How to find out if you are eligible for IVA

Being in debt without enough income to cover it is a situation in which no one wants to be found. The first thing that comes to mind when that happens is bankruptcy.  But, that doesn’t need to be the case for everyone. Nowadays, there is one pretty good alternative to that. Individual Voluntary Arrangement (IVA) is a government program designed to be an alternative for a large group of people sitting on the brink of bankruptcy. However, IVA is not for everyone as not everyone is qualified to participate in it. There are several ways to check if someone qualifies for IVA, here is an overview on how to check if you or someone else is eligible.

The fastest and most effective ways is online via websites such as http://www.ivadebtcalculator.co.uk . They are easy to use and can help you determine if you qualify for IVA and if so will it be appropriate to your specific circumstances.

An alternative to IVA Debt Calculator is calling an authorized insolvency practitioner. They are trained in debt management with the help of the IVA program. Not only that but they also have the experience to give you honest and quick respond whether you qualify or why IVA is for you. It’s always for the best to first call them and explain them your debt situation. Only by that as well as by few more questions you will answer they will tell you whether you are qualified for IVA. If you meet the eligibility criteria they will arrange a meeting at which they will walk you step by step through the procedure.

On the other hand, even without calling anyone the basic eligibility criteria are pretty simple:

You need to be resident of England, North Ireland or Wales.

To have at least reasonable income

To have a debt over £12.000

To be willing to participate in the program

How to get a mortgage in this economy

How to get a mortgage considering the current economy trends is a big issue for many Scotsmen. Times are tough, the economy is struggling to get out of recession and there is an ongoing concern how things will turn out in the years that come. Very often buying a house is a necessity which cannot be avoided. Getting a mortgage in Scotland has become a privilege to only those with full time jobs and really solid incomes. However, as it turned out getting a mortgage is not as hard as paying that same mortgage. Keeping pace with old debts and adding a mortgage to it can be overwhelming for most of the working people.

The best way to deal with mortgage rates as well as other debts is with the help of the Debt Arrangement Scotland program which is intended to Scotland residents faced with debts problems, mortgage debts included. Applying for the Debt Arrangement Scotland program is pretty easy and everything you need to know can be found on the internet. The program is backed by the government and any resident with full time job can harvest its many benefits. Here is what you get with the Debt Arrangement Scotland program.

Once you enter the program all of your charges and interests will be frozen so your creditors can’t add interest over interest on your overall debt. What you owe at the moment of entering the program is what you get to pay, nothing more nothing less. Also, thanks to the program you can rest assure that your assets, such as your home and car won’t be affected. On top of that your debt will be restructured so your rates match your incomes. That way you get to pay your full debt for a period from three to five years.

Birmingham Debt Advice- A Few Tips

debt-adviceIf you are residing in Birmingham and have a lot of debt on your head, all is not lost. Most of the people often think that being in debt can prove to be detrimental for their futures, mainly because they are unable to manage their finances in a better manner. If you are a poor finance manager, you might find it difficult to pay off your debt instalments on time. As delays begin to occur in your debt repayments, the overall amount that you owe might begin to rise due to the interest and late fees that are charged on it. As a result of this, you’ll soon end up paying a greater amount of money than you had borrowed, and this figure will continue to increase significantly. So, what do you do to make sure that your debts are not as high? Here are a few tips:

Create a repayment schedule

One of the most important things that you need to do is to create a repayment schedule. A repayment schedule allows an individual to estimate the amount of time that it would take for them to repay their debts, and more importantly, it keeps them in touch with their repayments. As you find yourself crossing out one mark after every installment that you pay, you will automatically become motivated to pay off the debts. Ultimately, the debt repayments will soon become a priority, and hence will ensure that you will be able to pay off the debts within a minimal amount of time.

Contact a Debt Advice Company

Throughout the United Kingdom, there are a whole host of different companies that provide debt advice, completely free of charge. Some of these companies generally only provide advice via the telephone or via the internet, while there are some, such as the Citizens Advice, which also provides home visits as well as allowing you to have a face to face conversation with one of their officials. This allows the customer to share their fiscal matters in a much clearer detail, and more importantly, allows the company to provide debt advice that is tailored exclusively to one’s needs and requirements. Ultimately, this proves to be a lot of help for people who find it difficult to manage their finances by themselves. Moreover, since these debt management services are completely free of charge, you are getting top notch services without having to pay a single penny!

Go for debt consolidation

If you have a lot of payments on your head and are finding it difficult to pay them off all at once, one of the best pieces of Birmingham Debt Advice currently available is to go for debt consolidation. Debt consolidation services are offered by numerous debt management companies, and will allow you to make one instalment per month, of a proportional size to your outstanding debt, rather than make a litany of different payments. Ultimately, this will allow you to manage your finances in a much better manner. 

