Archive for category Debt Advice and Help
Debt And Critical Ilness
Posted by admin in Debt Advice and Help on November 10, 2009
Summary
Overwhelming costs from poor health is one of the most common place reasons for people looking for debt advice.
As in times of chronic illness people are unfit to earn or are dependant on state benefits, income deficits can magnify debt problems in several ways. Stress caused by debt is in itself a major contributing factor to health problems.
Examples of advice consumers are asking for includes: Free Debt Management Plans , Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), bankruptcy advice, administration orders, general money advice and budgeting advice, Protected Trust Deeds, Individual Voluntary Arrangements (IVA’s), administration orders, general finance management and budgeting, Free Debt Management Plans
Debt advisers generally spend more time with clients burdened with debt from ill health because they appreciate the particularly taxing times they are experiencing. There aim is to free people from the strain of debt problems and destroy debt.
The reasons for debt during illness are many and varied. The usual factors that lead to debt problems for those suffering from poor health are as follows:-
• The rate at which their income has fallen.
• When you are sick you tend to neglect finance issues.
• It can be more difficult to resolve debt problems with clients whose health is deteriorating.
• Some clients get into money problems because they have increased costs related to their poor health.
• Respite care can be expensive.
• Debts can be stacked up by the additional cost of transport for treatment.
• Repaying debts can dramatically lower the households disposable income and the reduction in profits due to sickness, makes the circumstances even worse.
• The illness may mean that carers have to be hired.
• The situation can be exacerbated if the primary earner job is physical. It makes getting back to work take that bit longer.
• Similarly, problems related to mental health may force people to be off work for particularly long periods.
If you have to acquire a new job many more difficulties develop. Although there are strict employment laws in the UK, some people with poor health often develop debt issues because they’re unable work normal hours. For those with long term health issues, dependency on state benefits will make their financial issues much difficult to resolve. The problem is that many people suffering from health problems do not qualify for any Disability Living Allowance.
So what can be done? If you’ve already gotten behind on your debts, your creditor will normally suggest ways to pay off your arrears gradually, in parallel with your usual payments. And if you’re unable to pay these extra payments, you could possibly append them to your loan or delay them for a time. It will mostly depend on your credit history. So pay as much as you can each month. Keep up frequent payments even if you have to vary them as this shows that you are reliable then your creditors are more likely to treat you sympathetically and you could might reduce the arrears charges as well.
Take our tip and go online for debt advice. It’s discreet and reliable.
Debt Problems? A Service Breakdown
Posted by admin in Debt Advice and Help on September 7, 2009
Summary
If you are under pressure from creditors, you need to read this article. It outlines the three main debt advice services and describes the services they offer.
As Scotland’s recession develops, debt consultants are being bombarded by households desperately trying to organize their mortgage repayments, credit cards and loan repayments. There has been a 40 per cent increase in people in arrears on mortgages and secured loans say the Government, compared inquiries in 2008. The Consumer Credit Counselling Service, which additionally offers free debt advice, takes as many as 1,500 calls per day, while calls to the National Debtline are up 35 per cent. So, if you are burdened with debt problems which of these confidential services help you?
The Citizens Advice Bureau (CABs) , who are they? They area a network of more than 3,200 bureaux around the Great Briton operated by volunteers. The mass of the offices have trained debt specialist.CAB (The Citizens Advice Bureau) One of the largest charity organisations in the United Kingdom manned to assist in dealing with most problems encountered in everyday life including debt consultation.
1. What do the CABs do? To begin preceding there advisement, they need to appreciate your income and outgoings. So they will help you to build a list of creditors with income and expenditure.
Once this is finished, they will double check whether your profits can be expanded. For example, you may not claiming full benefits alternatively maybe you are using the wrong tax code. Then they will consider your family costs. They look at your household bills and finance repayments to see where you can save cash. They look at your family expenses and finance repayments to see where you can save cash. Then they will consider your family expenditure.
Your debts will be sorted into priority debts – that’s payments such as mortgage or rent, council tax and utilities – and your non priority ones, such as Hire purchase, credit cards and unsecured loans
You will then be guided through the process of setting up an Individual Voluntary Arrangement (IVA) with your creditors.
The adviser at the CAB will then help you to negotiate a repayment plan with your priority creditors – your mortgage lender or landlord, local authority and utility companies. The balance of your income after meeting your family’s other living expenses can be offered to non-priority creditors based proportionately on how much you owe to each of them..
During the negotiations with the unsecured lenders the CAB consultants ask for the charges to be suspended which is usually agreed to by the creditors due to precedent in court rulings. They can also be of assistance if your home is under threat of repossession and with any other court actions.
The bad point: more and more of us struggle with debts, their services are overloaded, so you may have to wait weeks, even months, for an appointment.
The good points: The CABs service is usually face-to-face, which means they can deal with the paperwork with you. They can then sit with you while you talk to your creditors. They may also help you deal with the Courts
The Consumer Credit Counselling Service (CCCS) – The CCCS mainly operates via telephone and through there website although it is possible to visit one of their 10 regional offices by appointment
CCCS What do they do? The CCCS will draw up a budget with you to see how much money you really need to live on. Then the remaining money can be used to repay your priority creditors and then your non-priority debts. Most of the serious cases join the CCCs’s debt management programme. The CCCS will then negotiate repayments with the creditors and ask to freeze charges and interest.
Once in a debt management plan, you make one payment each month to the CCCS and they assign and dispense that money between your creditors thereby deducting the entire amount from your debt.
The good points: Debt management plans are easier to manage than continuing to repay several different creditors yourself. You can anonymously receive online counselling through a question-and-answer service.
The bad points: In order to enter a debt management plan, you will need enough spare income after essentials.
ND The National Debtline – The first and the original telephone-based debt advisory service.
What do the ND do? The ND send you a help pack containing forms and documentation including example preformatted letters to send to your creditors. They can also council you through your credit situation and offer information on what your creditors can do legally and suggest ways you can increase your income.
The good points: The service is quick and packed with constructive information offering assisted self-help.
The bad points: They will not speak to your creditors on your behalf. You are on your own.