Credit card debt spiralling out of control?

Northern Ireland has a serious debt problem. According to research by debt charity Step Change, the average amount of debt in Northern Ireland has now reached £14,367 and it’s growing.

Credit card debt is the most common form of unsecured debt people here are struggling with, with more than two thirds, 67.2%, of people who seek debt advice dealing with more than £8,000 in credit card debt.

With wages stagnant since the financial crisis a decade ago and the cost of living continuing to rise, it’s no surprise that many people have been forced to turn to credit just to make ends meet. With inflation rising and no sign of wage growth, the situation could still get worse.

In fact, with speculation mounting that the Bank of England might raise interest rates soon, many borrowers could find themselves having to pay more if their lender choses to pass on some or all of the increase to their customers. This won’t affect the rate you’re currently paying on existing loans, but if you borrow more money you could find it more expensive.

If you’re one of those people struggling with unmanageable credit card debt, there are options, however.

At Get Help With Debt, we can write off thousands of pounds in debt and help you to manage the remainder, so it’s affordable for you.

Go online to our website and take our free online assessment, then book your free, no obligation consultation with one of our debt advisors to find out how we can help you.

Once you’ve met with your advisor we can present you with a range of bespoke solutions and you can make an informed decision about what approach is best for you. After that we do all the hard work, handling all third party communications for you, so you don’t have to deal with your lender anymore.

So, if you’re in Northern Ireland and struggling with debt you can’t afford, go to www.gethelpwithdebt.co.uk and start the process of moving on from your debts.

More than a third of house sellers cutting asking price.

According to the latest housing market data published by Rightmove, 37% of sellers with properties already on the market have reduced their asking price since first listing, the highest rate in five years for this time of year.

Sellers are reducing asking prices by 0.8% on average, but Rightmove suggests that these reductions may still be too optimistic and many sellers will be forced to continue lowering their asking price in order to complete the sale.

Miles Shipside, Rightmove director, said; “Given that the market has been price-sensitive for a while and a five-year high proportion of sellers are slashing their prices, some sellers and their agents are over-pricing. These sellers may well be asking themselves if they could have saved some time and stress by pricing a lot more conservatively than an average of more than six percent ahead of what the market subsequently proved it could sustain.

“The danger of going too high at the outset is that you jeopardise that vital initial three week period, and may have to start on a series of price reductions while potential buyers watch and assume that no-one is buying your property because something is wrong with it other than the price.”

The rise in the number of house sellers cutting their asking price is going to add to worries for homeowners struggling with negative equity and other property debt problems.

The news follows the decision by the Bank of England’s Monetary Policy Committee to raise interest rates from 0.25% to 0.5%, putting up monthly repayments for many borrowers, and data from the Royal Institute of Chartered Surveyors showing that house prices are falling in areas across the country.

We can help.

Falling house prices will leave many homeowners with outstanding mortgage debt worried about negative equity.

Negative equity describes a situation where the value of a property is less than the amount still owed on the mortgage on that property. This can make it impossible for people to sell their property if they need to move on, or if their repayments become unaffordable, as the sale of the house will not raise enough to pay off the remaining debt, leaving the borrower still owing the shortfall.

At Negative Equity UK, we offer bespoke solutions to help our clients deal with their property debt.

If you are worried about the impact the rise in interest rates will have on your finances, take a look at our reviews and contact us on 0161 631 2727 or online at negativeequityuk.com to arrange an initial free, no obligation consultation.

Need Help With Debt?

Debt is a normal part of most people’s personal finances. Everyone relies on credit cards, over drafts, personal loans and mortgages at some point in their lives. Whether you’re renovating your house, paying for a holiday or just tiding yourself over until payday, everyone borrows.

For some people, however, debts can become unmanageable. Sometimes a pay cut or losing a job can make your repayments unaffordable. Sometimes low wages lead to chronic debt you can’t escape from.  Whatever the circumstances, we can help.

At Get Help With Debt, we can help you to write off thousands of pounds in debt and provide you with a range of options for dealing with the remainder.

For some clients a debt management plan might be what they need to get to grips with their debt. With a debt management plan, you will only have one monthly payment to make and you will only pay what you can afford until your debts have been cleared.

