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Are you looking for Debt Advice, UK financial management regulation information or other financial guidance? Then you are not alone.

Tuesday, February 16th, 2010

With the average household now on the increase and individuals in the red to the sum of over £30,000 per person on average, personal debt in the UK now totals £1,500 billion. Every day a massive £200 million needs to be found just to service interest payments. It’s not just British business and individuals who have racked up debt. The UK Government too has borrowed extensively and is in debt to the tune of £800 billion – an unimaginable amount that increases at an eye-watering rate of £4,385 a second.

No wonder that debt advisors and professionals skilled at setting up debt management programs are in such high demand.. UK consumer rights organisation the Citizen Advice Bureau says its debt advisors are dealing with over 9,000 new debt management advice enquiries every day.

In many ways these people are the fortunate ones. Those that have realised that they may need help, are already seeking debt management programs and are on the path to dealing with and managing their financial problems.

For people who either fail to appreciate the realities of their financial situation or simply choose to ignore what’s going on, a real and present danger exists that debt will start to spiral out of control. Without careful handling a vicious circle of debt is created and you can find yourself forever playing catch up – robbing Peter to pay Paul.

In the long run the chances are that they will be forced to seek debt help anyway. Grasping the debt nettle before things get too out of hand can save you a great deal of time, anxiety AND cash. It will also open up more flexible, less restrictive debt management options such as IVAs or Debt Relief Orders – preferable to bankruptcy for many people.

Are you looking for debt advice? UK consumers have a wide range of organisations to turn to. Make sure that if you feel you need some guidance that you seek out expert, independent advice and start getting to grips with your debt as soon as possible.

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Insolvency Figures at Record High Levels

Thursday, February 11th, 2010

The UK’s 4th Quarter insolvency figures were released last week and on the whole make for grim reading. The recession has clearly had and is continuing to have a deep and sustained impact, especially upon individuals, with no obvious end to the trauma in sight.

According to the Insolvency Service a total of 35,574 people in England and Wales were declared insolvent in the final three months of the year. This represents a rise of nearly 25% on the same period in 2008 – a record Q4 high contributing to an overall annual figure of 134,142, well above the previous 2006 high of 107,288.

A breakdown of the figures reveals that, of those seeking a formal arrangement with their creditors, by far the largest increase came in the number of IVAs (Individual voluntary arrangements), which leapt over 20% to 47,641 for the year. Considered by many as a preferable arrangement to bankruptcy, IVAs allow debtors and creditors to agree on a repayment plan over a set length of time (usually 60 months). They come with fewer restrictions and outstanding amounts are usually written off at the end of the repayment period.

When it came to full-blown bankruptcy, Q4 figures show a 7% fall on Q3. A total of 74,670 individuals were declared bankrupt over the year, a rise of nearly 11% on 2008’s figure.

Recently introduced DROs (Debt Relief Orders) took account of 11,812 insolvencies. DROs came into play from April 2009 and are eligible to borrowers with debts of less than £15,000 and only minimal assets. It’s expected that as more people become aware of DROs so their popularity will increase.

There was slightly better news for business during the 4th Quarter. Although throughout the year figures show that there was a 23% rise in business insolvencies on 2008, the 4th Quarter numbers of 4,566 actually represents a fall of 2% on Q3 and a 1% fall on the previous year.

With experts predicting that insolvencies are likely to rise even further in 2010 it seems that, especially for individuals, things may get measurably worse before they get any better.

Whatever happens though, the advice remains the same. If you find, for whatever reason, that you are living beyond your means and starting to accumulate debt don’t wait until it’s too late before seeking help. There’s plenty of professional debt advice out there – seek it and save yourself a whole load of trouble over the long run.

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When it comes to debt management UK consumers have a range of options that can help

Wednesday, February 10th, 2010

Have you found yourself in the position where every week or every month the cash coming in simply refuses to add up to the cash going out? Feel like you could do with some debt advice? You’re not alone. As the recession drags on, many debt advice organisations are becoming inundated with requests for information, specifically on debt management. The Citizens Advice Bureau alone now deals with somewhere approaching 10,000 queries a day.

