Turn Debt Around

A recent report from the comparison site, confused.com has warned that using social media websites e.g. Facebook and Twitter could see people driven into debt due to burglary or increased home insurance premiums.

This report comes on the back of news that in the US state of New Hampshire, 50 homes were burgled after home owners made it public they were not at home through location services on the social media sites.  The burglary ring responsible stole $100,000 worth of goods from the properties.

If this trend continues in the UK, confused.com go on to say that insurance premiums could be hiked up.  This could lead to many people not bothering with home insurance which may save them money in the short term but could leave homeowners needing debt solutions should something happen to their home.

In addition, with the increased number of employers using social networks to 'suss out' prospective employees, social network users should be aware that what they post on their profiles could come back to haunt them in the future and could prevent them from being hired from some companies.

The number of homes repossessed by mortgage lenders fell again in the second quarter of the year.

According to the Council of Mortgage Lenders (CML), 9,400 properties were seized in April, May and June, 400 fewer than the first quarter of the year.

The number of mortgages in arrears also fell.  However, according to the CML's director general, borrowers are not out of the woods yet due to the prospect of higher interest rates, a possible rise in unemployment and reduced government support for mortgages.

If you are in arrears with your mortgage and are struggling with debts, we may have a debt solution for you.

If asked to choose a business that would boom during a recession, you would think it would be bailiffs (those employed to collect debt on behalf of a creditor).  But surprisingly, Britain's official debt collectors have seen their businesses squeezed by the downturn.

The bailiff trade body, the Enforcement Services Association, said the amount of debt referred for collection by its members this year was ten per cent lower than last year.

As the issue of personal debt in Britain is now headline news, rather than a taboo subject, it is thought that people struggling with their finances have become more likely to seek debt help and debt advice, rather than adopt the 'head in the sand' approach and fall into a debt spiral.

Read the full article.

Did you know that?

• The average person who comes to us for debt help will owe money to 7 different creditors which predominantly involves credit cards, loans, store cards, hire purchase and an overdraft.
• It takes between 2 and 10 years of people accuring debt, moving their money between credit cards and ignoring telephone calls and letters from creditors before deciding to take steps to regain financial control via a debt solution.

Interestingly, despite the length of time taken to accrue the debt, when someone decides to seek help, they prefer local, friendly companies and make a decision to get debt advice in less than 2 days.

Our customers have said that simply speaking to someone about their debt problem has a positive impact on their well-being and at Invocas Financial, we are frequently told it's "like having a weight being lifted" by just telling someone - it's the "a problem shared is a problem halved" effect.

If you have a debt problem and want to speak to someone, contact us today.

Debt advice....Bankruptcy....Insolvency....IVAs....you may have heard these words in relation to debt but do you know what they really mean?  Would you know what debt solution is right for you and your financial circumstances?

If you're in financial difficulty and need to speak to us, you may want to familiarise yourself with the options that we may outline to you.

Bankruptcy

Bankruptcy is probably the most well known debt solution but it is by no means the only one.  Bankruptcy is usually a last resort debt solution because of its severity.  You will be bankrupt for 1 year only but the impact on your credit file can last for a minimum of 6 years plus your home and other assets are at risk of being sold so that contributions can be made to your creditors.

Sequestration

Sequestration is the Scottish equivalent to bankruptcy.  Although broadly similar, there are some differences in the process they follow.  As with bankruptcy, sequestration should only be considered as a last resort when all other debt solutions have been ruled out.

IVA (Individual Voluntary Arrangement)

An IVA involves paying a proportion of your debts over a number of years as arranged by an Insolvency Practitioner who negotiates the agreement between you and your creditors.

Protected Trust Deed

Protected Trust Deeds are only available in Scotland.  Very similar to an IVA in England & Wales, it involves surrendering certain assets to a Trustee and making a regular contribution from your income.  The Trustee arranges a legally binding agreement between you and your creditors which must be adhered to during the time period (usually 3 years).

