Diary of a Debt Advisor: C for Care

one older gentleman ended up needing my debt advice in order to enable him to still be able to afford his carer.

Mr Smith was around 85 years old, and, whilst he still lived at home, he hired a regular carer who travelled over from the local care home every day to feed him and make sure he was coping alone. He lived in a one-room bedsit and struggled to look after himself. Unfortunately the amount Mr Smith was receiving from his pension just wasn’t enough to allow him to continue paying the care home from whom he’ d hired the carer and he began to fall behind on his payments when they fell due.

The reason Mr Smith was finding it so difficult to pay his outgoings stemmed back to credit card payments from years ago. Rather than paying off all his debts at once he had got into the habit of only making the minimum repayments – which meant he had more to pay over a longer term. Whilst he had been earning he had just about managed to break even, but as his pension was so slim and the amount he owed was £450 per month he was unable to manage his debts and, because he couldn’t pay the care home, his carer just stopped turning up.

I managed to speak to his creditors and get the minimum monthly payment down to a manageable £120, which meant that Mr Smith could actually pay back the council and still had enough money left over to get his carer back.

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Posted in: Advisor,Diary

Shapps initiative: £20m roof over our heads?

Wednesday 22nd February 2012

Homeowners facing financial difficulty may have been cheered by the recent announcement from Housing Minister Grant Shapps about the introduction of the Preventing Repossessions Fund.

This new £20 million safety net to help homeowners who are struggling with mortgage arrears allows councils to offer small interest-free loans and ensure that court desks can offer on-the-day advice for those facing the prospect of repossession.

The Housing Minister said: “Repossession should only ever be the last resort. No one in financial difficulty should be embarrassed to seek help if they need it. Today’s cash ensures that no matter where you are in the country the advice and the financial support is on hand to help people get on top of their finances and keep them in their hard earned homes.

“Getting advice early is important but even for people facing a court hearing repossession is not a foregone conclusion. By extending the reach of the Court Desk scheme we are ensuring that no one is left stranded without the support of the free on-the-day legal advice that has already saved thousands of families from repossession.”

Kevin Still, Director of Atlantic Financial Management, commented on the initiative: "With the CML predicting increased repossessions in 2012 and the disappearance of the Sale and Rent Back market this may provide some welcome respite to indebted homeowners, but we will want to see how it operates in practice. What is clear is that millions of homeowners continue to see an erosion in their disposable income and quantitative easing measures only support these to a limited extent. We would expect to see more families seeking help in 2012 as the recession continues to bite."

The Preventing Repossessions Fund gives every local housing authority the ability to take out small interest-free loans of less than £5,000 or grants to help them get their finances back under control.

£1 million of the fund is allocated to making sure that free legal advice is available on the day for any homeowners in danger of losing their homes. A further £19 million has been designated to ensuring that the council can offer local people financial support to counteract the threat of repossession.

Lee Schofield, Broker Account Manager at Ashley Park Debt Solutions, said, “We at Ashley Park welcome any help for people who are facing repossession. One of our key aims is to ensure our clients remain in their family home.  

“Whilst the interest-free element to the loan means it is a great initiative, in reality this becomes another commitment to meet each month and as such the person taking the loan would still have to deal with the issue of how to reduce overall outgoings to prevent this from happening again. A Debt Management Plan allows them to deal with these debts and help put them in a more stable position moving forward.”

Alasdair Warwood of APDSI said: "We would expect to see financial intermediaries increasingly coming across homeowner clients, who are unable to remortgage or sell their property, requiring financial assistance."

Unique technology platform offers 'market-changing' solution
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Wednesday 4th January 2012

England footballer facing bankruptcy battle
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DMT Insider - Debt management in 2012
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Posted in: heads,initiative,Shapps

In Profile: The Round Up

Throughout 2011 and into 2012 Debt Management Today has conducted a number of In Profile interviews with various figures in the debt industry in an effort to get their views on some of the biggest issues of the day. We thought we’d take this opportunity to take a look through our archive in order to determine some of the overriding issues in the sector and what people in the know really think needs to be done to continue raising the standards of debt management...

Biggest issues

Changing the public perception of debt management is something that interviewees, including Rehan Ahmed, flagged as a continuing problem. He said: “The media don't necessarily help the image of insolvency practices. Most of the mainstream media will publish articles which show the industry in a bad light where the practice charges thousands in fees and left nothing for the creditors by way of a dividend.

