Monthly Payment Plans FAQ

Debt elimination is, quite simply, getting rid of your debt. People get into debt for any number of reasons. General day to day expenses such as food, travel and heating are increasing and then there are the occasional extra splurges; weddings, a new baby, family holidays, birthdays and Christmas, they all add up. All these factors can plunge you further and further into debt and its not until the end of the month when the fated credit card statement arrives, that the consequences of your spending finally hits home. And what would happen if you got made redundant? Or got fired? Or got divorced. These shocking turn of events could leave you wallowing deep in debt with seemingly no way out.

Most people these days have some sort of loan, whether it be a mortgage, student loan or simply a personal loan towards a car or holiday. Average debt per household in the UK is close to £60,000 and with interest rates often exorbitant, most people can look forward to a lifetime of debt, charging and borrowing more as it becomes available. Matters are hard to ignore by the hundreds of new credit offers in the mail, on TV and online, with the temptation to maximize our debts in order to enjoy life now and forget about tomorrow. We are a society of instant gratification, indeed the UK's buy-now-pay-later culture is firmly well-established.

So what can we do to stop this pattern of spending, lending and spending again? Here are a few tips to give you a grasp on your debt and aim towards eliminating it for good.

Research money saving options
Look for money saving opportunities like low interest rates and credit card offers. Shop around, find the best deal and don't be afraid to negotiate the rates. Often credit card companies will lower your rate on the spot, simply because they don't want to lose your business.

Take action
Develop a debt management strategy and follow it through. List everything you owe and the corresponding interest rates you are paying. Pay the most important debt first. Then pay off the debt that carries the highest interest rate. With a bit of willpower you can start eliminating those debts.

Always pay on time
The worst thing you can do is make late payments. If you let the deadline pass, you'll pay interest on the full credit card balance acquiring more and more debt.

Pay at least three times the minimum due
Credit card companies typically ask that you pay just 2 percent of the outstanding balance. But if you only make minimum payments, you'll never get out of debt. Try pay off as much as you possible can each month.

Cut out luxuries and extra items you can live without
By cutting back on unnecessary expense's, you can then use that extra money to lower your debt. You could also try shopping around to reduce bills or think about selling non-essential items that you own.

Be disciplined
It may sound obvious but don't borrow any more money or take on any more debts until you have repaid what you already owe.

Record your spending
This is your key to eliminating debt. Debt occurs because you spent money you didn't have. You'll be surprised at what all the little extras add up to. Eliminate the non essentials and you'll find yourself eliminating your debt.

Get help
This sounds simple but where do you go? By speaking with a professional certified debt consolidation company you start on the path to eliminating your debt today. If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

 

Britain is heading for the worst economic slump since the early 90s, global experts have warned. There has been a sharp reduction in the availability of finance from banks and other financial institutions and a sudden reduction in the general availability of debt loans. Personal bankruptcies are at record levels in the UK and the dole queue is growing at more than 1000 a day. This is all known as the credit crunch and the UK is in the thick of it. Whilst people are falling behind with their mortgage repayments and juggling high interest debt loans, many homeowners could have to face the fact that they may lose their home. Repossession levels are on the up in the face of the economic downturn, with over 11,000 people losing their homes in the third quarter of the year, 12% more than in the previous three months.

The Government has recently announced plans for homeowners who are in financial difficulties to be given a two-year mortgage holiday which will be underwritten by the taxpayer. These new proposals, which will come into force next year, could help the hundreds of thousands of homeowners who are expected to fall into arrears over the coming months in the face of redundancy or reduction in working hours and a intensifying recession. Under the new Homeowner Mortgage Support Scheme, people can defer their mortgage interest payments for up to two years. The deferred payments will be added to their outstanding mortgage debt, which the borrower will pay off when when their financial circumstances have improved. The scheme will be subject to eligibility criteria and to qualify borrower's will have to satisfy the following demands:

• Have suffered a loss of income from employment or self-employment of a scale which now makes full mortgage payments difficult, but which is not expected to be a permanent loss of income.