For others, an individual voluntary arrangement, or IVA, might be the best option. An IVA is a legally binding agreement between you and your lender and could make you debt free in as little as five years. We’ll stop your creditors from calling or writing to you to demand payments and freeze any late fees or charges you’ve incurred.

For a few clients, self-petition bankruptcy might be necessary. You will have to put any available disposable income you have towards this for three years, but you won’t have to deal with your creditors anymore and once your bankruptcy is completed you will be able to start fresh.

So, if you’re living in Northern Ireland and struggling with debt, whether your credit cards have gotten out of control, store cards are mounting up or you have a mortgage you just can’t afford, we can help you.

Go online to www.gethelpwithdebt.co.uk and take our free online debt assessment or request a call back to discuss your situation and take the first step to becoming debt free.

 

Bank of England raises interest rates.

The Bank of England’s Monetary Policy Committee has voted to raise interest rates by 0.25% to 0.5%, the first time in ten years rates have gone up, in a move that could have a significant effect on borrowers.

The decision to raise interest rates will see the average homebuyer with the typical mortgage in Britain of £175,000 pay about £22 every month. The 500,000 borrowers on one of the most popular deals, Nationwide’s base mortgage rate tracker, will see their interest rise from 2.25% to 2.5%, taking the monthly bill from £763 to £785 on a £175,000 loan.

For many home owners, the rate rise won’t have a dramatic effect on the affordability of their mortgage, but for those borrowers who are already struggling to keep up with their repayments this increase could be enough to make their monthly repayments unaffordable.

At his press conference announcing the decision, Mark Carney, Governor of the Bank of England said that the Bank was aiming to continue slowly raising interest rates over the next several years, which could increase pressure on borrowers.

How will rate rises affect you?

For existing mortgage customers, a rise in interest rates will lead to higher monthly repayments. For the 57% of borrowers currently on fixed rate deals, the effect won’t be felt immediately, but depending on when their two or five year term finishes, these borrowers will eventually face higher repayments. Homeowners are being warned that they could be facing a ‘payment shock’ if they fail to remortgage and end up paying their lender’s standard variable rate. Borrowers with Santander, for example, could see their SVR go from 4.49% to 4.74%.

For borrowers with variable or tracker mortgages, or those with interest only loans, the effect will be felt more immediately. Lenders with the lowest standard variable rates, those below 5%, will probably be the first to increase their rates.

Meanwhile, homeowners with interest only mortgages will also see their monthly repayments increase, but these higher monthly repayments might, in some cases, reduce the amount of money they are able to put into a repayment vehicle to repay the principal loan when the interest only term ends.

Jeremy Leaf, former chairman of the Royal Institute of Chartered Surveyors, said; “Although the change is very small, it could have a disproportionate impact on many, especially first time buyers and sellers, who have told us they have high loan-to-value mortgages and/or other loans. The direction of travel for interest rates will have a bearing on future plans. Inflation rising faster than salaries is also adding to the pressure on household finances.

“It’s not the increase itself but the impact on buyer confidence and a property market already compromised by political and economic uncertainty, which is more relevant.”

`We can help.

At Negative Equity UK, we’re property debt specialists. If you are worried about the impact the rise in interest rates will have on your finances, take a look at our reviews and contact us on 0161 631 2727 or online at negativeequityuk.com to arrange an initial free, no obligation consultation.

 

I Need A Debt Write-Off

How Can You Write Off Debt?

Anyone who is or has been deep in debt will admit that there are moments when they close their eyes and dream of someone waving a magic wand to relieve them of their problems and pain.

In the real world, however, that is wishful thinking.

But there are real-life solutions to the problem of debt and a real means of recovery whereby those who fear they will never survive the trauma in which they find themselves are able to do so after all.

It is estimated that half a million people in the UK are beset by very serious debt problems in the form of unsecured loans they are unable to pay. That estimate is believed to be rather conservative, however.

Secured debts are usually sizeable loans made against the market value of a tangible asset – a house or a car, for example, which could be repossessed and re-sold to help clear the loan in the event of the borrower defaulting on repayments.

Unsecured debts tend to be smaller having been run up on credit cards, store cards, bank overdrafts, pay day loans or student loans.