“It puts clients on a back foot from two angles: firstly the client already has the image that any insolvency advice or service is going to be extortionately expensive and, secondly, many people think this is all a sham and they don't want to be involved.”

Emma Bryn-Jones, of Zero-Credit, highlighted trust as a major issue: “The technology to spam and scam is immense and the accountability for such actions negligible, not least when the regulators are between a rock and a hard place with cuts to public spending. 

“Any debt advice or resolution provider who wants to retain consumer confidence needs to communicate transparency, integrity and respect for others who operate fairly - whether fee-charging or free. The return on investment will be long-term, but after at least a decade of unprecedented growth in consumer credit, we need to look at the bigger picture.”

Charles Greed, of In Control Debt Solutions, explained that issues include: “Poor standards of advice, inconsistency of fees charged, an ineffective and underfunded regulator, inconsistency in delivering compliance across the industry, lack of training and too many rogue traders who are still able to continue duping vulnerable individuals with the promise of debt write-off or immunity from debt collection.”

The Debt Advisor’s Bev Budsworth told us that one thing she predicts is quite a lot of consolidation occurring over the next couple of years: “The industry is somewhat saturated – there are a LOT of service providers.”

She added, “The OFT jumped into action a couple of years ago and really went through the industry and cleaned it up. In the long-term, I think regulators will get tougher with regard to compliance, but from my perspective that’s definitely not something I think service providers should fear.”

Things to change

We also asked numerous industry members what they would change about the sector if they could. Nick Pearson of the Paymex Group highlighted a couple of points that bother him: “I’d like creditors to make their customers aware that if they are going to pay for debt advice they should always go to a DEMSA member. The reality is that many people in debt will choose to pay for debt advice and creditors need to steer these people to reputable firms rather than allowing them to take their chances on a Google search.”

As someone who has sat on both sides of the fence (he worked for 27 years in the free-to client sector) Nick felt strongly that he “would like to see even closer working relationships between free and fee charging debt advice providers as this will benefit clients.”

Indeed Melanie Giles, of the Association of Professional Debt Solutions Intermediaries, highlighted the good work done by both sectors. “APDSI encourages its members to know about the full spectrum of debt solutions, and we ensure that our members are correctly educated on the differences between the commercial and free sectors in order that they are able to signpost solutions of choice.

“The fee vs. free debate should not detract from consumers or small business owners need to obtain often immediate debt relief – and there is much good work done in both sectors.”

Future plans

Most of the individuals we have been speaking to highlighted regulation as a key issue in the market. The OFT’s soon-to-be-released updated Debt Management Guidance has stirred numerous debates in the debt arena – something which many of our interviewees highlighted.

Fairpoint Group’s Michael Fitch said: “I think in the next 12 months we will still see a lot of activity regarding the way in which the OFT wants the industry to be regulated and how that is done. When things are a little clearer it is likely more people will exit the market and there will be five - ten ‘main’ providers left who will all have similar compliance, fees and set up.

“It will then be down to the way in which those businesses deal with their clients to set them apart from the rest. In this industry ‘less’ could actually be ‘more’ – there are so many people in the market that not all are members of DEMSA or DRF which makes it difficult for the OFT to ‘manage’. When there are fewer providers, it will give them the ability to control the industry.”

Talking to such a broad spectrum of individuals obviously produces a wide range of differing views. However, some common themes have emerged, including a belief that increased regulation (as the OFT focuses more heavily on the industry) will encourage more compliance within companies, more work needs to be done to change the public perception of debt management and that, despite best efforts, a minority of rogue traders continue to bring the industry into disrepute.

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Posted in: Profile,Round

Mortgage adviser’s £1.6m con foiled by bankruptcy

A respected mortgage adviser who was introduced to ‘cherry-picked gullible clients’ by a partner-in crime-has been given a two-year suspended prison sentence when his £1.6 million fraud was uncovered after his bankruptcy sparked an investigation into his affairs.

Wealthy Gott used his mortgage advice company as a cover for the scam. He wore expensive suits and took frequent foreign holidays, boasted that he earned £170,000 a year as Managing Director of Red Brick Mortgage Services, reported the Daily Mail.

His small firm provided loans for a string of friends and acquaintances between 2002 and 2007, conning the banks out of £1.6 million in all.

Anthony Gott, 46, worked with partner-in-crime David Hood, 47, in a jointly run £1 million mortgage scam. Hood would cherry-pick gullible clients to make the applications while the operation was fronted by Gott. But the pair were caught when Gott became greedy and went bankrupt, sparking an investigation into his affairs.

