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  • Are your monthly credit card repayments higher than your monthly mortgage payment?
  • Will you still be able to afford the minimum payments on your credit cards and loans in 3 months time?
  • Do you need help to manage and clear credit card debt and unsecured loans?
  • Are you paying credit cards and loans before you pay your mortgage each month?

Some consumers are finding that the payments they are making to credit card and loan commitments each month are getting, or have already gotten higher than the payments they are making to their mortgage or rent.

This is a very common problem but most people think they are the only people suffering with this problem until they seek professional debt consolidation help or advice.

Debt Solution Finder

The problem is common because the credit card payments and balances are compounding with interest and charges. It is a fact that if you are unable to earn two months money in one month, you may never get ahead. This is because the cards are designed to increase if you are not paying more than the minimum payments.

Most people think that by paying the minimum payment each month on a credit card that the balance will stay the same or reduce, this is not the case. You need to pay more than the minimum otherwise you are only servicing or renting the increasing debt. The aim is obviously to reduce and clear it.

The UK consumer is conditioned to living with some sort of unsecured debt or borrowings, be it a loan, credit card, store card, overdraft, catalogue, or some other form of unsecured credit but this is not the best way to be if you desire a future without financial problems.

Here at Lewis Alexander Financial Management, we see mortgages as a “life debt”, this is because at some point in life, most UK residents over the last 50 years were educated to believe that owning their own home, is or was, the best way to end up in life financially. We are not here to argue that point and when we look at other large European countries such as Holland, home ownership is on the decline and renting is of preference to most of the population.

The real problem is that consumers are not prioritising the secured mortgage or 2nd charge secured loan payments on their home over the unsecured contractual credit commitments they may have.

If you are doing exactly this, making sure your credit cards are paid so you can keep using them, then you need financial advice, immediately.

We cannot stress how soon the financial advice should be sort as your home is at risk if you do to keep up repayments on loans or other forms of debt secured on it.

Which would you prefer to lose if you had to make the choice, your credit rating or your home?

  • If you fail to pay your mortgage you can lose your home!
  • If you fail to pay your credit cards, only your credit will be affected in the short term!

We are not saying that you should ignore your credit card or loan companies you may be borrowing from! You must simply prioritise your secured loans such as a mortgage, over these other unsecured debts.  Then you can come to an arrangement with your unsecured lenders to repay at a rate you can afford without sending yourself further down the line of possible mortgage arrears.

It is not often that we hear that a client has been told to prioritise their mortgage payment over the credit card payment by the credit card companies they owe money to. We cannot change the way they work but we can off the correct personal financial advice to a consumer.

  • When we explain how the priority works for secured credit over unsecured credit, consumers are often pleasantly surprised. It is a principle of law that secured or priority debts do take priority over any unsecured financial commitments a consumer may have.

The most common situation at the moment for homeowners in the UK is that they are struggling to manage their credit card and loan repayments and because of this, balances are compounding against them and growing at an uncontrollable rate. The consumer then starts to miss mortgage payments, be them interest only or repayment as they wish to try and keep the credit card and loan companies happy.

You must accept that if you find yourself struggling with the above problems you need to take the financial advice mentioned above sooner rather than later.

There are a number of personal debt solutions that can help you to control, manage and subsequently clear the debt you may have which should leave you without mortgage arrears and give you some sort of end to the financial difficulties you may be facing.

Find out about Debt Management Online

Find out about an IVA or Individual Voluntary Arrangement in England

Find out about Bankruptcy in England

Find out about Debt Solutions in Scotland

Find out about Debt Consolidation Loans

Find general Debt Help and advice

If left, the personal debt problem will only get further out of control, unless that is, you are lucky enough to win the lottery or get paid for several months work in return for a normal months effort, which, is unfortunately, unlikely to happen!

  • Do not leave it any long to seek professional advice if you have mortgage arrears or other secured loan problems.
  • The longer you leave it to take advice, the less able anyone will be to help you.

