There are numerous resources available for UK borrowers seeking debt assistance. From essential budgeting tips to comprehensive literature on various debt solutions, the information is vast. However, with the rise of misinformation, including the often-discussed “IVA loophole,” it’s crucial to discern fact from fiction. Before diving into any debt arrangement, it’s imperative to understand its implications. Many debt solutions can profoundly impact your life, so being well-informed is essential. Making an informed decision requires access to accurate and reliable information. Always consult credible sources and verify any information that influences your choices. At Money Advisor, we prioritize helping individuals make…
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If you are struggling with debt, the best way to deal with your financial circumstances is to act now – or your debt problem could get worse. An Individual Voluntary Arrangement (IVA) is one way to help you get out of debt and pay back the creditors to whom you owe money. We often get asked questions about what is an IVA, how an IVA works, or more importantly is an IVA is the right debt solution for you. Instead of sifting through the search engines to find your answers, we have compiled a detailed help guide to ensure you…
Did you know that the average UK household spends £3,224 on groceries and £1581 on dining out and takeaways every year? According to Office for National Statistics, families in the UK spent a whopping 16% of their budget on food in 2019. If your monthly food budgeting is proving to be a struggle and you need debt help in the UK, We are here to help. Granted that food is an essential expense none of us can avoid but it is also true that most of us end up overspending on food – and all you need to do to…
The first step is to proactively assess your situation so you can work out ways to regain financial control How to Get Out of Debt? Step 1: Figure Out Where You Stand Start by figuring out how much you owe in total. You can do that by making a list of all your debts including credit cards, store cards, overdrafts, loans, arrears, and other types of debt. Once you have listed them all, check how much you owe on each debt, what is the applicable interest rate and what you are presently paying towards each debt every month. To make…
The pandemic is far from over and with the UK in grips of a second wave, there is a lot of uncertainty looming on the horizon. So far, homeowners in the UK have been relatively sheltered from the effects of this financial crisis. But with Ireland already on the verge of what seems like a mortgage arrears crisis, anxiety around the issue of mortgages is also increasing in the UK, especially in the wake of the second wave – perhaps rightly so. Mortgage Payment Breaks Have Been Tiding Homeowners Over Compared to tenants, homeowners have had it easier so far.…
Individual voluntary arrangements are legally binding agreements between borrowers and their creditors. When people enter an IVA, they agree to pay all or part of their debt back to their creditors at an affordable rate over a fixed duration of time, usually five years. After this time period, the remaining debt is written off. Individual voluntary arrangements are a widely preferred debt solution in the UK. The first step in securing an IVA is to work with a licensed insolvency practitioner and create an IVA proposal. This proposal will then be pitched to creditors who will vote on it. As…
When choosing a solution between bankruptcy and IVA you need to know what they are and how they work. What is an IVA and how does it work? An IVA is an Individual Voluntary Arrangement that is signed between an individual and their creditors. This agreement is signed to help them pay off their debts at an affordable rate. It is also considered to be an alternate option to bankruptcy. It is a private agreement that is legally binding. The term period of the agreement is usually 5 years or is set according to the creditor and the individual. During…
If you’ve been struggling to repay your debts off late, you need to seek debt help or advice from a professional as soon as possible. Financial problems and debt issues can cause a lot of stress and severely affect your mental well-being. Ignoring debt problems only makes them worse. So, the only way to proactively deal with them is to face them head-on and find a debt solution that works best for you. Figuring out which debt solution works best for you can be challenging. People often ask us ‘how to get out of debt?’ or ‘how can we write…
What is a debt management plan (DMP)? A debt management plan (DMP) is a debt solution that allows you to manage your debts through financial planning and budgeting. It is an agreement between you and your creditors to pay off your non-priority debts with one monthly payment. How does a debt management plan work? A debt management plan (DMP) can be used to help you pay off your debts. These can include loans, credit cards and store cards. It is not a legally binding agreement set up by you and your creditors to pay off non-priority debts. It is handled by a debt management…
The economic slowdown caused by the coronavirus pandemic has greatly affected borrowers struggling with debt problems. According to a Financial Times report, hundreds of UK citizens are worried about their finances with the worst-affected ones already considering extreme measures like bankruptcy or personal insolvency. Declaring bankruptcy is not a decision that should be taken lightly. In the UK, bankruptcy is a legal solution that can affect every sphere of your life. The decision to file for bankruptcy can affect the spending patterns, present lifestyle, assets, and future financial decisions of the applicant. That is exactly why you need to think…