A major problem with unsecured debts is that while, as individual loans, the amounts involved are smaller than in the case of a secured debt, there do tend to be quite a number of them. When those are totalled up, the aggregate is considerable.

And because the creditor has taken a risk by advancing unsecured money, the interest rate charged for that is always higher.

Once a borrower starts to have problems in trying to service those various unsecured debts on a monthly basis, the financial noose around his or her neck tightens quickly. Cue a flood of letters and phone calls demanding payment(s).

Having advanced you money – minus any security from you in the form of assets – in the expectation that you will repay them, fully and on time, lenders start to apply pressure as soon as you fail to deliver.

They see that you are struggling, so they want their money back before you go disappear beneath a tidal wave of debt.

Your inability to repay may stem from factors beyond your control – unemployment, reduced working hours and earnings, sickness, an accident, divorce or bereavement for instance. All such issues are important.

The fact that you are on the Get Help With Debt website suggests you may have a money problem. If so, the question you want answered is how can you hope to write off up to 80% of your debt?

The answer is as follows: experts on the complex laws on lending, banking and borrowing, all the actions relating to each of those areas and the possible repercussions, sit down with you, examine your position in detail, work out what you can – and, equally importantly, cannot – afford to pay and inform your creditors of those realities.

They act with you and for you, providing a buffer between you and your creditors.

Because lenders recognise them as being experts who, crucially, are licensed and regulated by the Financial Control Authority, the personnel behind the Get Help With Debt website are highly respected within the UK’s finance sector.

Your creditors know that what they – as your representatives – will propose is going to be the fairest option and the one best-suited to your particular circumstances.

Ordinarily this will be one of three options – a Debt Management Plan (DMP), an Individual Voluntary Arrangement (IVA) or bankruptcy.

A DMP is an agreement between you and your creditors to pay off ALL of your debts.

This tends to be deployed where the debtor can afford to pay creditors a smaller amount each month over a longer term, or where the debtor will be able to make repayments in a few months, but not at this moment.

An IVA is based on your ability to repay SOME of the debt every month, usually for five years, at the end of which all remaining debt – sometimes up to 80% – is written off.

The IVA is presented to all of your creditors and if the majority of them accept this new repayment proposal, it becomes a legally binding contract between you and them.

The heat is off; in an instant your monthly repayments are reduced dramatically to a level you actually can afford.

After 60 months the IVA will have run its course and any remaining debt is wiped off the slate, leaving you to rebuild your life and move on.

In certain circumstances, bankruptcy is the best option. That, however, is only the case very occasionally.

Check the contact details on the Get Help With Debt site and follow up with a phone call. It could be the best one you’ll ever make.

Struggling With Unaffordable Debt?

Struggling With Unaffordable Debt?

Unsecured debt is a serious problem affecting many in the UK. Individuals, families and businesses alike are victims.

So what is unsecured debt? And, more importantly, what can be done to help those drowning beneath its waters?

An unsecured loan is one that has not been secured against an asset or is not covered by a guarantor.

Examples include credit card debt, utility bills and arrears on other types of loans or credit given to a borrower who was not required to provide collateral to offset the risk of non-payment.

This contrasts against a secured loan for the purchase of a house or a car, for example.

Those loans are secured against the asset, which can be taken from the borrower if he or she fails to maintain repayments in keeping with the terms and conditions of the agreement they signed with the lender when the loan was set up.

‘Repossession’ is the technical term in this instance.

But unsecured debt is different as there is no house or car to offset it.

Always an unsecured loan constitutes a sizeable element of risk for lender. Why? Because there is the possibility that the borrower will fail to make full repayment of the loan. And there is no house or car to compensate for this.

So what action can the lender take against the borrower in such a situation?

They can also report the borrower to a credit reporting agency, sell the debt to a collection agency or sue. If they file for a law suit, the court may force the borrower to use specific assets to repay the unsecured debt.

In view of the element of risk to the lender, unsecured loans carry a higher rate of interest. Obviously, then, this in turn translates as the borrower having to make bigger repayments.

But if that borrower then runs into problems as a result of sickness, unemployment, reduced working hours, the loss of a partner – either through bereavement or divorce – or for some other reason, the fact that those repayments are bigger simply adds to the problem.

The fact that you have visited this website and are reading this article suggests you may have recognised that you need to get help with resolving unsecured debt problems.