Sometimes, we have to tell people that have left it too late that the only help they could get is from the mortgage company who is actually pressuring them. If you do not fall behind with the mortgage, you will not have to make that call, so do not make the mistake of prioritising unsecured credit card and loan repayments over your monthly mortgage payment or repayment.

  • The advice we are offering above relates to interest only and repayment mortgage arrears.

We are not offering mortgage advice in this blog post but advice on dealing with mortgage arrears that are affected and created by other unsecured credit agreements which we would usually be able to help you clear and control.

Personal Debt Test

If you find yourself struggling with the above personal debt problem and feel you would benefit from professional debt consolidation help or advice from a trained debt consultant, please contact our personal debt helpline today in absolute confidence.

Call 0800 018 6868 free today

Lines are open 24 hours / 7 days

Calls are usually free from a UK land line

Calls from mobile may be less expensive if you call 0161 872 3383

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Do you know what other debt consolidation help, advice or solutions are available to clear personal debts in Scotland UK, apart from a Protected Trust Deed?

  • Are you Scottish and wondering how you can clear personal debts without utilising a Trust Deed?
  • Have you taken any trusted and professional debt consolidation help or advice yet?
  • Confused by certain options you are being told are available to clear debts in Scotland?

When we are contacted by Scottish residents, the most important part of the advice we can offer is that debt help, advice and solutions available in Scotland differ to those available throughout the rest of the UK.

Debt Solution Finder

People across the UK are being called daily by companies that claim to have all sorts of magical ways to wipe out personal debt problems for consumers.

free credit report UK from ExperianThere is plenty of free debt advice in Scotland available from the National DebtLine Scotland.

  • The main Scottish debt solutions available are as follows;

Protected Trust Deeds – (Scottish equivalent to the English IVA or Individual Voluntary Arrangement)

A Trust Deed in Scotland will usually take about 3-5 years to complete. You are asked to pay one monthly payment for that period and after such time any remaining debt is usually written off by the creditors.  All interest and charges are stopped during this period and creditors would usually contact the Trustee / Insolvency Practitioner who is managing the case and not you the client directly. This is a voluntary agreement but is formal and legally binding. Trust Deeds in Scotland differ as some are protected and some are not. It all depends on the quality of who is managing the case for you. A Trust Deed in Scotland becomes protected as long as;

  • No more than half of your creditors object to your Trust Deed!
  • No more than one third of creditors in debt value object to your Trust Deed!

Creditors cannot pertition you for Bankruptcy once your Trust Deed is Protected!

A Trust Deed will be recorded on an individuals credit record and it would be expected that you do not apply for further credit whilst the Trust Deed is in place. It may take some time for your credit rating to repair once the Trust Deed is over. If you own a property, you may be expected to release any available equity from that property whilst the Trust Deed is in place to make a greater contribution to the overall repayment the creditors would receive. There is no court hearing or need to appear in court when setting up a Protected Trust Deed in Scotland. Find more information about how Trust Deed Fees work.

Sequestration – (Bankruptcy in Scotland)

This is conducted through the Sheriffs Court, your creditors can either pertition for your Bankruptcy or you can apply directly for voluntary Sequestration / Bankruptcy. During the Sequestration process all of your assets or savings including cars and homes are passed to the Trustee or Insolvency Practitioner as part of the arrangement and remain under Trustee control. They are allowed to be sold to make the contribution back to your creditors larger. If you cannot afford to repay your debts in a reasonable amount of time, you may be expected to pay a monthly amount to your Trustee for up to 3 years. If you cannot afford to make a monthly repayment due to a negative disposable income, you will not repay monthly and the period of Sequestration would usually last for 12 months at which point you would become debt free and debt remaining would be written off by the Sequestration process.

  • You cannot borrow more than £500 whilst in Sequestration.
  • Your employment could be affected so you should check with your employer first.
  • Your credit rating will be affected.
  • If you are self employed you may not be able to continue trading.
  • Members of Parliament, Schools, Councils and company Directors will not be able to continue these practices whilst in Sequestration.
  • Windfalls and inheritance will be taken into account should you be so fortunate whilst Bankrupt in Scotland.

