Delta Debt Management & IVA Advice

How to save money on household bills

Gareth Chidgey — Wed, 05 May 2010 10:50:14 +0000

Today’s difficult economic climate means that now more than ever, homeowners are constantly on the lookout for ways to save money and avoid debt. Everyday things like household bills can really eat into your bank balance, pushing you closer to debt and bad credit, but there are ways you can make a few savings.

Tips and advice

Switch to a different energy supplier – Try using a comparison company to find out if you could save money by switching to another energy supplier.

Are you on the best tariff? Even if you’ve switched supplier, you still may not be on the cheapest and most suitable tariff for your needs. Energy companies are always increasing their prices, so make sure the tariff you’re on is still as good value as when you signed up.

Get a discount– You can get discounts from suppliers by signing up for dual-fuel deals (although it’s still worth checking whether getting your gas and electricity separately would work out cheaper), by signing up online or by paying via direct debit.

Check your bills – The amount your bill says and how much energy you’re actually using may not always match up, so check your meter regularly and let your supplier know so they can give you an accurate price.

Be greener – Find ways to use less energy in your home. You can be more energy efficient by insulating your walls and roof, upgrading and insulating your boiler, turning off unnecessary lights and electrical devices and having showers instead of baths.

How to save money on household bills is a post from: Delta Debt Management & IVA Advice

High Street banks need to make major customer service improvements

Gareth Chidgey — Thu, 29 Apr 2010 15:31:34 +0000

The Financial Services Authority (FSA) has criticised a number of High Street Banks for the quality of their customer service. After examining the way 600 different complaints were handled, the FSA says that situations are dealt with poorly.

Five unnamed banks were considered to be major offenders by the FSA. Two of the five are now being investigated further and large fines may be levied.

FSA director of conduct risk, Dan Waters, said:

“While we found some good practice, there is clearly evidence of unacceptable standards of complaints handling in banks.”

Waters went on to say that improvements had to be of the utmost priority, adding that the FSA would use all of its influence to encourage these banks to change their practices.

While the names of the five banks being addressed by the FSA are unknown, this follows on from similar criticism from the Financial Ombudsman Service last year. At that time, five banks were named as being the most complained about: Lloyds, Barclays, RBS-NatWest, Abbey and HSBC.

However, an HSBC spokesman said:

“HSBC can categorically confirm that it is not one of the five banks being investigated by the FSA.”

The report from the Financial Ombudsman Service painted a bleak picture of banks deliberately failing to address customer concerns and this recent criticism seems to indicate that little has changed. The FSA puts much of the blame at the door of senior management, saying they are often unconcerned with their complaints procedure.

High Street banks need to make major customer service improvements is a post from: Delta Debt Management & IVA Advice

IVA numbers rise as personal insolvencies hit record levels

Gareth Chidgey — Fri, 05 Feb 2010 11:37:09 +0000

IVA’s accounted for a large proportion of the 132,142 people who were declared insolvent this year according to figures released today by The Insolvency Service.

50% of this figure declared bankrupt, however, 50% managed to to avoid this by signing onto an Individual Voluntary Arrangement (IVA) or a Debt Relief Order. The overall amount increased by 26% on last years figures to a record high.

IVA’s are a way to avoid bankruptcy and clear your debt in a more controlled way with less impact on your credit rating. The Debt People are IVA advice specialists and have help many people arrange an IVA every year.

Corporate and Business Insolvency

The number of companies liquidated has fallen in the last three months of 2009 to 4,566. This is a fall of 1.7 per cent against the previous quarter and down 1.1 per cent year on year.

This shows that the country has signs of a recovery beginning, however, there are a large number of businesses who may have been saved by HM Revenue & Customs’s “time to pay” scheme, which has enabled struggling companies to defer more than £4 billion of PAYE tax and national insurance liabilities.

IVA numbers rise as personal insolvencies hit record levels is a post from: Delta Debt Management & IVA Advice

British Gas price cut could help ease IVA and Debt Management worries

Ivan Cooper — Thu, 04 Feb 2010 16:46:11 +0000

News that British Gas is to cut its prices could help ease the pressure on financially strapped consumers that are relying on IVA help or a Debt Management Plan as a way to get out of debt. The recession has taken its toll financially, and the bitter winter has left many people struggling to find money to pay their increased utility bills on time. IVA advice is being sought by UK consumers in record numbers since the onset of the credit crunch.