With the average amount owed by every UK adult (including mortgages) standing at £30,226 – that’s 133% of average earnings – it’s little wonder that it feels like you have to run just to stand still.

Often through no fault of their own people are finding that what at first seemed an almost insignificant debt on a credit card or bank overdraft has started to take on a life of its own and slowly spiral out of control. As people have been laid off, overtime cut and wage rises put on hold, so to has the pressure of maintaining a positive bank balance along with keeping on top of monthly repayments.. Some people have inevitably slipped into the red.

Once on the wrong side of the line the big question of course is how to break the circle? What are your options when it comes to debt management?

UK consumers have a number of choices.

• You can look at consolidating your debt by pulling it all together into one loan.
• IVAs (Individual Voluntary Arrangements) – a legal agreement between you and your creditors about how you’ll pay off your debts.
• If you have at least one County Court Judgement against you and debts of less than £5000 you can apply for an Administration Order.
• If you are on a low income and have debts of less than £15000 you could apply for a Debt Relief Order.
• You could declare yourself bankrupt. Bankruptcy can be an involved process and for some might not be the best form of debt management.

Whatever your situation, get someone who is experienced and expert in dealing with debt to advise you on how best to handle your individual debt management. There’s certainly plenty of good quality information available.

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Considering the benefits of an IVA? UK debt management for UK business AND individuals

Friday, February 5th, 2010

If anyone finds themselves in debt then without doubt the single best piece of advice anyone can receive is that they should face up to the reality of the situation. It’s vital to take stock of exactly where you stand, to start making arrangements and to tackle the problem before things deteriorate further.

Sure, it’s never nice to have to face up to your financial demons and it’s common for people to feel a little embarrassed or reticent about starting on the path to financial recovery. Don’t let misfortune or mistakes in the past ruin your future. Take professional advice and get to grips with things as soon as possible.

What about an IVA?

UK financial authorities introduced IVAs in 1996 as a formal and legally binding agreement made between a debtor and creditors under which the debts are frozen. More flexible and less onerous than bankruptcy, if you have debts of more than £15,000, a regular income and can budget to make monthly repayments (usually over 5 years) then IVA companies in England or Wales may have just what you need.

In Scotland an equivalent to the IVA is known as a Protected Trust Deed.

They certainly seem to be proving a popular option. Though IVA advice was originally only offered to small businesses that got into financial difficulties and wanted to avoid bankruptcy, they have proved increasingly popular with individuals. In 2009 around 50,000 people entered into an IVA. UK government figures revealing a leap of 25% on 2008 as the recession deepened. Over the same time nearly 80,000 individuals were declared bankrupt while company failures totalled around 50,000.

If you are looking for help and IVA advice on how best to deal with debt or considering your next move on where to turn for impartial advice and guidance then there is a wealth of professional, independent IVA companies out there. You may be surprised at the range of options available and surprised too at how good you will feel knowing that you are taking positive steps to address the situation.

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Are you in debt? An IVA (Individual Voluntary Arrangement) might be just what you need to solve your financial problems

Thursday, February 4th, 2010

Financial problems come in many forms, shapes and sizes and often arise through no fault of your own. Maybe you’ve been let down by someone who owes you money. Maybe you have fallen victim to the economic downturn and lost your job or had essential overtime cut. Health reasons, domestic situations, family circumstances can all come in to play and cause all manner of difficulties.

If you have financial problems then take consolation from the fact that you are far from alone. Figures reveal that as many as 1000 people a day are seeking some form of IVA help or formal debt rescheduling plan.

One of the most flexible options for dealing with debt, an IVA (or the Scottish equivalent the Protected Trust Deed) is often a preferable alternative to bankruptcy for those in serious debt. For example, an IVA or Protected Trust Deed is more flexible, helps you avoid the restrictions of bankruptcy and protects your assets unlike bankruptcy.

In setting up an IVA you need to organise a legally binding timetable with your creditors in which to clear your debts, usually over a period of 5 years. At the end of the period, as long as the agreed percentage (usually somewhere around 50% of their original debt) has been made, any outstanding debt may be written off.

