Government State Benefits and Personal Debt Repayments

On June 26, 2012, in News, by Lewis Alexander
  • free credit report UK from ExperianHow much of each households weekly state benefit goes toward personal debt repayments on a weekly or monthly basis?
  • Could we find another way to relieve the many unemployed benefit claimers or the disabled on DLA etc who are suffering with personal debt problems and the associated stresses?

When we speak with our new clients daily at Lewis Alexander Financial Management, that happen to be claiming state benefits of some kind, we ask them at what point they borrowed the money they owe to their current creditors.

Some respond and say that it was when they were working but most respond by saying it was when their circumstances were the same, however, the borrowing dates back a number of years.


It is unfortunate for people that have and do suffer changes in personal circumstance and when this happens most financial commitments need re arranging.

If however, the individual has had no change in circumstance and they are on state benefits, the chances are that the borrowing that they were involved with was most probably at the time of 2005-8 where irresponsible lending was big business and many were caught up in believing that they could afford to borrow and that it was okay to consider borrowing against state benefits considering them as a regular income.

  • State benefits are not given out with the intent for the recipient to use to borrow against, they are a short term or long term supportive measure from the Government!

The suggestion we have at Lewis Alexander is for the Government to consider in a selection of trial cases, paying off directly to the lender by means of settlement in full and final, a clients debt who is currently receiving state benefits, therefore hopefully obtaining a discount for the early settlement on behalf of the client.

Yes, this would involve maybe more quantitative easing but would then be possible for the Government to reclaim the monies owed by the client by deducting it from the clients benefit payments at source. This claw back would have to be at an affordable rate to the consumer but would most probably work out less each month than currently committed to and would offer certainty of an end to the problem.

(A debt relief order was brought in for people with debts under £15000 and is a great personal debt solution but does not suit all situations.)

This may create the need for cross referencing between government departments but it would certainly relieve the pressure and stress from the individual client and add some positive cash flow to any respective creditors involved. It would also put a needed end to some of the ridiculous personal debt situations that people have found themselves in today!

Brief benefits to above suggestion;

  • Consumer peace of mind
  • Creditor cash flow
  • Government reduction in benefit payments

Here at the Lewis Alexander debt consolidation service, we believe that only an economist, analyst or someone of such a qualified standing would be able to work out further if our suggestion has any potential benefit to any party involved.

If you are struggling to clear personal debts and find that you need the help of a debt consolidation service or financial management company, then contact our Lewis Alexander personal debt helpline today in absolute confidence.

  • Call 0800 018 6868 today!

Your call is usually free from a UK land line, however, mobile call costs may vary, please check with your service provider before calling.

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Client Debt Levels for Existing Debt Management Plans

On June 22, 2012, in News, by Lewis Alexander

The amount of debt currently being managed under the wings of Lewis Alexander Financial Management escalates into many millions of UK GBP.

The average client being managed by Lewis Alexander Financial Management owes approximately £21000, whilst the amount of disposable income averages approximately £221 per client, this disposable income is offered as repayment to unsecured creditors after deducting normal and expected monthly household and living expenditure.

The repayment plans for many would identify that an IVA would be the best advice for the client but due to property ownership and other financial investments, most clients choose to stay on an informal debt management plan whilst leaving the option of the IVA (individual voluntary arrangement) open for a later date, there is nothing wrong with the client making this decision as long as the correct advice has been offered to allow them to make an informed decision.

This could be changed in the future which in some cases could be beneficial as we don’t always want to do what is best for us in life even though we have the correct advice or information to hand.

If you are struggling with personal debt issues and would benefit from the advice or help available from a debt consolidation service then please call our debt helpline which is available by dialing;

  • 0800 018 6868
  • Calls are usually free from a land line but mobile call costs may vary.
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Credit Card Debt Consolidation Advice and Help in the UK

On June 13, 2012, in News, by Lewis Alexander
  • free credit report UK from ExperianAre you one of the 180000 people in the UK that are continuing to struggle with mortgage repayments!
  • Is this due to rising minimum credit card and loan repayments or down to a reduction in household income, or both?
  • It could even be due to another change your in personal circumstances!

At Lewis Alexander Financial Management, we speak to many people daily who do not understand that the mortgage they have should take a priority regarding repayment over any unsecured credit card or loan or other unsecured borrowings.

When dealing with credit card and loan companies, you should be advised that your monthly mortgage payment is the most important but this information is not always forthcoming!

The reason why your mortgage should take priority over your credit card debts or other unsecured borrowings is because the mortgage / secured loan is secured against your property meaning that if you fail to keep up repayment you could be at risk of losing your home due to repossession.

  • Falling into the trap of paying credit card and loan repayments before your monthly mortgage repayment is very dangerous when looking at the financial and legal implications.

If you find yourself in the above position you should take advice immediately from a personal finance consultant, your income and expenditure will need assessing and once this has been done, you will not only know what you can afford to pay towards your outstanding credit card and loan balances but you will also know if you are able to sustain your current spending plans as the assessment can identify what is going wrong.  You may know what the problem is but if you do not deal with it, the problem will escalate and become quite unmanageable.

Credit cards and loans and other unsecured borrowings can be put into one monthly repayment using different forms of debt consolidation.

Debt consolidation services can help you to consolidate all your unsecured credit cards and loans and store cards and overdrafts into one monthly repayment. This is done sometimes with another loan but usually if the client is struggling, a debt solution such as a debt management plan or IVA (Individual Voluntary Arrangement) can be more suitable or appropriate.

Debt consolidation services can help and assist you to clear financial problems without increasing your borrowings any further.

  • If you require assistance with credit card or loan repayments contact Lewis Alexander Financial Management today, your call is usually free from a land line – 0800 018 6868.
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