• Have been in dialogue with their lender, including over the use of existing forbearance policies and have been making some level of regular payment.

• Have taken out a mortgage of up to £400k.

• Have savings below £16,000.

• Apply for assistance as owner-occupier – the programme will not apply to people with second homes or buy-to-let properties.

• Not be in receipt of SMI or mortgage rescue assistance.

• Have been assessed as being able to pay a certain monthly amount on an ongoing basis.

• Have received financial advice from a party other than their lender to determine their eligibility for the scheme, including testing the long-term sustainability of their financial position, and their ability to resume full payments once their income increases.

• Have fallen into arrears for a number of months during which the lender has exercised forbearance.

Announcing the move Prime Minister Gordon Brown commented: “Hard-working households that experience a redundancy or significant loss of income as a result of the downturn will be able to defer a proportion of their [mortgage] interest payments for up to two years while they get their family finances back on track.”

This new scheme which was announced on the 3^rd December, builds on other Government initiatives to help prevent families losing their homes, such as the Mortgage Rescue Scheme under which people can sell some or all of their home to a social landlord and then rent it back.

If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

 

A credit card is a plastic payment card with a magnetic strip or an embedded microchip which can be used by the holder to obtain a line of credit buy goods or services. Credit cards offer card members the ability to pay back the balance over time by applying an interest rates. Card members are not required to repay the full amount each month. Instead the balance accrues interest with only a minimum payment due. The UK has fast become a nation that is reliant on using credit cards to pay for items. Indeed credit cards enable us to make quick purchases without having to pay up front and spread the repayments over time, fuelling the get-rich-quick, live-now-pay-later zeitgeist that has become so popular in the UK.

Credit card spend is increasing because consumers are depending on their credit cards to pay off their debts. The cost of living has soared this year with energy bills, fuel prices, mortgages, council tax, rail/bus fares and doctors prescriptions increasing significantly. These increases have easily outstripped pay rises and left many families struggling. Recent reports state that over 50 per cent of people are having to use their savings on food and utility bills. But spending your hard earned savings now means you'll be even less likely to be able to afford escalating costs in the future.

Credit card debt is easy to get into and sometimes very difficult to free yourself out of. Credit cards tend to come with higher interest rates than most other forms of credit. According to The Office of National Statistics, total consumer credit lending to individuals in the UK at the end of September 2008 was £238bn. This has increased 6.0% in the last 12 months. Its no wonder that credit debt can cause stress, depression, poor health and tear apart families. Credit card debt is extremely common in England, with two out of every three British people owning a credit card. According to the British Bankers Association we have as a society got £65 billion on plastic and credit card lending is still on the up.

Credit cards are getting costlier as recently credit card issuing banks have begun increasing the minimum amounts. This increase is different from bank to bank but some credit card holders could see their minimum payments double. A study of 240 credit cards showed that the cost of borrowing on cards has dramatically gone up, despite the recent cut of Bank of England interest rates to just 3 per cent.

Card	Old rate (%)	New rate (%)	Rate rise (%)
Egg Money MasterCard	7.90	16.90	9
Abbey Credit Card MasterCard/Visa	22.90	27.90	5
Nationwide BS Classic Visa	22.90	27.90	5
Bank of Ireland (UK) Moneyback MasterCard	20.94	24.94	4
Virgin Money MasterCard	24.90	27.90	3

Source: Moneyfacts, 12/11/08

The best way to reduce your credit debt is to always pay off your balance in one go, but in today's credit crunch climate this can be more than difficult. Try at least paying off more than the minimum payment, if you cannot pay whole whole amount, as this can reduce interest and repayment periods considerably. By using the services of a reputable and professional debt management company, you can start to manage your credit card debts. If you are having problems with credit and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

Many thousands of people in the UK find themselves struggling with debt every year. The total UK personal debt at the end of August 2008 stood at £1,448bn. The average household debt, including mortgages, is £59,350 and one person every 5 minutes is declared bankrupt or insolvent. Chilling statistics but how have we got here? Understanding money no longer means understanding the currency itself, since actual physical money is now less than one tenth of all currency. 'Money' is now credit cards, travellers' cheques, shares and electronic funds transfers, all of which require proficient knowledge of todays complex financial world.