The two men, who dreamed of ‘executive size’ pay packets, conned banks out of £1,034,017 in house loans over five years. The remaining £600,000 attained was presumably of Gott’s own accord.

Customers filled in fake occupations and incomes on mortgage applications to get loans up to six times what they would normally be able to borrow.

The fraudsters used self-certification mortgages open to the self-employed to con High Street banks and loan companies into advancing money for properties.

Gott employed 25 people and lived in a £450,000 converted barn in Rawcliffe with wife Kim and had used some of his £800,000 ill-gotten gains to buy a swimming pool and decorate his home.

The joint fraud operated from Gott’s offices near Goole, but Hood hid vital financial papers in a council lock-up garage.

Hood, from Goole in East Yorkshire, traded in second-hand goods and managed a burger van as a cover for his illegal schemes.

Wheeler-dealer Hood would sign fake mortgage applications and was determined to earn a fortune through his dodgy deals. He even bought five buy-to-let properties of his own.

Hood pleaded guilty at Hull Crown Court to two charges of obtaining £231,000 by deception. His girlfriend Tina Lacy, of Hemmingbrough, pleaded guilty to three charges of obtaining money transfers by deception and one of fraud.

Hood recommended customers to Gott for a commission. Despite being jailed in 1990 for obtaining a mortgage by deception, he took out two false mortgages in 2003 and 2006 on his own home.

Judge James Sampson gave Gott a two-year suspended prison sentence, while Hood and his girlfriend were given 18-month suspended prison sentences and 300 hours community punishment.

Judge Sampson told Gott: “It was dishonesty and greedy behaviour on your part, which took advantage of the greed of lenders.

“What the people who have signed your character references should realise is, you are a thoroughly dishonest man.”

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Posted in: advisers,Bankruptcy,foiled,mortgage

Zero-credit empowers borrowers digitally

A new era of transparency

Where would you shop, at “the home of fresh baking”, or where “we never sell a stale cake”?  No prizes for guessing which slogan is Greggs’!  The trouble with debt help is that it is a stale cake - as trapped in stigma as debt victims themselves.  No one wants to talk about it, politicians simplify it and the media exaggerate it to get a good scoop.  This is why personal borrowing has sat at £1.5 trillion since 2008 and the likes of Mumsnet report some 70% of households as struggling. 

The market for recovery

In reality, debtors are no longer an errant minority, but in the mainstream.  Many are the “can’t pays” of a change in circumstances, apparent in the changing profile of debt clients and dynamic growth across the high cost credit sector.  Financially, but not necessarily socially excluded, the squeezed middle is accustomed to choice. 

Leading the debt debate on digital since mid 2009, Zero-credit epitomizes the trend.  Digital media are not simply a cost-effective message board for posting a take-it-or-leave it offer.  They engage a diverse audience, who, far from remaining victims consigned to limited choice, become empowered to browse and compare.  Recovery is dependent on their doing so, because fresh baking is more motivating than stale cake.

Making informed choices together

In Digital Presence for Debt Advice and Resolution Professionals, Zero-credit correlates key digital trends and  service attributes with the latest guidance from the OFT.   Featuring a selection of policy and advice exemplars, this innovative work approaches digital engagement as an arena where consumers and professionals are making informed choices together.  Digital Presence for Debt Advice and Resolution Professionals is on sale at £97, with attractive discounts for members of professional associations and Zero-credit subscribers.

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Wednesday 4th January 2012

England footballer facing bankruptcy battle
Wednesday 14th December 2011

DMT Insider - Debt management in 2012
Wednesday 14th December 2011

Are back book buy-outs the future?
Wednesday 23rd November 2011

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Posted in: borrowers,digitally,empowers,Zerocredit

Chris Choi’s ITN blog on “Britain’s Growing Debt Burden”

by Andrew_F_Smith on March 8th, 2012

ClearDebt’s Andrew Smith responds to comments made by ITN’s Chris Choi on “Britain’s Growing Debt Burden” and gives his thoughts on why the fee vs free debt advice debate isn’t black and white.

There has been a lot of coverage, in the last day or so of a report on payday loans and debt management by a committee of MPs (the House of Commons Select Committee on Business Innovation and Skills). ITN’s Consumer Editor, Chris Choi, was one of the journalists that wrote a blog on this.