If so, you will be relieved to learn that such assistance is indeed available from reputable, knowledgeable advisors who excel in finding statutory and non-statutory solutions to debt.

The Get Help With Debt staff certainly fit the bill.

They are gifted individuals from a variety of backgrounds in banking, finance and the law relating to those areas. So if you need to get help with debt, be assured that they will find solutions which satisfy the law as well as meeting the requirements of your creditors.

Their statutory solutions are IVAs, bankruptcy – but only very occasionally – and debt relief orders. They are regulated by the Accountants’ Regulatory Board, thereby guaranteeing their clients the best possible advice in their particular situation.

Their non-statutory solutions are debt management plans and informal settlements. These, too, are regulated – in this case by the Financial Control Authority, the independent regulators of all reputable financial organisations in the UK.

A word of warning: never seek help or take advice from any individual or company not regulated by either of these two bodies. Big mistake.

Those who are in over their heads with unsecured debts almost certainly are highly stressed at this stage. If so, they will not be thinking clearly. And if they are not conversant with all of what is happening they are in no position to navigate a route out of this financial/legal jungle.

So they need guidance in order to protect themselves.

It is vital, too, they know that even in their seemingly precarious state, they continue to rights. And options.

And this – by virtue of their experience and know-how – is where the experts who provide help with debt shine on behalf of those in trouble.

Joe or Joan Average’s perception of their debt position is: “I have X amount of pounds going out on debt repayment per month and I don’t have enough coming in to service it.”

But Get Help With Debt’s experts assess things differently. Their questions at the outset are: What are the priority debts? What are the absolute essentials, the things that MUST be paid?

And what are the non-priority debts?

That simple priority/non-priority split makes things look very different. Immediately. And once that difference has been established, those experts can get to work on finding solutions to your problems.

Follow the contact details on this Get Help With Debt site and benefit from the assistance you require.

Get Out Of Debt With Our Personal Debt Solutions

Get Out Of Debt With Our Personal Debt Solutions

Anyone who is, or ever has been, up to their eyes in debt will know the pressure and stress it produces.

Some view themselves as losers – incompetent, incapable and naive in their monetary dealings. Some regard themselves as being innocent victims of others’ duplicity and unscrupulousness.

But in all probability, neither of those views is wholly accurate. Most of us are not utterly incompetent. Nor are most of us wholly dishonest and knowingly exploitative of others.

So being in debt probably is not as a result of our own stupidity or others’ cunning.

Nor is it likely to have been caused by wilful irresponsibility or knowing recklessness on our part. Very few set out intent on becoming indebted and dismissive of the consequences.

A far more probable scenario is an unforeseen and unfortunate change in our circumstances. Unemployment, reduced earning capacity, debilitating illness, an accident, divorce or bereavement are some of the factors which can throw a grenade into what was our lifestyle.

Any one of these setbacks can affect our ability to service loans. And where outgoings are greater than our income that is the start of debt problems. We begin to fall behind with mortgage repayments, for example.

That’s called ‘being in arrears’.

Property debt and mortgage arrears are huge problem in the UK, witness the frequency of County Court Judgements (CCJs).

Having a CCJ against you is a significant disadvantage in that it adversely affects your credit rating. Banks and loan companies use such information in deciding whether to give you credit or loans, so clearly this is going to create problems further down the line.

A CCJ remains on the Register of Judgements, Orders and Fines for six years, though if you pay the full amount within one month you can have that judgement removed from the register.

If you pay after a month, you can get the record of the judgement marked as ‘satisfied’ in the register. And while it will remain on the register for six years, anyone checking will see that you have paid.

Now the fact that you are reading this article on the Get Help With Debt website suggests that you, or someone close to you, may have problems with property debt, mortgage arrears or a CCJ.

Property-related debt is negative equity or overdue mortgage repayments owed to the lender.

A mortgage, of course, is a loan secured against the value of the property, which is the asset.

As property debts and mortgage arrears are non-statutory debts, the solutions to these problems tend to be debt management plans or informal settlements which – in the case of Get Help With Debt – are regulated by the Financial Control Authority, the independent regulators of all reputable financial organisations in the UK.