Debt is a scary place to be. Everyday our mailboxes are flooded with advertisements, catalogues, and "pre-approved" credit card offers hoping to deplete our savings and draw us deeper into debt. It can be emotionally as well as financially threatening, putting a strain on families and relationships which in turn can potentially increase the chain of financial difficulties. Permanently resolving your debt situation involves three things: gaining an awareness of the different types of debt, understanding the psychology and circumstances that led to your current situation, and devising an effective debt reduction, savings, and wealth acquisition plan.

Eleven steps to reducing your debt:

• Don't Ignore It

  The worst thing you can do if you have debts is to bury your head in the sand and pretend they don't exist. Admit to yourself that you have commitments beyond your control and face up to your problems. Throwing away your bank statements without opening them and ignoring letters from companies you owe money to, will only get you further into trouble.

• Budget

  The best way to start reducing debt is to set up a budget to know exactly where your money is going. You'll need to add up your income and subtract your expenses, then set up a plan. Your budget will dictate how much you can devote to paying down your balances each month.

• Take Control

  Don't be tempted to borrow any more, even off family and friends. If possible get a part time or evening job.

  Spring clean your home and sell unwanted clothes, CDs, books, electrical goods and pretty much anything you don't want at a car boot sale, garage sale or online auction website such as ebay.

• Switch Your Utility Suppliers

  You could save a substantial amount by finding your cheapest utility companies. Moving to a new utility supplier is not risky, most suppliers are large, trusted companies and all of them are regulated to ensure standards of service. Often you can get further concessions if you obtain your gas and electricity from the same supplier - a facility known as "dual fuel".

• Switch Your Mortgage

  The mortgage is probably your biggest expense each month, so it's important to ensure you have the best possible deal. Just because you have got into financial difficulties doesn't mean that you aren't eligible to switch to a cheaper mortgage to reduce your monthly outgoings. If you have equity in your home you could also re–mortgage to increase your borrowing and use the extra money to pay off your credit cards, store cards or overdraft.

• Cut Up Your Store Cards

  Store cards are one of the most expensive ways to borrow money and are best avoided if you don't repay your balance in full each month. Rates on some of these cards are nearly 30% APR. That means that a £100 pair of trousers can cost you £130 after a year if you haven't paid the amount off. Cut them up, shop around different stores and pay cash.

• Handle Your Bills

  Assess your ability to pay bills as you develop your get-out-of-debt plan. Pay all your utility bills by direct debit. It's much easier to manage as you won't have to worry about sending cheques on time and many providers offer discounts for direct debit payments saving you money. You can get further discounts by opting for paperless billing. Save yourself a pretty penny by reviewing your car insurance, phone and broadband suppliers.

• Manage Your Credit Cards

  Switch to a cheaper credit card and you could take advantage of one of the many 0% interest balance transfer offers to provide a breathing space. Cut up any spare credit cards to avoid temptation and write or call the companies to cancel your account

• Shop Around The Banks

  The rise in the number of internet banks means there is far more choice, so it makes sense to switch and take advantage of offers such as fee-free banking and lower overdraft rates. If you have savings, shop around for a high interest account or open an ISA.

• Watch Your Daily Spending

  Cutting back on non–essentials can make a instant difference. Planning meals, using a shopping list and doing a weekly food shop will save you a fortune. Buy supermarket own brand products, take a packed lunch to work and eat at home whenever possible. Avoid buying take away coffees, fast food, magazines, CD's and sweets and you'll be amazed at how much you can save.

• Visit A Debt Management Company

  If you can't afford to make repayments for all your debts, don't worry! – It's not the end of the world. Get in touch with a reputable debt management agency, explain your situation and let them handle all the stress by setting you up with a personalised debt management plan. Turning all your debts into one single monthly payment making your finances much easier to manage. A debt management company can also speak to your creditors in order to negotiate reduced payments and request that the interest and charges are stopped or reduced. This means your monthly payments go towards clearing your actual debt.

