committed to credit agreements and you fail to maintain your end of the bargain, the interest charges can start to mount up. Creditors will start chasing for payment (and charging you for the privilege), but again, this is an aspect of financial management that can be tackled relatively easily to get you back on track.

1. Admit there’s a problem
Ignoring mounting debts and hoping that they’ll either ‘magically’ go away if you don’t admit to them or spending most of your time desperately worried about coping is not the right way to manage a debt problem. To take control, you first need to admit that there is a problem.

2. Get professional debt advice
Trying to solve the problem on your own will be difficult if not almost impossible. If you are in debt, there are things you can do to drastically reduce the problem that a debt counselling expert will be able to tell you about. They spend their entire careers helping people get out of debt every day, and having that expert advice can make all the difference in a financial crisis. So as soon as you realise that there is a problem, get in touch with an impartial debt advice service who will be able to sit down with you and help you plan a strategy to take back control of the situation and get you out of debt.

3. Have a plan
A debt advisor will be able to help you put together a debt management plan that, if you stick to, can mean that you’re debt-free far more quickly. But for that plan to work, you have to stick to it. By informing your creditors of your situation and drawing up voluntary agreements with them to repay the outstanding amount over a longer period of time but with smaller, more manageable payments, for example, you can avoid the bankruptcy route and problems with credit later on.