Some industry officials have expressed concern that the level of insolvencies in the UK could be increased and sped up as a result of a new scheme that has come into play recently. (more…)
Posts Tagged ‘debts’
DROs could speed up insolvencies
Sunday, May 3rd, 2009
Some debts could be written off by debt management firms and charities
Wednesday, June 4th, 2008New government regulations that have been introduced could result in debt agencies and charities in the UK being able to write off a portion of clients’ debts even in the event that creditors are not happy about the matter. Many people that are struggling with their debts now turn to debt management agencies and charities, and are often put onto a debt management plan, where they pay a set amount each month to the agency, and this is then distributed amongst the creditors on a pro rata basis. (more…)
Acknowledge and deal with your debts
Monday, May 26th, 2008It can be very tempting for those with a high level of debt and financial commitment to simply try and ignore their financial worries once difficulties set in. Many people think that burying in their heads in the sand and trying to ignore financial worries means that they will not get stressed over the situation, but in fact failing to address this sort of problem can actually make the whole situation much worse, and could ultimately result in health problems, family problems, credit problems, and even legal action – or worse still loss of your home if you have secured finance. (more…)
Debt advice companies and charities get new powers
Monday, May 19th, 2008Rising personal debt levels in the UK have resulted in many consumers seeking advice and debt management assistance from one of the number of debt advice companies and charities around, and many have entered into debt management plans through these firms. However, in the past they have experienced difficulties in terms of making arrangements with creditors, who are often unhappy about freezing interest, accepting lower repayments, or writing off a portion of the borrower’s debt. (more…)
Refinancing mortgage could prove costly to IVA consumers
Monday, March 31st, 2008Many struggling borrowers in the UK have entered into an IVA over recent years, with awareness about this process having been raised through a series of advertisements put out by IVA firms. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement that is known as a softer alternative to bankruptcy. This process is designed to help those with a high level of unsecured debt to benefit from more affordable monthly repayments and to get out of debt more quickly. (more…)
Are you a homeowner on an IVA programme?
Wednesday, March 19th, 2008Awareness over Individual Voluntary Arrangements, or IVAs, has increased over the last couple of years, with a number of firms putting out advertisements relating to this type of debt solution. An IVA is known as a softer alternative to bankruptcy and is designed to help those in high levels of unsecured debt to get out of debt more quickly. (more…)
IVA homeowners could face problems
Tuesday, March 18th, 2008Over recent years Individual Voluntary Arrangements, or IVAs, have become increasingly popular with borrowers that have found themselves in unmanageable levels of debt. With an IVA, if agreed, the borrower pays a set amount each month, which is then distributed amongst all creditors on a pro rate basis, and the term of the agreement is usually five years. At the end if the five year period any remaining debt is written off leaving the borrower debt free. (more…)
Does it make sense to consolidate?
Tuesday, March 11th, 2008Consolidation of debts is a term that many of us have become increasingly familiar with over recent years, with many of us turning to consolidation in order to try and eliminate higher interest debts. If you are able to get your hands on a low rate consolidation loan with cheap repayments you could really feel the benefits of consolidation, but this is not necessarily a solution that is right for everyone in debt. (more…)
Options That Can Help Clear Your Debts
Sunday, March 9th, 2008These days, with the level of consumer debt in the UK at record highs, many people find themselves suffering from debt problems, and once these problems start they can quickly spiral out of control. Often, it is people with a number of high interest debts such as credit cards, store cards, and high interest loans, that find themselves experiencing problems when it comes to repayments, and with interest rates still high coupled with food, energy, and petrol costs on the rise, the financial outlook for those in debt can be very bleak. (more…)
Will IVAs become more transparent?
