Advice on Debt

On April 20, 2011, in News, by Lewis Alexander

Sleep better with advice on debt, knowing your debts are managed!

Personal debt advice in the UK has become an enormous issue for all kinds of reasons. Unfortunately it has had a stigma attached to it in the past which may stop some people dealing with their debt problems. This has the effect of actually making the situation worse when it would be relatively simple to get under control with the right advice on debt.

Advice on Debt

There are several signs that your personal debts have gotten out of control.

  • Are your monthly outgoings starting to outweigh your monthly income?

  • Are you scared to answer the phone and open your mail?

  • Do you have debt collectors chasing you for money?

There are many possible routes to take when dealing with advice on debt. Every situation is different and a tailored solution needs to be discussed. Any one of the following could be the solution for you to find help with personal debts.

  • IVA (or TRUST DEED in SCOTLAND)
  • DEBT MANAGEMENT PLAN
  • BANKRUPTCY
  • DEBT CONSOLIDATION LOAN

If you are a bit wary of committing to a fixed term financial solution like an IVA or Individual Voluntary Arrangement, then debt management online can help you restructure debts in the short term. A debt management plan constitutes an informal agreement between you and your creditors.

Loans to consolidate your debts– taking out a debt consolidation loan to pay off all your current agreements (loans,credit cards etc) is often the simplest option as it can reduce your monthly repayments.

  • REMEMBER ADVICE on DEBT SHOULD ALWAYS BE FREE
  • Do NOT Pay for advice calling HIGH rate phone lines.

Individual Voluntary Arrangements

With an IVA, all interest and penalty charges are STOPPED! You will be given one affordable monthly repayment to make and this should stop all the creditor phone calls and letters you may currently be receiving.

An IVA will prevent court proceedings and even stop bankruptcy and after what is normally 60 months (5 years). Read about a Trust Deed in Scotland as laws differ there for financial help and assistance.

Bankruptcy is the end of the road as far as debt management or debt help. Once you reach bankruptcy, your finances will be sorted out by the courts. In a nutshell, if you reach the stage where you need to become bankrupt, it will mean that you will get a fresh start and normally your debts will be written off, conditions and restrictions do apply though.

Let one of our trained professional advisors call you today to help give advice on debt and find a solution to your debt problems. Peoples debt problems are rarely unique and we may be able to help you clear debt.

  • Call 0800 018 6868 free from landlines, call charges from mobile phones may vary.
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Debt Help and Advice in Scotland

On November 27, 2009, in News, by Lewis Alexander
  • Do you live in Scotland?
  • Are you in need of Personal Debt Help and Advice?
  • Is the difference bewteen debt assistance in Scotland and England confusing you?

For most people that live in Scotland, the differences between debt solutions that are available in England compared to those in Scotland can be some what confusing to say the least.  If you have previously taken advice from debt agencies and are still struggling to understand the various options available to clear your debts as a Scottish resident, please read this blog post further as we believe this will help you.

  • Trust Deed

Most people are now familiar with the term IVA (Individual Voluntary Arrangement), for those that are not, it is a legal agreement between you and your creditors in England ONLY, and is a form of Insolvency that allows you to pay back an amount of the money you owe within a set or fixed period of time, usually 60 months or 5 years.  The remainder of what you owe that has not been repaid is then written off by your creditors leaving you debt free.

  • The Trust Deed, is very simply the Scottish alternative to the IVA in England.  The difference is that in Scotland, the Trust Deed lasts for 36 months, not 60 months like an IVA in England.

Creditors are not duty bound to agree to Trust Deeds as they do need to make sure that they are obtaining a satisfactory percentage of the total debt to be repaid.  This is not always possible when the clients circumstances are investigated as the client sometimes does not have enough disposable income (the money left over after essential bills and living costs) each month to meet the financial repayments, in this case the client can then consider a debt management plan or Bankruptcy.

  • YOU SHOULD NOT APPLY FOR ANY FURTHER CREDIT ONCE ACCEPTED ONTO A TRUST DEED!

A Trustee will manage your Protected Trust Deed for you and Trust Deeds can only become protected if certain requirements are met by the individual, if the Trust Deed becomes protected, your creditors cannot take legal action against you and the interest or charges on your personal debt will become frozen.

You will NOT be charged to enter a Trust Deed arrangement, your creditors are responsible for paying your Trustee out of the contributions you make whilst the agreement is in place.

  • Bankruptcy in Scotland is sometimes referred to by some as Sequestration

Sequestration involves removing or seizing a persons belongings or assets, to a value of the debt owed with a view to being of financial benefit to the creditor owed the money or in some cases this can be for monies owed to the Scottish state.

Laws in Scotland that appertain to personal debt and finance agreements can vary based on what type of agreement you have signed and with which company or lender.  For an exact definition of different legal agreements, you should without question consider speaking with a Scottish Insolvency Practitioner or solicitor.

The above is a very basic explanation designed to give you a brief outline of the differences between, debt help in Scotland and that to the rest of the UK.  For a more detailed explanation you can contact our personal debt helpline which is open 24 hours a day.

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How does Debt Consolidation work?

On November 27, 2009, in News, by Lewis Alexander
  • How does Debt Consolidation work?
  • What is the best way to get Debt Help?

In our business of managing hundreds of clients finances and helping them with their debt consolidation, we have found that the biggest cause of stress in families is always regarding their personal debt and how best to manage the debt problem that can spiral out of control very easily.

We find that many people are not aware of the debt help that is available for people who genuinely want to reduce their debt and be able to cope with managing their income and expenditure.