In order to qualify, you will need to meet the following requirements:

• You must have at least £15,000 of unsecured debt
• You must be able to pay at least £200 a month into the IVA
• You need to owe money to three or more. creditors.
• You need to have a regular income

Though an IVA can be an effective way of avoiding bankruptcy if you fail to maintain payments or default on the arrangement you may end up being declared bankrupt.

IVAs have been around for a while now so these days IVA help is plentiful and professional. If you think an IVA could help then seek advice. Make sure though that you take the necessary professional and independent advice before committing.

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Protected Trust Deeds and how they can help you manage your debt

Wednesday, January 27th, 2010

Have you heard of protected trust deeds or a Scottish trust deed? Well if you’re based in Scotland and have run up debts that are proving tough to manage you may well be interested in taking some trust deed advice or at least finding out a little more about how protected trust deeds can help you.

Times have been tough over the last couple of years for many people. The length and the depth of the recession are cutting deep. According to the BBC an estimated 125,000 people were made bankrupt in 2009. Accountancy giant KPMG actually believe that the figure may top 150,000. The Council of Mortgage Lenders (CML) only compounded the doom and gloom by estimating house repossessions will top 60,000.

With only faint signs (a surprising fall in unemployment this month for example) offering any hopes that the UK’s fragile economy will turn the corner in the near future, many experts are predicting another tough year ahead. There is little doubt that over the next 12 months many people will face increased financial burdens and will end up in severe financial difficulty. Failure to adequately manage debt means that unfortunately some people will end up going bankrupt.

Thought probably the best-known way through which people escape severe debt, bankruptcy is a serious step to take and deserves very careful consideration. Yes it ends after one year, but you may well end up forfeiting all your assets including your house to pay something off your creditors.

There are alternative ways of managing debt that anyone struggling with money problems should be made aware of especially if you live in Scotland.

Available only in Scotland Scottish trust deeds or protected trust deeds (PTD) can prove a straightforward and cost effective way of managing your debt problem. Similar to IVAs (Individual Voluntary Agreements) protected trust deeds enable you to repay your debt over an agreed length of time at a rate you are able to afford. Once the agreed repayment period has expired any remaining money you owe is written off.

Interested? Talk to a reputable debt guidance agency for the latest trust deed advice.

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Individual Voluntary Arrangements (IVAs) – Debt repayment made simple

Monday, January 25th, 2010

Debt in the UK is at record levels and many debt advice organisations and agencies are dealing with unprecedented numbers of requests for bankruptcy and Individual Voluntary Arrangement (IVA) advice – even the Government owe nearly 800 billion – (it may surprise you to know that as a proportion of overall economic output debt at 68.7% of GDP compares favourably with the US – 84.8% -, Italy – 115.8% and Japan – 218.6%). International global debt comparisons aside, the point still remains; more people owe more money than ever before.

Often through no fault of their own many now find themselves in positions where their debt has rapidly gone from manageable to out of control – debt that needs addressing quickly. Increased unemployment, shorter hours, less overtime, pay freezes and pay cuts has all affected incomes. Expenditure on the other hand seems to have rocketed. Fuel prices, council tax, food costs, utility bills, you name it, everything seems to have gone up drastically over the last couple of years.

If you find yourself in the position of owing more than you can cope with, what can you do? What are the options when it comes to managing your debt?

Consider the benefits of an IVA Advice regarding IVAs is consistent – Individual Voluntary Arrangements can offer a relatively simple and effective alternative to bankruptcy. Particularly appropriate for unsecured debts such as personal loans, bank overdrafts, store cards and credit cards once in place an IVA also offers ongoing protection from additional creditor claims. You agree to pay an affordable amount to your creditors over a set time period (usually 60 months) and the end of the payment period any outstanding debt is written off – up to 75%.

