Having run through step 1 to becoming debt free you will now know your total debt. Step 2 will have shown you how much you can afford to spend on debt repayments. It is almost certain that the amount you are currently spending to service your debts is greater than the amount you can afford. So what can you do about it?

Whilst it is possible for you to try and resolve your debt problems yourself, by contacting all of your creditors, negotiating with them to freeze interest, write off a proportion of your debts and reduce your monthly repayments it will take you a lot of time and effort and is not guaranteed to produce results.

By utilizing a debt solution service like ours we do all of the hard work for you. Whichever debt solution is best for your individual circumstances, be it a consolidation loan, debt management program or IVA we walk you through every step of the way ensuring the best result for you.

To obtain our free debt advice all you have to do is complete our online enquiry form (it will only take you a couple of minutes). We then analyze all of the relevant factors to determine the best debt solution for you.

By filling out our enquiry form and contacting us you have taken the first major step to becoming debt free. Providing you stick to the proposed solution for the full length of time the debt will have been repaid and you will be back on the road to recovery.

Whilst some debt solutions, such as an IVA, will have an effect on your credit rating, by making the repayments and getting debt free you have demonstrated your commitment to repayments and it is possible to repair your credit rating reasonably quickly.

Categories: Debt, General

If you have followed step 1 to becoming debt free you now have a total debt figure calculated. Now we need to know more about your income and other outgoings. This will give you an idea about how much money you have to spend each month to service your debt repayments.

Using your bank statements make a note of all credits on your account. This will include:

· Wages/Salary

· Benefits (eg. Tax credit/child benefit)

· Any other regular income

Add this up to give you a total monthly household income. Now make a note of your regular outgoings which will include:

· Mortgage/Rent

· Food

· Utilities (gas/elec/water/telephone etc.)

· Council tax

· Insurance

· Other (TV licence/subscriptions etc.)

This second figure should EXCLUDE any repayments made to service debts. Hopefully the first figure will exceed the second and the difference is the amount you can afford to repay to your creditors.

Taking into account the amount of debt you owe, the number of creditors you owe to and the amount you can afford to repay we can now calculate the best debt solution for your individual circumstances. There is a simple debt solution calculator on our website which will give you an initial idea.

Now we move on to the third and final step. Getting professional debt advice.

Categories: Debt, General

The first step to becoming debt free is to calculate your debt. The amount of debt you have will fluctuate on a daily basis as interest is added and further spending is made. However you do not need to know to the exact penny how much your debts are. A rough figure will do.

Start by looking at your bank statement to see where money is being paid out. This should show you where debt repayments are being made. Focus particularly on credit cards, store cards and loan repayments. Then dig out your last statement from each and write down the total outstanding in a list.

If you have access to online banking you may be able to log-in and find out a more exact figure. In this case make sure you note down the figure outstanding on that day. Some of the debts you may currently have include:

· Credit Cards

· Store Cards

· Personal Loans

· Car Finance

· Catalogues

· HP Agreements

Many of these type of debts attract high rates of interest so each month you leave a balance outstanding your debt problems will get worse. Replacing them with a lower interest loan over a longer period could save you money each month. However you need to make sure that once they have been repaid you don’t take out any more credit until your loan has finished. This will leave you debt free.

A debt consolidation loan is just one way of solving your debt problems. There are others including debt management or an IVA. Step 2 to becoming debt free is to identify the best debt solution and we will cover this topic in our next blog post.

Categories: Debt, General

It is not going to surprise many that recent research has confirmed debt problems have an adverse affect on people’s health, relationships and their ability to do their jobs. Anyone who has ever had money problems or worries at any time (and that must be most of us) will know that they can dominate every waking moment.

The inability to pay bills and the impact this has on your thinking, particularly when you think about the future and how you are going to survive/get out of your debt problems, means that it is an extremely stressful time. Not wanting to worry your partner or family leads to many keeping the problems to themselves, hoping than an answer will turn up. This is unlikely.

The best course of action is always to be open about it and to seek help as soon as possible. We know this is difficult to do and that talking to people about your problems can be embarrassing, particularly for men, who tend to be in charge of the family finances.

However, it is unlikely your problems are any different to the many others who suffer with debt and often talking about it, particularly with a sympathetic counselor, lifts the weight off your shoulders. Knowing that you have started to take the first steps towards dealing with your debt problems will help you sleep at night and relieve at least some of the stress.

Professional debt advice can offer you a solution to your money worries and you could even be debt free within a few years. Don’t leave it too late, debt will increase if left to its own devices. As soon as you notice a problem seek help.

The best solution for you depends upon your circumstances. This might involve debt consolidation, debt management or an IVA. A trained debt counselor will be able to give you advice about which will save you the most money and allow you to be debt free as quickly as possible.

Categories: Debt, General

There have been difficult times recently with the financial crisis and there are more to come for many with the new austerity measures announced in the recent budget. Many businesses have survived but with increased debt to keep themselves afloat.

Servicing these debts costs money and if the interest rate is high you could save each and every month by getting a business loan consolidating all of your debts. Whilst business finance has been hard to come by in the last couple of years there are plenty of signs that recovery is on its way, if only slowly.

If you have been turned down for a business loan via your bank this does not have to be the end of the line. A business loan broker will have access to many different lenders for all types of circumstances.

It might also be possible to take extra capital to invest in the business as well as clearing your debts. The way to find out is to get in touch with Yes Business Loans and see what they can offer you. It doesn’t cost anything to find out and there is no obligation to proceed if the figures don’t add up.