The British Gas announcement confirmed that the company will cut gas prices by an average of 7% immediately. It will be welcome news to people struggling with their finances and in need of debt advice.

According to the company, the average customer will save £55 a year because of the price cut, and they estimate that around eight million households will be better off. British Gas added that this is the third price cut that they have implemented in the past 12 months.

In the wake of the current global credit crisis, energy suppliers have been criticised for not allowing consumers to benefit from cuts in wholesale oil and gas prices, by way of lower bills. From February last year, wholesale gas prices have dropped sharply, and domestic prices dropped in the spring.

After pressure from consumer groups and the regulator British Gas said it had removed the different price structure for pre-payment gas meters. This means that those who settle bills by cash or cheque pay, on average, the same for their energy as pre-pay clients.

Customers benefit to a different degree depending on which part of the UK they live in as well as what price plan they are on. The price cuts are taken as an average. Electricity prices will remain unchanged for now.

The news will be welcomed by debt advice providers struggling to cope with over-committed consumers that are buried under a mountain of credit card debt and other monthly bills.

British Gas price cut could help ease IVA and Debt Management worries is a post from: Delta Debt Management & IVA Advice

IVA and Debt Management worries as borrowing on the increase

Ivan Cooper — Wed, 03 Feb 2010 16:28:53 +0000

Debt Management and IVA help providers are concerned at reports that UK consumers are retuning to their old ways when it comes to spending money on plastic. New UK borrowing on personal loans, overdrafts and credit cards has overtaken the amount being paid off by consumers for the first time in six months, sparking fears that reckless spending could cause an increase in the number of consumers facing financial difficulty, and in need of a debt help solution, IVA advice or a Debt Management Plan.

According to the bank of England, unsecured consumer credit rose £52m in the month of December. This was mainly driven by credit card borrowing.

For the same period, the number of mortgages that were approved for house purchases fell slightly compared with the previous month, to 59,023. This is still higher than the past six month’s average.

IVA and Debt Management companies have noticed a trend during the downturn where consumers have been inclined to pay off debts, however this appears to be reversing. Some people have been reluctant to save particularly with interest rates being so low. For five months in a row, repayments have outstripped new unsecured consumer credit.

The main cause is credit card debt which has risen by £195m. In an effort to get out of debt, many people have enterd debt Management progarammes or signed up for an IVA. The demand for overdrafts and personal loans has remained low, with repayments topping new agreements by £143 million.

The total amount of net borrowing by individuals rose by £1.2 billion in December, which is double the average of the previous six months. Most of the borrowing is in the form of mortgages.

IVA and Debt Management worries as borrowing on the increase is a post from: Delta Debt Management & IVA Advice

IVA and Debt Management firms concern over energy bills

Ivan Cooper — Tue, 02 Feb 2010 16:40:09 +0000

Concern has been raised by IVA and debt management companies as news emerged that homeowners face record heating bills. Figures have shown that energy firms are profiting from the coldest winter for 30 years. IVA advice specialists are worried that the spiraling costs of gas and electricity could force more consumers into financial difficulty.

The news comes as the country is just emerging from the longest recession for many years. Consumers struggling with debt problems have been approaching debt management companies in increasing numbers seeking IVA advice, or other ways to get out of debt.

Energy bills are expected to be 20% more expensive than for the same period last year, despite a fall in the wholesale price of gas. The combined charge for gas and electricity bills for a typical household are expected to be £104 higher for the quarter.

According to figures from the Daily Express annual bills have increased from an average £543 to £1,233 since 2003. This represents a rise of 127%.

An IVA, or Individual Voluntary Arrangement, is a debt management solution that allows consumers to consolidate their debts into a single monthly payment without the need for a loan. The monthly repayment on an IVA is set at an affordable level and the term of the arrangement is usually 5 years.

Any remaining debt can be written off at the end of the term. An insolvency practitioner will be required to set up and supervise the arrangement, and it is recommended that all consumers consider all of the available options before entering into an agreement. For IVA help it is recommended that you contact a reputable company.