Possibly unfairly, I’ve singled him out because I think the MPs’ report has already been overtaken by events and because I believe the media’s usual conclusion that free advice on debt is good advice is often not the case – and that the fee-charging debt industry is not as high risk as we are portrayed. At least, in parts (which I know is an issue that must be addressed) The OFT is on the case, supported by the debt management trade associations like DRF, and their members.

I thought a comment on Chris’s blog would give me an opportunity to put the case for fee-charging debt management but, as I write, the comment (supplied yesterday) is still in moderation – so I reproduce it here:

It’s rather more complicated, as regards debt management, than portrayed above.

First, the MPs report (I was a witness) skates over a lot of issues and does not join up the dots.

The Money Advice Service, who are now the ringmasters for consumer debt advice in the UK, say that roughly 2 million people in the UK need debt advice. Last year the free advice agencies, like Citizen’s Advice, who provide face to face debt advice, managed 100,000 interviews. So, 5% of what’s required . This year they are being challenged by Money Advice Service to do 150,000 cases. On the same funding. Pips will squeak.

Then, there’s this assumption that free advice is always good advice. Most plans from agencies like CA do not involve distributing the money you can afford to your creditors. And, MAS is advocating much more “self help” in the future. For people who often can’t help themselves? Recent research from the Royal College of Psychiatrists shows that 50% of those people who need debt advice are exhibiting symptoms of mental illness. So, one in two of all the people with debt issues, not just the most vulnerable, are unlikely to cope with self-help debt advice.

Whilst I’d be the first to agree that the fee-charging debt resolution industry has had low standards and poor behaviour . Take members of the Debt Resolution Forum (DRF): They have a code of practice that is higher than that required by the Office of Fair Trading, a 210 hour, three exam, academically accredited qualification for advisors and administrators, annual on-site inspection by a government trusted independent monitor and an independent complaints committee, with a majority of members from outside the industry.

Things will continue to change. The new guidance from the OFT, the work being done by the Insolvency Service on protocol or regulated debt management plans and the huge changes planned by MAS between now and autumn 2013 will all change the landscape hugely. But, I think that a mixed economy of free and fee-based debt advice is the only way to meet Britain’s need for educated, capable consumers who know how to manage their money.”

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Posted in: Britains,Burden,Chois,Chris,Growing

Frugally Delicious – Buy the Book

by Marketing on April 26th, 2012

Frugal = something which costs little, or is inexpensive.

Right now most of us are watching the pennies more closely, looking to save money where we can and live a little more frugally. With this cookbook we hope to help people do just that.

But ‘frugal’ needn’t equal drudgery. Frugally Delicious is a cook book chock-full of taste bud pleasing recipes made from great ingredients which won’t break the bank.

This isn’t a fancy ‘coffee-table’ cookbook. It’s a cookbook for proper cooks, for people who want their food to do the talking.

It was created with the generous support of 55 fabulous food bloggers who kindly donated their recipes for inclusion within this book. With recipes for light bites and snacks, soups, salads, hearty main meals and of course desserts – there’s something for everyone.

If you love food, but not sky-high grocery prices, then Frugally Delicious is the cookbook for you. The book is a budget-friendly £3.30 / $5.29 excluding postage and packing.

Click here to order your copy today.

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Posted in: Delicious,Frugally

A client’s story – The voice of experience

by Sally Hardiman on May 2nd, 2012

‘It’s that first step which is the hardest’ our client John explains. When faced with a daunting decision or admitting you are out of your financial depth the first step is the difficult part, the rest is just a case of momentum.

John had made the first difficult step and contacted Abacus our sister company when he found his situation overwhelming; we were able to provide the momentum he needed to get his life back and see an end to his debt problems.

In his own words John explains how his money worries began simply enough but quickly spiralled out of his control and how, with our help, he is on track to a debt free future.

I was going through a divorce at the time and working abroad in Saudi Arabia when my money difficulties first began.

I had a medium to large overdraft that I had gone slightly over on a couple of times previously, however this time the bank refused to allow it and removed the facility in an instant.

All of my wages were going into the account but I couldn’t access it; I was left with no money to pay the bills and the threatening letters and calls soon mounted up. I just didn’t know what to do or where to look. I was completely at a loss.

As I was in Saudi I felt even more desperate. I decided to look online where I found the Abacus website, filled in my details with my Saudi Arabian number and doubted if anyone would bother to call.
To my surprise, on the day I asked for a call I was contacted.

From that first contact I was put at ease and knew I was in safe hands. I was reassured that even though I was abroad they could still help me.