If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

A debt management plan is a structured repayment plan set up by a designated third party, assisting a debtor with repayment of his or her debt. The aim of debt management is to help clear the debts at a reduced level over a fixed period of time to help the debtor make a fresh start with their finances.

Deciding to use the services of a debt management company may be hard. It can be difficult for people to admit they need help and many people wait for their financial life to spiral completely out of control before seeking assistance. Seeking the help of a debt management company early can help you get back on your feet quickly and assist you towards a debt free future.

A debt management company can help the average consumer take control of their debt problems quickly. A skilled personal debt assessor can reduce or eliminate current levels of debt whilst helping the consumer to understand the factors that led to the debt and how to avoid these factors in the years to come. A good debt counsellor can help a consumer create a realistic budget plan to carry them forward in the future once the current debt has been eliminated. Making a monthly budget and keeping to it may well be the most essential financial decision anyone can make, but few people take the time to make a budget. By teaching this important skill, a good debt management company provides their clients with expertise to remain debt free.

How does debt management work? Firstly your debt advisor will offer advice on ways that you could save money by looking at the way you budget. Your debt adviser will then help you to carry out an assessment of your financial situation and debts by asking you a series of questions. By asking these questions they get a more accurate picture of your finances. It is essential that you are truly honest when they are going through your finances with you to enable the debt advisor to give you the specific help you need. This information is used to calculate how much you can comfortably afford to pay each month out of your surplus income.

Once this amount has been agreed with you, your creditors will then be approached and asked to cease all charges and negotiate a different repayment schedule with them, which will be easier to manage every month. In most cases creditors are happy to agree to the plans, because they know from experience, that such plans are realistic and sustainable.

You then make a single monthly payment, all of which is distributed to your creditors on your behalf. It is important that the payment is made into your debt management plan every month. Throughout the duration of your plan, you will be able to speak with an experienced debt advisor whom you should contact if you experience any problems whilst the arrangement is in place.

Your debt management plan will be reviewed at regular intervals to ensure that it still meets your circumstances. If your financial situation changes, the debt management company have the flexibility to be able to renegotiate payments on your behalf.

When it comes to reducing and eliminating current debt, a debt management firm can be a very effective way to reduce debt and all eliminate the stresses it causes. While creditors are often reluctant to work directly with consumers to renegotiate the terms of their debt, they are often very willing to work with a legitimate debt management company who know the lingo of the credit card company or the bank. Speaking the same language, they will know how to negotiate the best possible terms on the repayment of a consumer’s debt. Whenever you find yourself in debt over your head, chances are a debt management service can be a big help.

If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

Bankruptcy is a legal proceeding wherein one is granted relief from debts due to the inability to pay. Bankruptcy usually lasts for a year and can be a way of clearing debts you can't pay. Bankruptcy is a serious matter - you'll have to give up possessions of value, the interest in your home and your excess income to pay off your creditors. At the end of the bankruptcy period, most debts are cancelled. The bankruptcy proceedings free you from overwhelming debts so you can make a fresh start, subject to some restrictions. Anyone can go bankrupt, including individual members of a partnership. Bankruptcy is the final extreme of debt. If you have no way of making repayments with what income you receive then declaring bankruptcy may be your only option. It should only be done as a last resort as there are consequences that come with it.

A court can declare you bankrupt by issuing a bankruptcy order or you can file your own bankruptcy petition. A form (a debtor's petition) can be downloaded from the Insolvency Service website or obtained from county courts and when completed should be taken to your nearest county court with bankruptcy jurisdiction. You then will attend a court day and a bankruptcy order will be filed against you. Bankruptcy is dealt with in a closed court. Often you are with a bankruptcy clerk, not a judge and normally there is only you and the bankruptcy clerk in the room. An official receiver is a civil servant and also an officer of the court. He is responsible for administering bankruptcies and will act as a trustee of your estate. Once you have been declared bankrupt, you will need to have an interview with your official receiver. During this initial meeting you will discuss your reasons for declaring yourself bankrupt. Following the making of a bankruptcy order, the official receiver will give notice of it to local authorities, utility suppliers, courts, bailiffs, National Savings and Investments, the Land Registry and any other relevant professional bodies. They will also make enquiries into your bank account during this time to establish how much money you have and taking into account what is needed for everyday living expenses. You may be asked to sign an 'income payments agreement' to pay fixed monthly instalments from your income. When you are made bankrupt whilst working, you will notice that your tax code will change to a “NT” code. As a result of this you will be paid your gross pay and not your net pay minus tax.