The debt management industry is concerned that the wholesale price of gas fell by 60% during 2008 and 2009, but the savings made by the companies have not been passed on to households in the form of lower bills. A 30% increase in energy consumption has been estimated for this winter as a result of the freezing temperatures over this period.

IVA and Debt Management firms concern over energy bills is a post from: Delta Debt Management & IVA Advice

Brits may need IVA help after failing to put savings aside

Gareth Chidgey — Fri, 29 Jan 2010 15:05:54 +0000

More and more British people may need to consider an IVA or Debt Management Plan as Research has revealed that the average person only has about £2,000 saved up.

Reports from ING have claimed that as little as £40 has been put away during 2009 and that the average saving is £2,000.

This is just over one tenth of the £20,000 saved on average of the previous few years. However, the figures may be somewhat skewed due to the wealthiest five percent accounting for over one third of the total UK consumer savings. With this section of the country removed from statistics, the average only rises to £2,205.

The Telegraph was told by ING Group chief economist Mark Cliffe;

“meagre level of readily accessible savings that most people have.

“This leaves them with a very small buffer if they run into trouble,” .

The latest Nielsen-British Retail Consortium consumer confidence survey found that more people are choosing to pay off debts in the current economic environment, compared to those who plan to increase their savings.

Brits may need IVA help after failing to put savings aside is a post from: Delta Debt Management & IVA Advice

IVA: Do all my creditors have to agree to the terms?

Atiq — Wed, 27 Jan 2010 14:35:40 +0000

If you owe more money than you can afford to repay and you’re wondering whether an IVA (Individual Voluntary Arrangement) is the best way for you to clear your debts, you probably have a few questions you’d like answered. Of course, an IP (Insolvency Practitioner) would be able to answer your questions, but some questions are quite straightforward – like this one….

Do all my creditors have to agree to my IVA proposal?

If you do decide to enter an IVA – and your IP is confident it’s the right approach for you – you’ll work with him/her to draw up an IVA proposal, which sets out how you think the IVA could work (e.g. how long it would run for, and how much you’d be able to pay).

Your creditors will all have a chance to ‘vote’ on this IVA proposal – and it’s important to note that the proposal doesn’t have to be accepted by all of them.

Your IVA will be able to go ahead if it’s approved by lenders who account for at least 75% of your unsecured debt. So, if you owe £20,000, you’d need to have your proposal approved by creditors who collectively ‘own’ £15,000 or more of your debt. (Note that they may wish to request some changes to your proposal first – you and your IP will have to make yourselves available over the phone so you can discuss them.)

If it is approved by enough of your lenders, your IVA will be able to start. It will become legally binding on all your lenders – not just the ones who approved it, but also any lenders who rejected it, or who didn’t vote at all.

What happens if it’s approved?

Your IVA will begin and you’ll begin making your monthly payments to your IP, who will subsequently distribute money among your lenders as agreed.

Since it’s a legally binding agreement, your lenders won’t be able to change their minds or try to take any legal action against you to try to recover their money – including trying to make you bankrupt – as long as you stick to your side of the agreement. If you do, your outstanding unsecured debt will be written off once the IVA has come to a successful conclusion (in most cases, this would be after 5 years).

IVA: pros and cons

Like any debt solution, an IVA has its ‘pros and cons’. Most people would consider the following to be the most important ones:

Pros

Your outstanding unsecured debt will be written off when your IVA comes to a successful conclusion.
Your payments to your IVA will be set at a level you can afford after you’ve taken your essential expenses into account – so you’ll know they won’t take up money you need for things like your mortgage/rent, utility bills and food.
It’s extremely unlikely you’d lose your home in an IVA (although you may have to release equity from it). In fact, it can help you keep your home, since your IVA payments would be calculated to make sure you could afford your mortgage.

Cons

An IVA lasts 5 years. Bankruptcy could be over in just 1 year (although you’d probably have to make payments for up to 3 years).
You may have to release equity from your home so you can pay more into the IVA.
An IVA will stay on your credit report for 6 years from the time it starts.

The article was written by ThinkMoney.com. If you are considering entering into an IVA or other debt solutions visit the site today.