The problem with any secured loan is that the lender may repossess the asset against which the loan was made. Where they do that, it is in order to then sell it, thereby reducing the debt owed to them. But that is not a good position for you, the debtor, on two counts:

  1. It renders you homeless.
  2. In the event of the bank selling your house for a low price in an auction, you remain liable for any shortfall in the money you borrowed from them.

This Get Help With Debt website includes details of how and where you can get in contact with our team of experts who will be able to inform you of all your options and then, acting on your behalf, negotiate an agreement with your creditors.

Your representatives from the Get Help With Debt team will work out a realistic, best-case-for-you settlement proposal.

Occasionally – notably where there are other debts – this may result in an Individual Voluntary Arrangement (IVA) being drafted by the Get Help With Debt team’s insolvency practitioners, operating with your permission and on your behalf.

They will then present this to all of your creditors.

Such a proposal is based on a realistic assessment of your ability or inability to make monthly repayments.

If the majority of those creditors accept this new repayment proposal – and, based on your representatives’ experience, skill and hugely impressive track record, that is the highly probable outcome – this agreement will become a legally binding contract, resulting in massive savings for you.

Instantly, your monthly repayments will be reduced dramatically, perhaps by somewhere between two-thirds and three-quarters.

Usually an IVA runs for five years (60 months), after which any remaining debt is written off.

Whatever the route proposed, it will be the one which is best for you in terms of getting your mortgage back on track – the number one priority in that it secures the roof over your head.

I Need A Debt Management Plan

I Need A Debt Management Plan

Debt debilitates people. It affects their physical and mental health, robs them of their self-respect and slowly, gradually, ultimately takes away their sense of well-being having first ended their hopes and dreams.

American financial author and television/radio personality Dave Ramsey advised: “You must gain control over your money or the lack of it will forever control you.”

As advice goes, it wasn’t too wide of the mark.

It has never been easier to accumulate debt. We are encouraged to do so all the time with the entire capitalist economic system now appearing to run on tick. As a result, tens of millions of people spend tens of millions of pounds, dollars, euros or whatever else buying what they want when they want it.

Profligacy was anathema to earlier generations, of course. Our grandparents used to warn against this lifestyle, their motto having been, “If you don’t have the money to buy it, don’t buy it.”

But somewhere or other along the road we turned off away from that simple straight and narrow route and instead began to do things another way. Many have lived to regret that change, having discovered for themselves the wisdom of Mr Micawber’s oft-quoted, recipe for happiness as cited in Charles Dickens’ David Copperfield: “Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds, nought shillings and six pence, result misery.”

As long ago as 1732 physician and preacher Thomas Fuller warned: “Debt is the worst poverty.” Prophetic words.

And in William Shakespeare’s Hamlet, Polonius cautioned: “Neither a borrower nor a lender be, for loan oft loses both itself and friend.”

There is an even older proverb which urges, “Before borrowing money from a friend, decide which you need more.”

We really ought not to be too surprised, then, to find just how cripplingly undermining debt is; over the centuries – the millennia, even – the warnings against succumbing to it have been numerous, after all.

But at some point some person or group of people, who stood to make an awful lot of money from the process, decided things would be much better if we were all to start borrowing money – from them, of course – and spending it like it were our own. Never have the results of that philosophy been more obvious.

On January 13, 2016, a report by Simon Read appeared in The Independent beneath the headline, ‘Is the UK facing a debt disaster?’
It was a rhetorical question given that the opening paragraph read: ‘Shock new figures published today reveal that household debt has soared by two-fifths in just six months.’
It continued: ‘Aviva’s Family Finances report found that average debt now stands at £13,520 – a climb of £4,000 from £9,520 last summer. It is the highest levels seen in the quarterly survey for two-and-a-half years.

“It is concerning to see that household debt has grown to such levels,” said Caroline Siarkiewicz, head of UK debt advice for the Money Advice Service.

‘The rise in the figure – which doesn’t take account of mortgage debt – means the average amount owed is 24 per cent higher than in winter 2011 when the data was first recorded.

“The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016,” said Louise Colley, managing director, protection, Aviva Life UK.

‘Aviva’s reports makes for sobering reading. It suggests average credit card debt has climbed by more than a fifth in the last six months, from £1,960 in summer 2015 to £2,370 now. The amount owed on overdrafts has increased even more quickly, rising by almost two-fifths from £870 to £1,190.