I described my situation and gave my accounts, bills and monthly payments, including commitments in the UK. They explained the best solution for me and how they could organise the monthly payments to everyone I owed.

I was still worried about letters and phone calls about non payment but again I was put at ease and informed that any letters or calls should be passed on to Abacus as they would take care of it for me. They certainly kept the wolves at bay and more importantly – from the door and by doing that, it gave me time to sort my life out.

My debt management plan had just over a year left to run when Abacus managed to help me claim back money from a mis-sold PPI policy. Using this money wisely, and offering full and final settlements to creditors, they helped me clear all but one of my debts.

Finally with this one debt left I now find myself with only a few months left until this episode of my life is finally behind me.

I found everyone I spoke to at Abacus to be efficient, honest, responsible, and very reliable but most of all they are caring and understanding. No problem was too big or small for them to sort out. I was dealt with in an exceptional professional manner; a team with great people skills. This is a company that care about you as a person.

I hope by reading this many others will be encouraged and take that first hard initial step too.

Thanks once again for helping me get my debts paid off and my life back on track.

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Posted in: clients,experience,Story,voice

The backlash against discount and deals websites – are you cutting back?

by Nazma Noor on March 21st, 2012

Recent reports have suggested that use of discounts and deal websites such as Groupon are on the decline. Vote in our poll and tell us if you’ve decreased your use of these sites.

For some people, shopping on discount and deal websites has become a part of their everyday life. Groupon, one of the most popular discount websites boasts over 414,000 Facebook fans on their US page and over 82,000 Facebook fans on their UK page. However a report released this week by a research group in Australia reported a 34% fall in “group-buying” transactions on websites such as Groupon.

Despite its success, Groupon have come under fire since they were founded in 2008 and are currently under investigation from the OFT regarding exaggerating discounts, failing to honour deals and “unfair terms”. Another deals website, Goodypass.com, which was backed by Daybreak presenter Kate Garraway, has been taking steps to stay afloat by making redundances and applying for a Company Voluntary Arrangement, which works in a similar way to an IVA.

Have you cut down on using deal and discount websites this year? Vote in our poll now and have your say.

Personally, I have been unsubscribed from Groupon and other similar sites for a few months now. I found the deals on offer didn’t appeal to me and I felt like I could do without the temptation to buy things I didn’t need. Stories of poor customer service have also made me think twice before purchasing from a deals/discount website.

Here are some other experiences of these websites:

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Posted in: against,backlash,cutting,deals,Discount,websites

Are we a nation of mothers who equate childbirth with debt?

by Jacqueline Cohen on April 25th, 2012

This month comparison website uSwitch.com claims one in ten women are forced to cut short maternity stay with their newborn babies due to money worries. The report also confirms the belief that nearly a third of mothers end up £2,500 in debt while preparing for their new arrival.

As someone who has been through this very experience, I decided to swallow my pride and share my story with The Sun to try and show people that this can happen to anyone; more often than not, it’s not about overspending or being careless with money, it’s about a change of situation which means that your income decreases and therefore the challenge of covering your monthly costs becomes a constant worry.

My story started in the summer of 2008 when I was six months pregnant. My husband and I had savings prepared for the new arrival and we were confident that all costs would be covered when I took a few months off after the birth before returning back to work.

Jacqueline and her daughter Savannah

But unfortunately, the first signs of the recession hit and as we worked for the same company, when it went into administration, we were both made redundant. Whilst we had saved for one of us being out of work for a few months after the baby, we certainly didn’t have enough savings to cover both of us being out of work. Our world was truly turned upside down and it was time to sit down and go through our income (which was pretty much zero) and our outgoings, and work out how on earth we would cover our essential costs.

I was lucky enough to join the Marketing team at ClearDebt around a month after we went into administration but left for maternity leave just 12 weeks later. My husband was unable to get permanent work until just before my daughter was born, however his new employers had overestimated their budgets and shortly afterwards, let him go. My daughter was just two weeks old. Again we had no money coming in and the savings which were originally saved for when the baby arrived had been used to supplement the single income we’d had for the previous four months. I had no choice but to return to work when she was just 6 weeks old.

Luckily, five months later my husband found work and my daughter went into full time child care. So, the story does have a happy ending after all ;)

Because it matters and because sometimes, tough situations come to face good people – like you, like me.
The perception of what kind of people fall into debt is changing – most people in this country have debt – be it a credit card bill, a mortgage or much more; the emotional burden of paying off that debt is huge. So when the issue of women on maternity returning to work early hits the headlines, I feel it’s time to hold my hands up and share my story – after all, I’ve certainly been there, done it and got the t-shirt.

