Debt Management is a simple process which you can use to reduce and clear all your outstanding debts without the need to obtain any further credit than what you already have. If you choose to use a debt management company to assist you in this process, it will deal directly with your creditors and it will negotiate with your creditors on your behalf. It will seek the agreement of your creditors to drop all charges on your loan accounts and to freeze all interest. There are a number of benefits for you the debtor and for your creditors arising from your entering into and adhering to the terms of a debt management plan, commonly abbreviated to a DMP. Continue reading
Debt Management
Articles discussing everything to do with Debt Management. If you are struggling financially and would like information on a Debt Management Plan or DMP, please get in touch.
Downsides of Debt Consolidation
You will find several things going for combining your financial obligations into just one consolidation loan. Perhaps even the concept ‘consolidation’ is comforting for most people. It invokes the concept of reducing many small plus some not so small issues and amalgamating all of them into a single controlled issue. As an alternative to having a numerous lenders to cope with, the borrower will have only one creditor to control and merely just one particular monthly payment to make rather than being forced to make many repayments to a variety of creditors for differing amounts. Because of this the borrower expects that coping with money affairs gets to be simplified. One other main hope is that the debtor’s credit standing is going to get better substantially as soon as all personal debts in particular credit card obligations are lumped into the loan consolidation. Each and every one of the previous credit card accounts gets paid permanently. To crown it all, the regular monthly repayment on the debt consolidation loan will with luck , be significantly less than the full amount of the monthly payments on all of the old debts – credit cards, overdrafts and personal loans. Continue reading
Insolvency | Dodgy Transactions
In the lead up to any liquidation process, it is important that the borrower makes sure that he behaves truthfully, honorably and fairly in his or her business with all other individuals who might be impacted by the process. All actions relating to lenders or any others (not being creditors) which will detrimentally affect the welfare of creditors are of particular concern, regardless whether creditors happen to be party to the financial transactions are not. Insolvency processes include Bankruptcy, Individual Voluntary Arrangements, Company Voluntary Arrangements, Liquidations and the like. Continue reading
Debt Relief from a Debt Management Plan
Debt Management Plans (DMPs) are much in news reports currently. A few unfavourable issues with the sector made the biggest headlines. Like any enterprise a handful of bad apples can give the barrel a bad name. In Britain the Office of Fair Trading (OFT) has recently taken actions to handle the bad apples. Essentially the most significant offences it has identified took place in the areas of marketing and charging behaviour. In September 2010 it issued a warning to 129 debt management companies and followed that up with high profile enforcement actions against the worst offenders. The OFT plans to publish revised debt management direction in June 2011. It is not evident now whether or not the government plans to introduce any laws to control DMPs. Still the Ministry of Justice has circulated a consultation document relating to the way forward for DMPs. Three options for regulation are being offered. They are to marginally enhance regulation by the OFT, to introduce industry self regulation with voluntary codes of practice and/or to create a fresh solution i.e. a statutory DMP. Since the DMP is the predominant personal insolvency solution in the UK at the present time, it is perplexing that the government seems to shrink from the obligation of legislating in this area. So what is the current condition of national debt management advice and how can it give relief to debtors? Continue reading
Banks and Treating Customers Fairly
The UK’s big five banks recently reported huge half year profits to the City and are projecting profits over £40 billion for the full year. I don’t want to sound like Gordon Gecko but “profits are good” and these profits could be construed as good news of a buoyant economy. Sadly however this is against a backdrop of falling house prices, rising interest rates, high levels of household debt, house repossessions up 30% on last year and inevitably an increase in the number of individuals seeking help with debt problems. Continue reading
Self Employed Workers and IVAs
Over the past few months there have been numerous press articles concerning the increasing level of personal insolvencies and in particular Voluntary Arrangements (IVA’s). IVA’s were introduced in England and Wales in 1986 followed by Northern Ireland in 1989. Initially, they were aimed specifically at trading businesses and the self employed but are now most commonly used by individuals who have amassed uncontrolled levels of unsecured debt. Continue reading
Options For Debtors And Lenders
When confronted with enormous financial debt worries it’s easy for the solitary borrower to neglect the effect of non-payment or late settlement on creditors. The financial institution is frequently considered as the big bad wolf and not worthy of any sort of sympathy from the beleaguered person in debt. The reality is that creditors have a vested interest in the fundamental alternatives that the borrower takes in order to resolve debt matters. Financial institutions can be helpful and amenable especially when the consumer spots and confronts debt difficulties at an early stage with a view to remedying them to everybody’s satisfaction. What are the choices for the borrower? Continue reading
Safe Debt Solutions – Debt Management
If you are having financial trouble and are having difficulty repaying your creditors, one of the debt solutions you are likely to become aware of is a Debt Management Plan. This is known as one of the big three debt solutions in the UK in terms of the number of people who use them. The other two are Individual Voluntary Arrangements (IVAs) and Bankruptcy. It is estimated that there are up to one million consumers in the UK currently in debt management plans with their creditors. Continue reading