Saturday, March 8th, 2008In the past many consumers had no idea what an IVA was, but awareness has been raised over the past couple of years following a series of glossy advertisements run by a number of debt management agencies. An IVA, or Individual Voluntary Arrangement, is a legally binding agreement between a borrower and his or her creditors with regards to the repayment of debts. The aim of an IVA is to get the borrower out of debt more quickly, increase short term affordability for the borrower, and enable creditors to recoup some of what is owed to them. (more…)
IVA homeowners face soaring interest rates
Saturday, March 1st, 2008Homeowners that have entered into an IVA, or Individual Voluntary Arrangement, could face soaring interest charges on their mortgage as the result of a clause in the agreement that requires them to use the equity in their home to put towards their debts. An IVA is known as a softer alternative to bankruptcy, and those entering into this sort of agreement pay a set amount per month for a period of five years after which the remainder of the debt is written off. (more…)
The benefits of an IVA
Monday, February 25th, 2008Individual Voluntary Arrangements, also known simply as IVAs, have become more widely known over the past couple of years, with awareness about this course of action raised through a range of advertising from IVA specialists. This is a debt management tool that has become known as a softer alternative to bankruptcy. In order to be eligible to go down the IVA route you need to meet specific requirements and this includes having unsecured debts of at least £15,000, you or your partner being in full time employment, and owing money to a number of creditors. (more…)
Wipe Out Debt Problems With A Low Rate Loan
Monday, February 25th, 2008When you have a number of high interest debts on which you are making repayments each month dealing with your accounts can become tiresome and frustrating. Having to deal with so many payments and creditors can even lead to missed or late repayments, which can add to your debt problems, affecting both your credit rating and your finances, as you may be hit with hefty fees and charges. You could even find yourself facing court action if you start to default on repayments, so your debts could quickly get out of hand.
It is possible in some cases to wipe out all of these higher interest debts and replace them with one lower rate loan, which offers a range of benefits. If you want to ease financial management and reduce the amount that you are paying out each month you could really benefit from debt consolidation. This is where you take out a larger loan to pay off all of your smaller debts on which you pay a lot of interest, such as credit cards and store cards. If you take the time to compare different consolidation loans from a number of lenders you should be able to find one with a competitive rate of interest, and this means that you can enjoy better value for money on your borrowing.
When you use a consolidation loan you can effectively wipe out debt problems, and make life far easier for yourself. Although you will actually still owe the same amount of money you will only have one debt and one creditor to deal with. This reduces the chances of missed and late repayments due to confusion with financial management, and can reduce the amount of money that you have to pay out on your debts each month, leaving you with more disposable income.
If you are a homeowner you can get a secured consolidation loan, and this could help to further reduce your debt problems. This is because you can spread your repayments over a longer period, which means that you can keep your outgoings down. You will also be able to borrow more money with a secured consolidation loan, although this will be based on your equity levels and other factors, and can therefore borrow an adequate amount to cover repayment of all of your existing debts.
In order to effectively wipe out your debt problems through debt consolidation you need to exercise willpower and determination, as you need to be careful that you do not run up your original debts again. If you go on to spend again on your credit and store cards after consolidating them you will find yourself in an even more difficult situation than you were originally with a higher level of debt to deal with. Providing you avoid running up further debts and simply make repayments on your consolidation loan each month you could find that this is one of the most effective debt management solutions for your needs.
Related Articles:
What is the Role of Debt Consolidation Companies?
Monday, March 5th, 2007There are many forms of lender on the market. Not all of them are banks. Debt consolidations companies play a specific role in the debt market. They often take on higher risk loans, and for this they will sometimes charge slightly higher interest rates on standard personal loans.However, they are far cheaper than the short term loans they usually replace and therefore continue to grow in popularity. (more…)
What Happens if I Can’t Pay the Debt Consolidation Loan?
Monday, March 5th, 2007This is a very good question to be asking your self before taking out any type of loan or making any financial commitments. Debt consolidation loans are becoming increasingly popular with consumers in today’s over indebted market place. They are often available to those with poor credit histories and other borrowers who are considered high risk for various reasons. (more…)