Debt Relief Order

Available if you have very few assets and debts of less than £15,000, a Debt Relief Order will allow you to write off your debts without having to resort to full bankruptcy.

LILA

LILA is the equivalent in Scotland to a Debt Relief Order.  It is for people who have low income and low assets (LILA).

Those are a few of the debt solutions available.  Your ideal debt solution will depend on the amount of debt you have, the assets you own, your income and your individual circumstances.  The important thing to remember is that help is out there if you need it.

Don't be afraid to ask for help, you're not alone.

In these difficult economic times, reports continue to surface of record numbers of people entering bankruptcy or the Scottish bankruptcy equivalent, sequestration.  According to R3, the Association of Business Recovery Professionals, personal insolvencies for 2009 stood at 134,142.

Many leading financial experts suggest that we are a long way off from a rosier economic outlook.  The future of employment in the UK is also giving many cause for concern as redundancies continue in many sectors.

To deal with this bleak outlook, those affected hardest by the recent recession are arming themselves with knowledge about the range of debt solutions available to get them back on the road to financial freedom.

We've compiled a brief guide to the various solutions but for more information, click on the heading links.

Bankruptcy

Being bankrupt lasts for one year only and is one way of dealing with extreme debt problems.  After a year you will be debt free but the information remains on your credit file for a minimum of 6 years.  You are also in danger of losing your home and other assets which are sold off and the proceeds shared among your creditors.

Sequestration

Sequestration is the Scottish law equivalent of bankruptcy.  Although similar, there are some differences between the two processes and as with bankruptcy, sequestration should only be considered as a last resort debt solution.

IVA (Individual Voluntary Arrangement)

There are benefits of an IVA over bankruptcy, including less chance of losing your home and less social stigma.  An insolvency practitioner will negotiate a deal between you and your creditors and it may involve interest on your debt being reduced or frozen.

Debt Relief Order

A Debt Relief Order (DRO) is available in England, Wales & Northern Ireland and allows consumers with debts of less than £15,000 and few assets to write them off without having to resort to full bankruptcy.

LILA

Similar to a Debt Relief Order, LILA (low income, low assets) is the equivalent in Scotland.  It is designed to enable individuals with a certain level of income and few assets, who are unable to repay debt within a sensible timescale, to clear their outstanding arrears.

Trust Deed

A Trust Deed in Scotland is similar to an IVA in England & Wales.  The Trustee arranges a legally binding agreement with you and your creditors based on your assets and income and pays them a proportion of the amount you owe them.  At the end of the Trust Deed time period (usually 3 years), you will be debt free.

These are a few of the debt solutions available.  If you are experiencing financial difficulty, we can help you.  With the ever increasing statistics of the number of people taking on a debt solution, it is important for you to know that you are definitely not alone.

According to a recent report from Credit Action, every adult in the UK now owes an average of £30,228 including their mortgage - that's 126% of average earnings.

The impact of these debts can go far beyond just affecting spending power and wealth, with relationships and health also being jeopardised.  And it's not just one group of society that's feeling the effect; the recent recession has brought these problems to a wider section of the population.

Statistics suggest that more couples have been looking to professional counselling to ease relationship problems caused by financial worries.  According to The Telegraph, there was a 59% increase in enquiries received by the relationship charity Relate's advice helpline in 2008 compared with 2007, including twice as many calls related to money arguments.  These figures may well have increased in 2009/10 as the recession continued.

It has also been reported that the economic downturn can have an effect on health and can increase the risk of a stroke. 

Earlier this year, a leading psychologist reported that the risk of suffering real mental and physical health problems, including the likelihood of a stroke, is higher during a recession.

If you are experiencing debt problems, seeking professional debt advice is recommended.  There are a number of debt solutions designed with you in mind that will offer real help to turn your debt around and take the strain out of your financially-induced relationship and health worries.