DAS / Debt Arrangement Scheme – (Only available in Scotland)

The Debt Arrangement Scheme is a relatively new personal debt solution for Scottish residents to clear personal debts. It is a Scottish government approved and run Debt Payment Programme.

Debt Arrangement Schemes allow you protection from your creditors from legal action and allows you to repay at a rate that you can afford. All interest and charges on your debts are frozen if the DAS / Debt Arrangement Scheme is approved. A Debt Arrangement Scheme can last for a reasonable amount of time and if you are a Scottish resident and have one debt or more that you are in difficulty with, you may qualify for a Debt Payment Programme. You must be able to contribute an amount monthly that you can afford to repay.

If you fail to pay for 2 months or more, your Debt payment Programme can be ended and you can become liable for all the interest and charges that were previously frozen.

Debt Management Plan – (Also available in England, Northern Ireland and Wales)

A debt management plan is an informal arrangement between you and your creditors to repay what you owe. Not legally binding but conditions do apply and credit ratings can be affected.  Usually offers one monthly payment. The company you chose to conduct your debt management plan can often make the difference to the plan being successful or not. Read further about debt management online.

  • Please remember that you have to be committed to any personal debt solution for it to work and if not, the debt simply will not clear itself!

For UK debt advice and consolidation help regarding personal debt solutions available to clear debts in Scotland, please contact our Lewis Alexander personal debt helpline in confidence.

Call 0800 018 6868 Free today

Lines are open 24 hours / 7 days

Calls are usually FREE from a UK land line

From mobiles it may be less expensive to call 0161 872 3383

Find us on Google+

free credit report UK from ExperianLewis Alexander Financial Management has received an unprecedented level of interest regarding the proposed launch of the company’s new online customer driven debt management plan software.

This interest has made Lewis Alexander more committed to providing the online service as a significant sector of potential and existing clients have continued to express a demand for a more cost effective and controllable method of personal debt management.

  • One of the most frequently asked questions have been “when will I be able to log on and use the software?”

Lewis Alexander remains committed to providing the online service by the end of the 2nd quarter of 2013. In order to achieve this objective the company intends to web enable its existing, purpose designed, debt management software. This unique debt management software was originally created to support Lewis Alexander’s core client offering of personal and service supported debt consolidation solutions. The key aspect of the online debt management software is its ability to maximise efficiency in processing client data, together with the dynamic production and generation of personal financial statements, creditor communications and payment distribution, therefore dramatically reducing administration costs.

  • Many potential users have also asked “how simple will the new online software be to use?”

Lewis Alexander’s intuitive debt management software was originally designed and further developed to be used by trained and experienced personal debt consultants. One of the key challenges in the development of the new online software solution is the provision of knowledge and advice usually provided by a trained debt advisor. It is proposed that this level of guidance and assistance within the new resource is provided via tutorials and content within the knowledgebase aspect of the online software. This aspect of the service is crucial as it will not only enable clients to use the software effectively and efficiently but will also ensure that they are given “best advice” at all times in line with OFT (Office of Fair Trading) guidance and compliance.

Lewis Alexander is working with external strategic partners from within the software industry and is aiming to have a “micro model” of the new online, client driven debt management software available for user testing and OFT compliance consultation during the 1st quarter of 2013.

  • If you are interested in potentially enrolling in one of Lewis Alexander’s future user testing focus groups call 0800 018 6868 to register your details.

The new online client controlled debt management software is not designed to be a “one size fits all personal debt consolidation solution” as many clients may continue to choose conventional personal debt management support and the company remains committed to providing this level of personal service that it has for the last 10 years.

The original development and implementation of Lewis Alexander’s efficient debt management software enabled the company to pioneer “fixed fee” solutions in the debt management industry over 10 years ago and will continue to enable the provision of cost effective traditional, personal and client supported debt management solutions in the future.

Should you require help to manage personal debt problems or simply wish to register your interest for our debt management software testing focus group, please call us today in confidence.

  • Call free using 0800 018 6868
  • Lines are open 24 hours / 7 days a week
  • Calls are usually free from a BT land line
  •  Mobile calls may be less expensive if you dial 0161 872 3383
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