Debt Consolidation Advice, Help and News from Debt Advisers Direct

Bad news for homebuilders and homeowners

Tue, 15 Jul 2008 12:40:10 GMT

The UK’s economic problems aren’t limited to ‘just’ the credit crunch or ‘just’ the fall in house prices. Unfortunately, bad news often leads to more bad news: today, the credit crunch means many people can’t get a mortgage, which further depresses demand for – and prices of – houses, which means less money for homeowners, homebuilders and the whole economy.

What is inflation?

Thu, 3 Jul 2008 16:11:23 GMT

Inflation is a measure of the average rise in prices of goods and services over time. In the UK, it is measured once a month by the Office of National Statistics (ONS), who compile a ‘basket’ of approximately 650 goods and services that represent the average buying habits of the public, and calculate the average rise in prices based on this.

There are two main measures of inflation that take different factors into account: the Consumer Price Index (CPI), which the Government use officially, and the wider-ranging Retail Price Index (RPI).

Surviving a “squeeze on real take-home pay”

Wed, 25 Jun 2008 17:20:17 GMT

In millions of UK households, every penny is already accounted for: from food and petrol to utility bills and debt repayments, it’s as good as spent before it’s even earned.

So when Mervyn King, Governor of the Bank of England, tells us we’re facing a “squeeze on real take-home pay” – and we hear that the cost of gas and electricity could rise by up to 40 per cent this winter – finding a way to reduce monthly costs is absolutely vital.

House price histories

Fri, 20 Jun 2008 15:49:32 GMT

What’s happening with house prices? Wherever we look, we find different experts making different predictions. Even more confusing, those experts change their minds as the housing market changes – if you find a company predicting a 5% fall in prices in 2008, there’s a fair chance that back in December they were talking about a year of ‘flat’ prices.

Still more confusing, it seems there’s no definite agreement on where we stand today!

Repossession proceedings - and how to deal with them (part 2 of 2)

Fri, 13 Jun 2008 15:33:8 GMT

Note: This is the second part of a two-part blog. If you’ve not read the first half, we’d recommend you start by clicking here. [link to Blog 38]

Suspended Possession Order
As the name says, this is a Possession Order which the Court has granted – but suspended. In other words, it won’t be enforced unless you fail to stick to the repayment terms laid down in the Order.

Repossession proceedings - and how to deal with them (part 1 of 2)

Fri, 13 Jun 2008 15:29:46 GMT

If you can’t keep up with your mortgage payments and your lender doesn’t think you’ll be able to sort out your finances in a reasonable timeframe, they may suggest you sell your property. If you don’t agree, they may feel they have to start repossession proceedings – starting with a default notice...

Improve your home, increase your equity

Mon, 2 Jun 2008 16:22:56 GMT

If you’re a homeowner and you owe less on your house than it’s worth, you have what is known as ‘equity’. A simple equation:

equity equals value of home minus amount you owe in mortgages / secured loans

Mortgage arrears – and how to deal with them

Mon, 2 Jun 2008 16:13:21 GMT

When it comes to mortgages, there’s a big difference between mortgage debt and mortgage arrears.

Mortgage Debt: Anyone with a mortgage owes money to the lender. That’s how mortgages work: you borrow money to buy the property, then repay it over (often) 20-30 years. As long as you can afford the repayments, this isn’t a problem. It’s very similar to paying rent – except one day, there’ll be nothing more to pay…

`Early repayment charge` – what is it?

Fri, 23 May 2008 17:40:6 GMT

If you’re thinking about repaying a loan early, it’s important to understand how an ‘early repayment charge’ works.

When you borrow money, the lender anticipates earning interest over a fixed period of time. Many lenders will demand an early repayment charge (or ‘redemption penalty’) if you pay a loan back early, because they won’t be getting as much money back in interest as they originally anticipated.

Budgeting - a solution to your debts?

Fri, 16 May 2008 14:55:35 GMT

If you’re looking for a solution to your debt problems, the most important thing is to find the right solution. Some debt solutions are suitable for big debts; others for small debts. (And ‘big’ and ‘small’ mean different things for different people, depending on their overall financial situation.)