Yes do as much of the running around as they can for you leaving you to run your own business. In the meantime they work hard on your behalf to get the best deal available in the market for your particular circumstances. At Yes they like to say YES to business loans and finance.

Categories: Debt, Economy

We have updated our debt calculator (above) to show debt management solutions where appropriate. Debt management is available for any amount of debt, however if your debt is more than £10,000 and you owe 3 creditors or more an IVA is likely to be the better solution as it will usually involve writing off more of your debt.

Debt management consists of a process whereby all of your existing creditors are contacted to settle their loans with a reduced figure. At the same time interest is frozen on your debts. Once a new schedule of payments has been agreed you continue to make those payments until the end of the term in order to clear your debts.

Reductions in debt via a debt management programme will typically be around 40%, although it does depend upon individual circumstances. Whilst you are in the process of debt management you will not likely be able to get further credit, however once you have successfully completed the programme and cleared your debts you are on the road to repairing your credit record and becoming creditworthy again.

We offer a full range of debt solutions together with free debt advice. By contacting us you are taking a positive step to getting your finances sorted out and improving your life. Whatever your individual circumstances, no matter how bad they may seem, get in touch to see how we might help you.

Categories: Debt, General

An awful lot of people in the UK have debt in some form or another. Whilst repayments are manageable this tends to be ignored and life continues as normal. However, as the cost of living rises meeting these debt repayments becomes more difficult and then it is considered a debt problem.

In the early stages it is possible that debt management can be done without professional help. Make a budget showing exactly how much money is coming in to the household and where it is being spent. Look at ways you can cut back on any items that you can do without.

It is possible you can balance your own books if your incomings and outgoings are not too far apart. Make a revised budget and stick to it so that you can live within your means. Make repaying your debt a priority and, if at all possible, try to reach a situation where you are debt free.

Whilst this may be possible for some, for others their debts have already become a major problem through months or years of neglect. If you are unable to meet your debt repayments act as soon as possible – leaving debt to its own devices will only mean your debt problem getting worse.

When debt has escalated action is imperative. Debt management is one option to help you get out of your debt problems. Debt Management is a simple process of negotiation, where your debts are discussed with your creditors. They may freeze the interest being charged or it may be reduced, they might even write off large parts of the debt.

For free debt advice get in touch with us at IVA Debt Problem for a full explanation of all the options available dependent upon your circumstances.

Categories: Debt, Economy

We offer a debt calculator (above) which can show you examples of how you could solve your debt problems via an IVA or debt consolidation loan (subject to status). Here are a few examples (all assuming you owe 3 companies or more):

Amount owed: £15,000. IVA – write off £10,500 leaving £4,500 to pay OR Debt consolidation loan – £236 per month.

Amount owed: £20,000. IVA – write off £14,000 leaving £6,000 to pay OR Debt consolidation loan – £315 per month.

Amount owed: £25,000. IVA – write off £17,500 leaving £7,500 to pay OR Debt consolidation loan - £394 per month.

These figures are for indication only and are subject to status. Debt consolidation quotes based on 8.9% APR over 10 years. Actual figures will vary. To get a confirmed quotation complete our online debt enquiry form or give us a call.

At IVA Debt Problem we offer a range of debt solutions including debt management. We are currently working on our debt calculator to include debt management figures but in the meantime contact us for a free quotation.

Categories: Debt

As posted previously, the budget has bought little good news for anyone and the majority of people are going to need to tighten their belts to avoid getting into debt problems in the future. Amongst the headline grabbing moves such as raising VAT there are a number of other measures which have an impact on sections of society.

One of these is the future sale of the student debt book. At present the interest on student loans is subsidised by the government, costing up to £16 billion per year. The sale of this debt book could well mean an increase in student loan repayments, leaving students even further in debt.

Currently students taking a loan from the official provider, The Student Loans Company, do not have to make repayments until they are in full time work. At this point repayments are deducted at source until the full loan amount, plus interest, has been paid.

The Student Loans Company lent over £5 billion last year, and could be attractive to a number of financial institutions. However the timing of the sale has been questioned as it may not achieve the price it could in today’s depressed market conditions.

Categories: Debt, Economy

With the Chancellor due to announce his emergency budget measures tomorrow aimed at reducing the UK’s deficit, it is unlikely any of us are going to be feeling better about our household finances in the near future. The possible increase in VAT to 20% will hit everyone, particularly the poorer members of society, leading to an increase in debt problems.

For those already struggling and with things about to get worse now is the time to get some debt advice and get your finances under control, if at all possible. Don’t put it off, debt left unchecked will increase and your problems will become worse.

If your debts are relatively small and you have money coming in it is possible that you can sort out your problems on your own. Identify where all of your money is going each month and see if there is any area in which savings could be made or spending can be curtailed completely. Hopefully any measures you need to take now will be short term, dealing with your small outstanding debt and getting your finances on the straight and narrow.

If you are unable to see where savings could be made or your income is not enough to cover your basic living expenses then help is at hand. Similarly if your debts are much larger and you have gone beyond the point at which they are manageable IVA Debt Problem can give you advice and propose actions you can take to resolve your problems.

Larger debts will require more long term solutions and these can be painful and restrictive. However at the end of the tunnel is some light, and you could become debt free in the future, getting your life back on track. Now is the time to act, we face a prolonged period of austerity dealing with the budget deficit and the Chancellor is unlikely to be giving you any gifts tomorrow.

Get in touch with us for a free no obligation debt review and see how we could help you. Or use our debt calculator (above) for a quick search of your options.

Categories: Debt, Economy