‘Meanwhile, one in four families now owes money on a personal loan – that’s a rise of almost a quarter from a year ago – with an average outstanding balance of £2,080. Over the last five years, mortgage debt has also risen by a more than a fifth.’

So there, in those few paragraphs, you see all the problem areas identified – mortgages, credit cards, overdrafts and personal loans. Add payday loans to that quartet and you have a full house of debt in its various guises.

Benjamin Franklin once said: “Creditors have better memories than debtors.”

But the problem isn’t with debtors’ memories – it’s with their inability to pay, not least because we insist on spending money which we should instead be using to pay off what we already owe.

We borrow too much too readily in living beyond our means. And that translates as more going out than is coming in, resulting in misery as per Micawber.

If we are to escape it, debt must be managed. And almost certainly that will require help from an outsider with a lot of knowledge.

The good news is that such help is available from experts who know exactly what debt resolution entails and understand fully what, under the law, is required of a debtor. That’s a level of expertise most of us just don’t have.

Debt management is the answer to the question of how to get out of debt. So too is our commitment to the belief that debt relief is realistic and therefore can be achieved. Mortgage debt, credit card debt, unsecured loans, overdrafts – there is a solution for all of these.

There are different ways of achieving debt relief, though ultimately each will involve negotiation with creditors. YOU DO NOT HAVE TO DO THE NEGOTIATING. There are others who will act on your behalf.

But before they can do that, they and you have to sit down and have a very honest, to-the-point, no-nonsense, tell-it-like-is meeting to reveal the full extent of the problem and how it has come about.

Then, armed with that information, your adviser will come up with what amounts to a rescue plan designed not only to ensure your fiscal survival but to liberate you from the hardship in which currently you are entrapped. Getting free of debt isn’t so much a case of beating the wolf back from your door – it’s about making sure it never comes back to imprison you again.

Lenders listen to advisers, negotiators and facilitators they respect. If the debtor’s case is made to them by professionals of proven knowledge, they will do business.

Get Help With Debt certainly ticks those boxes. Typically they achieve 80% to 90% debt write-off for their clients, many of whom had feared  that they were beyond help.

Lenders know that a GHWD settlement proposal is only made after a thorough examination of all the facts – the size and nature of the debt, the circumstances whereby it has come about, income, outgoings, resultant ability – or inability – to pay, the precise type of loan(s) and the small print of the contract.

Their respect for GGHWD stems from experience of having negotiated with them in the past, plus the fact that they are Financial Conduct Authority (FCA)-licensed and regulated. In bankers’ eyes, that gives GHWD real status. It is also the client’s safeguard.

Loans can be re-negotiated. Loans can be written off. Banks know that attempts to recover debt take a lot of their time and money so they do the sums in weighing up how much of both they might have to spend pursuing something that ends up being irretrievable.

Loans are re-negotiated or written off every day of the week, with creditors ‘providing debt forgiveness’ to give the process its legal and technical title.
Get in touch now to speak to an expert!

Personal Debt, Do You Need An IVA?

Personal Debt: Do You Need An IVA?

Personal debt is a growing problem in the UK – and many financial forecasters are predicting that things could get a whole lot worse.

Earlier this year Louise Colley, managing director, protection, Aviva Life UK, warned:. “The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016.”

Personal debt has grown, in part due to record-low interest levels. Those have meant low-cost loans, with many having availed of the opportunity for so-called ‘cheap money’.

For many the day of reckoning has yet to come.

For others, however, it has arrived or will do so in the very near future. The number of ‘hits’ on the Get Help With Debt website confirms the level of public anxiety at this juncture.

And with so much uncertainty following the June 23 vote to leave the EU, a lot of UK citizens are keeping their fingers crossed that some of warnings as to what may happen a few months or years down the line fail to materialise.

The truth is that no-one knows for sure at this stage. It really is a ‘wait and see’ moment.

The likelihood is that personal debt will continue to be a major problem in the UK, leading to an increase in the number of Individual Voluntary Arrangements (IVAs) between those entrapped and those to whom they owe money advanced as unsecured loans.