The problem with a lot of these reports is that they come out, hit the headlines and then go away quietly to the back of beyond until the next report with similar statistics comes along. I’m hoping this time it will be different. Doubtful though.

Many women on maternity receive just £135.45 per week after the first six weeks of their maternity leave – this just about covers the cost of the milk, nappies and wipes – but doesn’t help contribute to living costs of a family who have committed to a mortgage and utility bill payments based on two salaries. I’m not suggesting in any way the government should pay for the missing second income, but I do think more thought should be given to this situation and how families can prepare better and be better supported through these times – even if circumstances unexpectedly change.

After speaking on BBC Radio Kent last year about the number of women putting off having children because of financial worries, this is a much bigger issue than some would believe.

My personal opinion is that in this day and age, you can save your pennies in preparation of new arrivals and those who say “If you wait until you have enough money, you’ll wait forever” are out of touch with the effects of the recession. We shouldn’t be opting into debt by having children, we should be saving and preparing financially to provide a secure environment. However, circumstances can change which are out of our control and I’m asking, when that happens, what additional support could be provided?

If you’ve gone through a similar experience, why not share your thoughts with us now too?

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Posted in: childbirth,equate,Mothers,nation

How do I… budget?

Whether in debt or not, we should all learn to budget. For some of us budgeting will come naturally, but for others it can be more difficult. Therefore we have put together a guide to show you how to prepare a budget:

Gather all information together to calculate your income.Gather all information together to calculate your current expenditure.Split your expenditure into two categories – fixed and variable. Fixed will consist of your mortgage or rent, council tax, utility bills and insurances amongst other things. Variable will consist of shopping, fuel, public transport, mobile phones and leisure outings amongst other things.Look at your variable expenditure and see where you can make instant cut backs – change your supermarket, download apps to make free phone calls and send free text messages, use coupons and vouchers to reduce spending on going out and walk or bike instead of using your car.For your fixed expenses look at ones that can be changed such as insurances when they are up for renewal and utility bills and see where you can save money.Set yourself a weekly spend limit and stick to it. Using cash instead of cards will usually help with this.Review your budget every few months to make sure it is still affordable and that you are sticking to it.

Do you have any budget tips? Share them with us by leaving a comment in the box below.

And remember if you are struggling to make ends meet and make you repayments to creditors then please call us on 0800 2945205 or fill in our online referral form and we will call you.

Written by Gemma on May 11th, 2012

Filed Under  Budgeting   |  Trackback  |   Leave a Comment

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Posted in: budget

How do I… deal with my creditors?

When you are in debt and beginning to struggle with the repayments, you may find that your creditor(s) increase their communication with you. At Payplan we hear a lot of people say that they are unable to cope with the constant contact from their creditors or they don’t know how they should be dealing with them.

This blog is going to look at ways in which you could deal with your creditor(s) to make the repayment process as stress free as possible.

When you take out credit, whether a credit card, store card, overdraft or loan, you sign a credit agreement to say that you will maintain contractual payments towards what you borrow until it has been paid in full.

Creditors are aware that unforeseen circumstances occur; such as redundancy, illness or additional expense. If something happens and you suddenly find yourself unable to make your monthly payments, it is extremely important to contact your creditor(s) as soon as possible to inform them. By doing this you can discuss with them how you are going to proceed with future payments. If your situation is going to last longer than one month, to avoid your creditor(s) pursuing legal action against you, you should come to an agreement to make reduced payments until you find yourself in a better position.

Most high street lenders have the capability to deal with customers that are in financial difficulty, so by speaking with them you could get advice on how to deal with your debts. Payplan have a good relationship with a lot of these lenders, and they often direct their customers to us for free to client debt advice.

As well as maintaining contact with your creditors it is important to maintain some form of payment to them. We would usually recommend our client send in whatever they can reasonably afford.

To conclude, when you find yourself in financial difficulty it is always recommended that you keep in contact with your creditor(s) at all times and to maintain small payments.

If you find yourself struggling, it is important to seek help as soon as possible. You can speak to one of our trained specialists on 0800 2945205 or fill in our online referral form and we will call you back.