If you live in Scotland then you have the option to pursue a system that’s similar to the Individual Voluntary Arrangement – the Protected Trust Deed (PTD). Instead of the five-year period usually applied to IVAs The Protected Trust Deed lasts only for 3 years. Again, in many cases Protected Trust Deeds might be regarded as a less onerous alternative to bankruptcy which in Scotland which is referred to as Sequestration.

For any additional information on IVA or indeed anything to do with debt management make sure you contact a reputable debt advice agency.

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Why an IVA debt solution could help you with serious debt

Tuesday, November 24th, 2009

When serious debts are mounting up, many people fear the spectre of bankruptcy and the devastating impact that can have on your finances, your credit rating and your life as a whole. But seeking debt advice from an independent debt management service and applying for an individual voluntary arrangement (IVA) could be a better way to achieve unsecured debt consolidation on credit cards and personal loans, making repayments more manageable.

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.

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Debt questions – what are the drawbacks of bankruptcy?

Wednesday, November 18th, 2009

In just one day, 362 people in the UK will be declared insolvent or bankrupt. KPMG estimate this will increase to 411 people a day throughout 2009 or 1 person becoming bankrupt or entering into an Individual Voluntary Arrangement (IVA) every 3.5 minutes and many others seeking help from debt management services.

Frightening statistics. And if you don’t believe the recession is as bad as the headlines have been making out, consider that if the number does increase to 411 per day declaring insolvency or bankrupt, that will mean an incredible 150,000 people could be declared bankrupt by the end of the year. That’s the size of a medium sized town. Bankruptcy seems to be presented as an easy option to take if you get into difficulty financially. The attraction of not having to pay creditors and effectively write off debt may be tempting many to sign on the dotted line and bankruptcy doesn’t seem to have the social stigma that it once attracted.

But there are significant drawbacks of declaring yourself bankrupt. Your credit rating will be seriously damaged. Of course, if your financial circumstances are severe enough, you may not really care that much about your credit rating and simply need immediate help managing debt, but it can have lasting consequences even years afterwards. Your financial history may also impact your chances of applying for certain jobs, particularly in the banking and finance sector. Let’s be honest – would you take financial advice from someone who’s been declared bankrupt?

Finally, it can seriously damage the finances of those you owe money to. So not only is your financial situation affecting you – like ripples on a pond it spreads out into the wider community. Obviously, the best option is not to get into such a financial pickle that you have to consider bankruptcy in the first place. But if you are in trouble, and before you reach for the insolvency paperwork, talk to a professional debt advisor who may be able to show you an alternative that keeps you in business, trading and financially viable.

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Seeking debt help as recession bites – how the economic climate is causing a rise in debt problems

Friday, November 6th, 2009

The recent recession (which the headline writers now say we are slowly starting to climb out of) hit hard and fast. Whilst everyone was quick to blame the banks’ exuberance and penchant for huge bonuses and high risk deals, the truth is that the age of easy credit for all was the real cause of the financial meltdown. Unlike other recessions, this one has hit everyone, from the average man in the street to the high-flying city bankers and the numbers of people seeking debt help has significantly increased. 

Because credit cards, ‘interest free’ credit and other financial carrots were dangled in front of an eager and willing public for so long, many people have found themselves seriously overstretched financially when the doors slammed shut on the easy credit culture of the 90s and as a result more and more people are looking for debt management solutions or even ways to write off debt. A far more cautious financial market is now less willing to repeat the same mistakes of that boom time and is coming down hard on those in financial difficulty. Despite billions being pumped by the Government into the banking industry, there has been very little trickle-down effect to the ordinary consumer, leaving them in as much financial trouble now as at the start of the crisis, and consequently many are seeking debt solutions from IVA companies and debt management services. 

The headlines may claim that the green shoots of recovery mean an end to the current financial crisis. But the aftershocks of one of the worst meltdowns in banking history are still affecting ordinary people with mounting debt problems. The average household debt in the UK (including mortgage repayments) is over £58,000. The average owed by every UK adult is £30,188 (including mortgages). This is 130% of average earnings. So it’s obvious that personal debt is still out of step with income, meaning that the after effects of the recession are set to continue for some time to come.

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