An IVA is a formal debt solution enabling a debtor to pay back what he or she owes on unsecured loans – personal loans, credit cards and overdrafts – over an agreed period of time. This requires acceptance by 75% of the creditors.

And while an IVA is the best solution in certain situations, there are others in which a different course of action would be more appropriate and beneficial.

Get Help With Debt’s team of experts know what works best, where and when. For that reason they provide guidance best-suited to particular any given set of circumstances.

A typical IVA scenario is one in which money is owed to a number of creditors. That number may range from three to dozens.

If those debts are insurmountable, or if it is unrealistic for that debtor to continue to service an unfeasible volume of debts whilst trying to provide for their family, an IVA may well be the best solution to that problem.

An IVA can be a lump-sum settlement. Usually that money is raised through the debtor’s family or friends.

More typically, however, an IVA runs for a five-year period.

To qualify for an IVA you must be completely unable to repay your unsecured debts in a reasonable time, but able to make a reasonable monthly repayments towards clearing them.

.If  the IVA proposal is accepted  by the creditors, the borrower is required to meet all the repayment obligations to which he/she has committed himself/herself.

In negotiating an IVA, the whole premise is that it is both reasonable for you and affordable to you whilst acceptable to the creditors. But that means there is no wriggle room; it must be adhered to, without fail, from start to finish.

Provided the debtor keeps up his/her end of the bargain, creditors will do likewise. That means they will leave the debtor alone, so no more letters, phone calls or hassle.

And at the end of five years, provided the debtor has honoured the agreement, the creditors will write off any remaining debt. This can amount to a huge percentage of the original debt.

Because they know the law inside out, Get Help With Debt’s highly qualified personnel are equipped to negotiate best-case solutions to your debt problems.

In any given situation, they know what will work and what will not. So if an IVA is not the best solution, they will examine the other options to find which one is.

Always they start by contacting all of a client’s creditors to point out that the current situation is unaffordable, providing proof of why that is so.

At that, they will propose an interim arrangement to demonstrate willingness to pay what is affordable.

Meanwhile the team will work on a more permanent solution – an IVA, a debt management plan or bankruptcy.

The bottom line is that creditors are realists who know that they cannot get money where there is none. That is why they are willing to work with people whose knowledge, ability and integrity as negotiators they respect.

If, therefore, your case is presented by those your creditors recognise as being experts, it will be viewed much more favourably than would otherwise be true.

Use the contact details on the Get Help With Debt website to get advice on how best to solve your personal debt problems.

I Have Unaffordable Debt, Who Can Help Me?

I Have Unaffordable Debt, Who Can Help Me?

I have unaffordable debt, and I need help!

Debt debilitates people. It affects their physical and mental health, robs them of their self-respect and slowly, gradually, ultimately takes away their sense of well-being having first ended their hopes and dreams.

American financial author and television/radio personality Dave Ramsey advised: “You must gain control over your money or the lack of it will forever control you.”

As advice goes, it wasn’t too wide of the mark.

It has never been easier to accumulate debt. We are encouraged to do so all the time with the entire capitalist economic system now appearing to run on tick. As a result, tens of millions of people spend tens of millions of pounds, dollars, euros or whatever else buying what they want when they want it.

Profligacy was anathema to earlier generations, of course. Our grandparents used to warn against this lifestyle, their motto having been, “If you don’t have the money to buy it, don’t buy it.”

But somewhere or other along the road we turned off away from that simple straight and narrow route and instead began to do things another way.

Many have lived to regret that change, having discovered for themselves the wisdom of Mr Micawber’s oft-quoted, recipe for happiness as cited in Charles Dickens’ David Copperfield: “Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds, nought shillings and six pence, result misery.”

As long ago as 1732 physician and preacher Thomas Fuller warned: “Debt is the worst poverty.” Prophetic words.

And in William Shakespeare’s Hamlet, Polonius cautioned: “Neither a borrower nor a lender be, for loan oft loses both itself and friend.”

There is an even older proverb which urges, “Before borrowing money from a friend, decide which you need more.”

We really ought not to be too surprised, then, to find just how cripplingly undermining debt is; over the centuries – the millennia, even – the warnings against succumbing to it have been numerous, after all.