Written by Gemma on April 27th, 2012

Filed Under  debt advice, Payplan   |  Trackback  |   Leave a Comment

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Posted in: creditors

Money Saving Apps

With the growing popularity of Smart Phones and Tablet computers, we are seeing more and more ‘apps’ that are aimed at helping people save money and help with budgeting. We have looked through lots and lots of apps and put together a list of our favourites.

Quidco The Quidco website offers cash back deals on a number of high street stores and products. They have now made it even easier for us by bringing out a free app for the iPhone and Android which allows you to “check in” to different shops and restaurants as you enter them. You will then be rewarded with access to offers and in-store cash backs in some of the stores.

Vouchercloud Vouchercloud is a website offering extensive deals and discounts for all kinds of shops, restaurants and other services. With their free app available for most smartphones you can access dozens of amazing deals close to where you are, like 25% off your restaurant bill. The Vouchercloud app uses GPS technology to allow you to view the best offers and discounts closest to you on your own mobile phone screen.

RedLaser An exciting, new, free app which allows you to scan the barcode of an item that you may want to buy and instantly compares to see if you can buy it cheaper anywhere else. Available for the iPhone and Android, it means you’ll always know where to find the best bargains.

Pricerunner Pricerunner is an extensive UK shopping comparison website. The website offers impartial comparison and lists millions of products and special offers from retailers, both big and small as well as online and offline. Pricerunner will show you the best prices and offers for a variety of products.

iSpending This handy free app allows you to keep track of what you are spending. You can add both income and expenditure as and when it occurs. The app will then total each area up and you can then see where you are spending your money and see if there are any areas in which you are overspending. Beware there is also a paid for version of this app that costs 69p, this gives you a few added benefits.

My Voucher Codes Similar to vouchercloud, My Voucher Codes offers you deals for shops and restaurants in your area. There is no need to log into their website as they can send you the voucher code straight to your Smart Phone.

mySupermarket If you have used their website you will know how they work. You register with them and tell them where you usually shop, you can then go through and add your grocery shop into your basket. Once everything is added you can compare all of the major online retailers – Sainsbury’s, Tesco, Asda and Ocado to see which is the cheapest. The app works in the exact same way, with the added advantage of being able to scan items straight to your basket.

If you have tried and tested any of these apps, let us know. And if you’ve found any, then please share them with our other readers.

Written by Gemma on April 4th, 2012

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Sim Ilyas says

Good list. I use many of them. I’d also like to put forward: 

A great new app from MSE an essential for train travellers: http://splitticket.moneysavingexpert.com/

And:

The first ever interactive debt advice app, includes a comprehensive income and expenditure section which many people have found invaluable: http://www.debtology.org.uk/

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Reducing your outgoings.

In this current climate trying to reduce your outgoings is a constant uphill struggle as it seems on a weekly basis we face rising costs in gas, electricity, water, phone bills, food or fuel. However if you are savvy with your spending and really look at where your money goes you can start looking at areas that can be reduced.

Here are some handy tips:

Take a packed lunch to work instead of buying lunch out. This could save around £3 a day, over the course of a week that’s £15, over a month that’s £60 and over the year that’s £780!Re-evaluate your gym membership, do you need this? Do you go to the gym on a regular basis? Why not take up something that costs nothing like running? Or something that costs very little, like a workout DVD?If you drive to work, could you walk instead? If you can, you could save yourself a lot of money in fuel as well as maintenance of the car. If you need to drive, have you considered car sharing? This way you can split the costs with one person or several people.Look at what you pay each month for your mobile phone contract, do you use all of your minutes and texts? If you don’t, then why not see if you can reduce your contract and save yourself some more money each month. At the other end of the scale, if you find yourself constantly going over the allotted allowance and receive more charges, then look into increasing your contract to save yourself more in the long run.Do the same as above with your internet and satellite TV package, do you watch all of the channels that you pay for? Look at what add on packages you can remove and once again save more on your monthly expenditure.When it is time to renew your insurance policies, make sure you shop around and get the best deals that you can.When doing your food shopping, make a list of everything that you need to avoid any overspending and try and resist any impulse buys as these can add unnecessary costs onto your weekly shop.It is also a good idea to make a list of exactly what you are spending each month, use old bank statements to see how you’ve spent your money over the last three months. You can then see where you are overspending or buying things that you don’t necessarily need.

There are many more ways in which you can save money, these are just a few to get you started. If you have any tried and tested ideas then please feel free to share and help others out.

Written by Gemma on March 7th, 2012

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How do I…apply for an IVA?

An Individual Voluntary Arrangement, or an IVA, is a legally binding agreement between you and your creditors. It is one of many solutions to help people who are in financial difficulty.