Under new bankruptcy laws introduced on 1st April 2004 the statutory period for a bankruptcy was reduced from 3 years to 12 months. During the 12 months you are subject to the restrictions of the bankruptcy. Once you have been made bankrupt all assets belonging to you come under the control of the trustee, who can sell your assets to pay your creditors. If you own a home either solely or jointly it may have to be sold to pay off part of your debt. If the property is a family home then the Official Receiver will allow the proceedings to be halted whilst other housing arrangements are made. At the end of the twelve-month period, the property will almost certainly have to be put up for sale, enforced by a Court order if necessary. If you are bankrupt you may not be involved directly or indirectly in promoting, forming or managing a company without the Court’s permission, obtain credit of £250 or more without disclosing your bankruptcy or even hold certain public offices. Your bankruptcy will be registered with credit reference agencies and remain on your file for a minimum of six years. You may open a new bank or building society account but should disclose the fact that you are bankrupt. The bank or building society may then impose conditions and limitations, and overdraft facilities or chequebooks must not be obtained,

Bankruptcy is the final extreme of debt. If you have no way of making repayments with what income you receive, then declaring bankruptcy may be your only option. It should only be done as a last resort. If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk

Debt consolidation is a direct process where you consolidate your existing debts into one manageable monthly repayment. A debt consolidation loan would enable you to have just the one repayment to worry about as opposed to multiple payments. With debt consolidation you are still paying interest on your loans, but the aim is to reduce these costs by consolidating everything into one loan and therefore lowering your monthly repayments. Debt consolidation can also make your life a lot easier. The more debts you have, the harder it is to keep track of them. Making payments late or missing them altogether can affect your credit rating and lead to charges, higher interest rates, or even legal problems.

Debt consolidation programs are essentially debt repayment programs. You can consolidate a range of debts from major credit cards, mortgage arrears, store cards and personal loans. You choose the accounts you want to enter into the program when you apply. A professional debt consolidation company will evaluate your finances and debt and help you set up a executable debt consolidation plan, freeing up your time, energy and cash flow. Feasible debt consolidation schemes also offer the chance of long term financial stability.

Depending on your circumstances you can take out a secured or unsecured loan. A secured loan enables you to borrow money from lenders by using your property as security. This means that the lender is minimising the risk of losing any money and so can offer a secured loan at a lower APR. A secured loan is also easier to obtain as an unfavourable credit history such as arrears or CCJs can be largely discounted. An unsecured loan is a loan given by a financial institute that does not require you to put up any collateral. You will need to have a good credit rating in order to be eligible for an affordable unsecured loan and the lending company may require a co-signer on the loan to decrease the risk of the loan not being paid back.

Debt consolidation is certainly not daunting and can help out many who find themselves in severe financial hardships. Debt consolidation presents many benefits such as consolidating all your existing debt problems into a single manageable monthly payment and eliminating potential interest and late fees which may have arose from existing debts. If you're seeking debt consolidation as an answer, remember that you can always negotiate the terms of the consolidation.

If you are having problems with debt and need advice, contact Express Debt Solutions, specialists in debt management. Express Debt Solutions is a part of Norton Financial Services Limited, one of the largest and most established finance companies in the UK. Express Debt Solutions are experts in debt management services. They offer a complete service for debt management and debt advice to tackle your debt problems from start to end. Express Debt Solutions are IVA specialists and will provide you with the correct advice to help you reduce your debt and expense. For more information call Express Debt Solutions on 0800 408 0026 or visit the Express Debt Solutions website at www.expressdebtsolutions.co.uk