But at some point some person or group of people, who stood to make an awful lot of money from the process, decided things would be much better if we were all to start borrowing money – from them, of course – and spending it like it were our own. Never have the results of that philosophy been more obvious.

On January 13, 2016, a report by Simon Read appeared in The Independent beneath the headline, ‘Is the UK facing a debt disaster?’

It was a rhetorical question given that the opening paragraph read: ‘Shock new figures published today reveal that household debt has soared by two-fifths in just six months.’ It continued: ‘Aviva’s Family Finances report found that average debt now stands at £13,520 – a climb of £4,000 from £9,520 last summer. It is the highest levels seen in the quarterly survey for two-and-a-half years.
“It is concerning to see that household debt has grown to such levels,” said Caroline Siarkiewicz, head of UK debt advice for the Money Advice Service.

‘The rise in the figure – which doesn’t take account of mortgage debt – means the average amount owed is 24 per cent higher than in winter 2011 when the data was first recorded.

“The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016,” said Louise Colley, managing director, protection, Aviva Life UK.

‘Aviva’s reports makes for sobering reading. It suggests average credit card debt has climbed by more than a fifth in the last six months, from £1,960 in summer 2015 to £2,370 now. The amount owed on overdrafts has increased even more quickly, rising by almost two-fifths from £870 to £1,190.

‘Meanwhile, one in four families now owes money on a personal loan – that’s a rise of almost a quarter from a year ago – with an average outstanding balance of £2,080. Over the last five years, mortgage debt has also risen by a more than a fifth.’

So there, in those few paragraphs, you see all the problem areas identified – mortgages, credit cards, overdrafts and personal loans. Add payday loans to that quartet and you have a full house of debt in its various guises.

Benjamin Franklin once said: “Creditors have better memories than debtors.”

But the problem isn’t with debtors’ memories – it’s with their inability to pay, not least because we insist on spending money which we should instead be using to pay off what we already owe.

We borrow too much too readily in living beyond our means. And that translates as more going out than is coming in, resulting in misery as per Micawber.

If we are to escape it, debt must be managed. And almost certainly that will require help from an outsider with a lot of knowledge.

The good news is that such help is available from experts who know exactly what debt resolution entails and understand fully what, under the law, is required of a debtor. That’s a level of expertise most of us just don’t have.

Debt management is the answer to the question of how to get out of debt. So too is our commitment to the belief that debt relief is realistic and therefore can be achieved. Mortgage debt, credit card debt, unsecured loans, overdrafts – there is a solution for all of these.

There are different ways of achieving debt relief, though ultimately each will involve negotiation with creditors. YOU DO NOT HAVE TO DO THE NEGOTIATING, HOWEVER. There are others who will act on your behalf.

But before they can do that, they and you have to sit down and have a very honest, to-the-point, no-nonsense, tell-it-like-is meeting to reveal the full extent of the problem and how it has come about.

Then, armed with that information, your adviser(s) will come up with what amounts to a rescue plan designed not only to ensure your fiscal survival but to liberate you from the hardship in which currently you are entrapped. Getting free of debt isn’t so much a case of beating the wolf back from your door – it’s about making sure it never comes back to imprison you again.

Lenders listen to advisers, negotiators and facilitators they respect. If the debtor’s case is made to them by professionals of proven knowledge, they will do business.

Get Help With Debt certainly tick those boxes. Typically they achieve 80% to 90% debt write-off for their clients, many of whom had feared  that they were beyond help.

Lenders know that a GHWD settlement proposal is only made after a thorough examination of all the facts – the size and nature of the debt, the circumstances whereby it has come about, income, outgoings, resultant ability – or inability – to pay, the precise type of loan(s) and the small print of the contract.

Their respect for GHWD stems from experience of having negotiated with them in the past, plus the fact that they are Financial Conduct Authority (FCA)-licensed and regulated. In bankers’ eyes, THAT gives GHWD real status. It is also the client’s safeguard.

Loans can be re-negotiated. Loans can be written off. Banks know that attempts to recover debt take a lot of their time and money so they do the sums in weighing up how much of both they might have to spend pursuing something that ends up being irretrievable.

Loans are re-negotiated or written off every day of the week, with creditors ‘providing debt forgiveness’ to give the process its legal and technical title.

Get in touch now if you need help with unaffordable  debt!