An IVA allows you to make regular monthly payments to your creditors with the security of knowing that they are legally bound by the agreement. This means that they cannot apply interest and charges or pursue you with any further legal action, such as a County Court Judgement.

An IVA generally lasts for five years, however it can be longer with one of the most common reasons depending on whether you have a property and whether you are able to release equity from it.

With many people delaying the chance to get debt advice some may find themselves in a worse situation. We would always advise people to seek debt help as soon as they can. Here is a guide to show you what to do in preparation for applying for an IVA.

The first thing that you need to do is to do your research and find a recommended company…

Contact your local Citizens Advice Bureau or contact National Debtline who will be able to provide you with a list of recommended companies.Speak to friends, family or your employer as they might be able to recommend a reputable company to you.Visit forum or review sites to see what other people have done in your situation and find out about their experiences with different companies.

Once you have found a company that you are comfortable with you will need to gather the following information together in preparation…

A list of all of your creditors, including account numbers and amounts that you owe.A list of your income and expenditure, as this will help to determine what surplus you have available to pay your creditors.Gather information about your assets such as your car, home (including your outstanding mortgage balances and value) and savings.

This should help you in your journey to become debt free through a IVA.

If you would like to speak to one of our debt specialists, then please call 0800 2945205 or fill in our online referral form and we will call you back.

Written by Gemma on April 18th, 2012

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Online Surveys – Are they worth it?

Online surveys seem to becoming more and more popular with posters on forums like Money Saving Expert and IVA.co.uk. Many posters use survey sites to earn points that then turn into vouchers.

How do they work?

They work by using a simple format: you register with a survey site and enter details about yourself. These details will then allow the sites database to send you relevant surveys. Once a survey is available to you, you will be asked a series of questions to answer; with the survey times varying but it will usually state how long it should take at the beginning.

How do you get paid?

Each survey site is different, as some give a monetary value for each completed survey, while others give a point’s score. Each site will have a threshold for when you can redeem your completed surveys into vouchers. Some sites offer High Street shopping vouchers, while others offer supermarket and retail vouchers. Some do offer payment by cheque; however you may find that the payment threshold is a lot higher.

How do I find these sites?

Money Saving Expert has a good list of sites that are worth looking at. The list tells you all that you need to know about each site. Click here to see the list.

Are they worth it?

One of our clients wrote to us to give us her opinion on survey sites…

“I would like to recommend people signed up to marketing websites for some extra cash in the form of vouchers. I have used Amazon vouchers for purchasing discounted books and even a Kindle (£15.00 six times per annum adds up to nifty money). There is a good choice of vouchers. At the moment I have £20 in J Lewis / Waitrose and expecting £15 any time soon for use at Amazon. I am saving up for new curtains.

I have some £15.00 on Nectar card and  £11.50 in Tesco vouchers. All these little sources of vouchers add up to nice sums for extra treats. I have managed to buy lovely furnishings incl. table lamp, dining chairs, fireplace and mirrored coffee table which adds light to my otherwise dark and sparsely furnished living room. Rome wasn’t built in a day and I can be patient.”

Have you ever used a survey site and did you find it worthwhile? Let us know.

Written by Gemma on March 28th, 2012

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How do I… declare myself Bankrupt?

For some people, Bankruptcy is the best solution to help deal with their financial problems. For those that fit the Bankruptcy criteria, the process can seem long and, sometimes, confusing.

With the correct guidance the process can be a lot less stressful, so here is a brief guide to help you understand the process.

The first part to the process is to locate your local County Court and contact them to request an application form. You would also need to confirm with them the court fee. To locate your county court, you can either look up under Courts in the phone book or visit http://hmctscourtfinder.justice.gov.uk/HMCTS/ to find your nearest court. You can also visit http://www.bis.gov.uk/insolvency/About-us/forms/england-and-wales to download the forms, they are forms 6.27 and 6.28

Once you have received your application form you will need to make an appointment to attend court. You would always need to attend court in person as you will need to present your completed forms to the judge. Whilst at the court you will be required to make your payment for Bankruptcy including court fee and an administration fee.

Once you have attended court, you will then be assigned an Official Receiver. Your Official Receiver or OR will then work with you to determine how long Bankruptcy will last, how much your contributions will be and how much your assets are worth.

For more information about what Bankruptcy is then please click here or visit your local Citizens Advice Bureau.

Written by Gemma on April 25th, 2012

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