It’s always worth talking to a debt adviser about your finances – but if your debts aren’t too serious, the best debt solution may simply be learning to budget more effectively. You might be surprised how quickly you could solve your debt problems if you really put your mind to it.

Debt advice: £10 million of good news for homeowners

Fri, 16 May 2008 14:53:57 GMT

On 9 May, Alistair Darling (Chancellor of the Exchequer) and Caroline Flint (Housing Minister) announced that the Government would provide £10 million of funding to improve the financial support and debt advice that’s available to homeowners having trouble paying their mortgages.

The funding will provide people who might lose their home with ‘expanded access’ to free legal representation in the county courts. It will also pay for specialist debt advice training for staff in charity and local authority organisations, and a new comprehensive debt advice service from the National Homelessness Advice Service.

IVAs and bankruptcies Jan - Mar 2008

Fri, 9 May 2008 15:16:55 GMT

The latest figures from the Insolvency Service show a slight rise in the number of individual insolvencies (bankruptcies and IVAs (Individual Voluntary Arrangements)) recorded in England and Wales during the first three months of 2008.

To get the most from figures like these, it’s always helpful to look at how they compare with the same time period last year, as well as with the three-month period that’s just passed.

Consolidating your debts in a credit crunch

Fri, 25 Apr 2008 15:5:26 GMT

These days, with the average adult carrying almost £5,000 of unsecured debt, more people than ever are looking for the solution to their debt problems, whether that means debt consolidation, debt management or insolvency (Trust Deeds, IVAs (Individual Voluntary Arrangements) or bankruptcy).

What information does a Credit Reference Agency hold?

Fri, 18 Apr 2008 10:21:39 GMT

If you’re about to apply for credit – or if you’ve been turned down – you might have heard about the Credit Reference Agencies: the main ones being Experian, Equifax and Callcredit.

What is a Credit Reference Agency?

Fri, 11 Apr 2008 10:38:29 GMT

Credit Reference Agencies collect information about the way people handle their finances. They use this to compile your credit report, which you can think of as your financial ‘track record’.

There are three Credit Reference Agencies: Experian, Equifax and Callcredit.

How to: get approved for credit

Fri, 4 Apr 2008 10:17:59 GMT

When people talk about ‘the credit crunch’, they mean that getting approved for credit isn’t easy right now.

In a credit crunch, lenders are very careful about lending money – partly because all the other lenders are watching their lending very carefully, so they’re not lending to each other very much.

IVA: What happens at the creditors meeting?

Fri, 28 Mar 2008 10:25:13 GMT

Before an IVA (Individual Voluntary Arrangement) can ‘start’, it must be accepted at a creditors meeting. A brief explanation:

Before the meeting
Once the Insolvency Practitioner (IP) has drawn up the IVA proposal and the individual is happy with it, the IP will get in touch with the creditors to tell them when the meeting will take place. They must be given at least 17 days’ notice.

Variation of an IVA

Thu, 20 Mar 2008 10:36:13 GMT

Five years is a long time. When someone signs up to an IVA (Individual Voluntary Arrangement), they can’t know what the future holds, and creditors understand this. So although anyone in an IVA is required to follow the rules laid down in the agreement, those rules aren’t set in stone.

Before the IP writes the original IVA proposal, they always take a good look at any changes that might happen the over the next five years. But life is full of surprises – and sometimes, something happens that no-one expected. If it’s a big change, the person might need to ask for a ‘variation’ of their IVA: a legal process that’s used to change the existing arrangement.

A Brief History of the IVA

Fri, 14 Mar 2008 9:54:37 GMT

These days, most people in severe debt know they can – if necessary – look into insolvency: declaring themselves legally unable to pay off their unsecured debts, paying what they can and making a fresh start, free of debt.

Voluntary bankruptcy has been an option ever since 1883, but IVAs (Individual Voluntary Arrangements) are much newer.

Talking to non-priority creditors - Ten Golden Rules

Mon, 10 Mar 2008 9:58:11 GMT

If you’re in debt and you can’t make all your monthly payments, it’s absolutely vital to approach your debts head-on – figure out exactly where you stand, and keep your creditors informed.

First of all, this can stop your debts getting any worse. It also shows your creditors you’re serious about dealing with your debts, and that might make them more willing to give you some leeway, whether that means accepting lower payments or holding off on legal action.