Debt Management in Scotland

Debt Management Scotland

Too many credit cards and inadequate means to pay off the bills that keep arriving at regular intervals is a problem that several Scottish residents are facing today. The magnitude of the problem is alarming because more than 50 Scots are applying for sequestration or bankruptcy every single day. Debt management can be simple and easy when you know what you owe to others on a daily basis.

Mix your credit/debit cards

When your credit scores are healthy, credit cards may be available just for the asking. If you do not go on a swiping spree, this can be a very helpful tool in managing your personal finances. A simple approach is to go with a mix of debit and credit cards. You have some cash left in the bank and the debit cards work until you have exhausted that. The day the debit card does not work, that is the first sign of trouble brewing. Switch to the credit card and start noting down every expense that you incur. At the end of the month, spend some quality time with your family to explore where your home finances are headed for.

Say no to unwanted credit cards

Simply because some lenders are offering credit cards with a decent limit on that, should you accept them? They are not giving you a gift and every time you use credit, there is a stiff cost attached to it. Your swipe happy fingers will never know it until it starts hurting deeply. One way to manage home finances more effectively is minimizing the number of credit cards in use. Do remember that the credit card marketers will keep haunting you only till your credit scores start climbing down. If you learn how to say a big ‘no thank you’ to them, you are preventing your creditors from spoiling your sleep.

Do not use credit cards to splurge

The best use of credit cards is to fend yourself from a rainy day. Your next pay check is just a couple of days away, and you have missed paying the school fees for your kids. This payment can’t wait until the pay check arrives and therefore is a valid reason to put your credit card to good use. In doing so, you are also immediately registering your debt in your mind and can squeeze a bit to pay off when the pay check arrives. Over the next couple of months you scrape the 20s and 50s to account for the credit card dues and put that money back into your bank so that the debit cards can work for you.

Find quality information

If you find yourself in a situation where your debts are getting out of control (Check your credit score regularly since that is a good pointer to how you manage your debts), the digital world offers wide ranging genuine help to get you back on track before things get worse and you have to apply for one of the debt solutions and suffer without credit for long years to come.

What is a Protected Trust Deed?

Managing debt can be very difficult if you do not know how to manage your finances better. If you miss a few payments, the amount of interest will continue to increase and you will soon be left with a much bigger amount than you could have paid off previously. As a result of that, you are likely to become a target for the constant harassment of creditors. They are likely to harass you and your family and even threaten you with legal action until you clear their dues. Most people, when they are subjected to such means of mental torture, likely break down. However, that is not the solution.

Instead, the people of Scotland has a much better option. They can opt for a trust deed. The trust deed is a voluntary arrangement between two parties, the debtor and the creditor, which is set in place by the Insolvency Practitioner. An insolvency practitioner is a person that can be hired by a debtor in order to help him manage his debts properly. The insolvency practitioner will arrange a meeting with the creditors, and put before them a proposal which shows the amount of money that you can pay each month.

Basically, you are asked to make reduced payments over a period of 4 years, and at the end of the period, whatever debt is left unpaid is written off. However, the creditors have the option to suggest new adjustments to the proposal, or they can even refuse it outright. However, if a creditor agrees with the proposal and accepts it, the trust deed will become ‘protected’. This means that the creditor is now unable to add any more charges or fees on the initial debt amount, while they can also not threaten you with legal action or harass you in any possible way.

The protected trust deed serves as a great way for debtors to protect them from further harassment from the creditors, and also allows them to pay a set amount of money over a period of 4 years. Whereas they were previously making large amounts of payments as the amount of interest continued to grow, debtors will now be making controlled, reduced payments, ultimately clearing their mind and providing them with a set schedule to follow.

There are certain drawbacks of the protected trust deed as well. The biggest disadvantage of the trust deed, however, is that all existing action that was enforced, such as bank arrestments or earning arrestments will continue to remain in effect, while home owners will also have to deal with equity in their houses. Secondly, for as long as you are in the Protected Trust Deed, you cannot have a debt any greater than 500 GBP on your account. Also, whenever a person enters a Protected Trust Deed, their credit file is negatively impacted for the next six years, as a default is shown on the file. There are certain contracts of employment which prevent employees from signing a trust deed, as their contract prevents them from opting for an insolvency solution.

Therefore, even though the protected trust deed does have a great deal of benefits, there are a host of drawbacks associated with it as well. However, for people who are overburdened with a lot of debt, signing a Protected Trust Deed is a great idea and will effectively help them in getting out of debt in a much shorter period. However, make sure that you find a good insolvency practitioner, as they will also charge their fees from your monthly repayments, which means you’ll be paying a slightly extra amount.