There are many financial companies who have an excellent track record in helping people in this situation and these companies are able to ease their clients’ worries very quickly.

Debt consolidation is one method that can be used very effectively to reduce your outgoings and balance it with your in comings, especially with expert help.

  • Many people need educating in what one needs to do in this situation!

Contacting a debt consolidation company will help and educate them as to what decisions need to be made to effectively manage the current situation in the best possible way.  This in itself is a way that a client can receive immediate relief from the worries of not being able to cope financially and the ability to sit down or talk to a consultant over the phone will have long term benefits for the individuals financial future.

Over the many years of managing and clearing clients debts, our experience tells us that once a client contacts a debt management or debt consolidation company, they are put at ease, knowing that that they will not have to deal with a bailiff or collection agent knocking on their door demanding monies that they cannot afford.  The fact that the debt agency is there to help in this situation makes a huge difference.

  • What Is Debt Consolidation?

In the simplest terms, debt consolidation means that you take all of your individual unsecured or secured repayments such as credit cards, overdrafts, loans and catalogues etc and put them all together as one full amount owed. This full amount is the amount that is then arranged into one consolidated loan, offering the benefit of making one lower, affordable and reduced monthly repayment over a longer period initially, if necessary with the effect of reducing ones monthly outgoings.

  • The main purpose of this is to;

1)  Reduce the total amount of debt – this can be achieved effectively when you work closely with one lender who will pay off all your outstanding debt and consolidate it into one monthly repayment.

2)  Create one new payment to a new lender that is far smaller than all the individual payments to various lenders. Debt consolidation companies have much more experience dealing with lenders in this scenario and can also negotiate a much better rate of interest, effectively reducing your overall personal debt.

3)  Allowing you in time to reduce your overall debt if you can make slightly larger payments in due course will have the net effect that you would pay much less in interest over the whole period.

  • One of the benefits that occurs as a result of the above is that you end up with a much better organized financial statement regarding your income and expenditure.

We all find that many bills to pay means you have to be so much better organised and able to meet all the various payments at the due dates or end up paying penalties for late payments, causing you to pay much more in the long run and also affecting your credit rating along the way.

One outgoing for a loan is much easier managed than 10 different payments to various lenders!

  • What are my options when Consolidating my Debt?

1)  If you own your own home and have a reasonable amount of equity in your home you may consider the route of refinancing your existing mortgage to pay off other debts which will reduce your overall interest paid.

2)  If you have a fairly good credit rating you may be able to obtain a personal loan and many people would favor this as the equity in their homes has been drastically reduced in the last few years. You can find out more information about these specialist loans from good debt consolidation companies or debt counselors.

3)  If you have credit cards with large balances then you may opt to transfer all your other debts onto one single card, but you will end up paying higher interest or charges with this method.

4)  Many times you may be able to get help or assistance from family and friends, however, when one wants to keep a certain amount of privacy with financial affairs, most people are swayed against this course of action unless they have very good and open relations with family.  You are also likely to create tensions in family when the last thing you need is further tension, lack of privacy and stress.

5)  Seeking out a professional debt consolidation company – For many people this would be the best option, working closely with a time served and reputable company who have specialists in debt consolidation, debt management and debt reduction will really help you. The advantage is in the fact that they have an in depth knowledge of the areas concerned and also have very good working relationships with banks, credit card companies and general debt collectors and lenders. It is possible in many cases that they are able to negotiate better rates of interest and settlements.

It is important to note here that lately, there has been a surge in new companies operating in this debt arena, many of whom have very little track record and your interests are, shall we say, not their first priority!  It is very important that you do your homework and work with only the best companies that are prepared to look after your interests first, not their own.

Lewis Alexander Financial Management offer a first class personal Debt Management Service, nationwide throughout the UK. We are based in Manchester and we have helped thousands of client’s in our history.  We have in house specialists who concentrate on debt management and loan consolidation and we have been looking after a great number of our clients for many years now.

Call Lewis Alexander on their personal debt helpline using 0800 018 6868, our lines are open 24 hours a day, 7 days a week and your call is free.

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Struggling with debt?

On November 25, 2009, in News, by Lewis Alexander

If you are struggling with debt in the UK, you must obtain personal debt advice as soon as possible.

  • Unable to manage monthly repayments?
  • Are you receiving letters and calls from credit card and loan companies?
  • Have you missed payments on any of your credit agreements?

If you answered YES to any of the above, you need personal debt information that will assist you in clearing debts without further loans.  Struggling with debt in the long term is not the way forward and the sooner you find away to end your debt, the better!

There are many different debt solutions which you can explore to find the one that suits you best, what you do need is the correct advice and this is not always available.  The reason for this is due to most debt companies wanting to take you down the route that is most profitable to them, not YOU!

The most usual ways to clear your debt without another loan are listed below;

Debt Management

IVA in England or Trust Deed in Scotland

Going Bankrupt

You may have already considered some of the above if you are struggling with debts and may not have received the correct advice based on your current situation.

At Lewis Alexander, we specialise in helping people every day who are struggling to clear their personal debts, we do this without the individual having to take on further credit or loan agreements.

We will be able to help you! All you need to do is call our personal debt helpline in confidence and have a brief confidential chat with one of our experts.  This way you are not paying for the advice and you can compare our debt help to other companies you my have spoken with, or are about to speak with.

  • Call free today, what have got to lose apart from ten minutes of your time?
  • You may even find that after our brief chat, your problem is not as bad as you originally thought, which in itself is a massive relief to most people.
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