IVA: Do all my creditors have to agree to the terms? is a post from: Delta Debt Management & IVA Advice

Joanne of Sale

Gareth Chidgey — Mon, 25 Jan 2010 16:47:11 +0000

Joanne left University with Student Loans but decided that she would work hard straight away and pay them off. She managed to do so and so she had no real fear of debt.

Free from the burden of student loans she applied for a credit card. This came through no problem at all. Then she was invited to apply for another. After a while she decided to repay both of the cards with a loan from her bank, who at the same time gave her a third credit card. Now she had a loan to pay every month and things were getting tight.

In order to simply live each month she started to use her credit cards. She had also built up other unsecured debts. She didn’t think this would be a problem because she remembered how she had managed to pay her student loan off. But this time she just couldn’t seem to find the money.

Then someone advised her to think about bankruptcy but she was horrified at the thought. Luckily another friend mentioned The Debt People.

“When I called the Debt People I really thought that my only way out was going to be Bankruptcy but I really didn’t want to go down that route. Then the Debt People mentioned an IVA. I hadn’t heard of this before. They explained it to me and sent me some documents about it. They let me make up my mind in my own time. They didn’t pressure me – unlike the credit card companies who were always sending me letters and calling me on the telephone – sometimes even at work.

When the Debt People told me that all these calls and letters would stop, that I could avoid becoming bankrupt and that they could even negotiate the debt down I have to confess that I thought where is the catch. But there wasn’t one. 6 weeks after my first call to the Debt People my arrangement was approved. Now I have really got my life back on track”.

Joanne of Sale is a post from: Delta Debt Management & IVA Advice

Irene of Preston

Gareth Chidgey — Mon, 25 Jan 2010 16:43:42 +0000

Irene had no real idea of how much her house cost to run. All financial matters had been taken care of by her late husband. On her own she not only had to cope emotionally but now she had to try and run her home on her own.

Irene realised quickly that she couldn’t keep her head above water and when she rang The Debt People she owed more than £60,000. Quickly we were able to advise Irene that there was a way out. We negotiated her debt down to just over £30,000 and all she has to do now is make one simple monthly payment to us.

Irene told us that her biggest fear was actually dealing with the people that she owed money.

“Whenever I rang the credit card companies I spoke to a different person. I had to explain my situation to them but they didn’t seem to listen. I was sure that some times they didn’t believe what I was telling them was the truth.

Then I saw an advert for The Debt People. During all the times that I dealt with them I only spoke to 2 different people. Most of the time they contacted me and they always knew what my case was about. They listened to what I had to say and advised me in simple terms. Now I know where I stand and I know that as long as I make my monthly payment Ill never have to speak to the credit card companies again”.

Irene of Preston is a post from: Delta Debt Management & IVA Advice

Mike of Northwich

Gareth Chidgey — Mon, 25 Jan 2010 16:42:21 +0000

Mike had a great job and was earning a large salary. He set his life out according to how much he was earning. He built up substantial debts on loans and credit cards and none of these caused him any great concern. After all, why should they when he was taking home a lot of money?

Sadly for Mike his life took a turn for the worse. He suffered personal difficulties which meant he could no longer hold down his old job. He had to give the job up but he was left with the debts.

Mike was really at his wits end until he called The Debt People. When we processed Mike’s details we found that he owed £104,000. Even Mike couldn’t believe it and he thought his debt problems were worse than ever. However we advised Mike that the way forward would be an IVA. He accepted the advice and we were able to negotiate the debt down to £42,000, writing off over £60,000.

Mike of Northwich is a post from: Delta Debt Management & IVA Advice

£2,400 each to solve nation's debt management problems

Nathan Cameron — Fri, 11 Dec 2009 15:40:08 +0000

Each and every family in Britain will have to pay £2,400 to help cut the debt problems caused by the nation’s huge deficit.

This figure highlights the true extent of the financial pain that families across the land will have to face, according to the Institute of Fiscal Studies (IFS).

The think-tank predicts that even families from poorer backgrounds, who may be struggling with their own debt management issues, look set to see their living standards suffer as a result of the proposed measures to be introduced by Chancellor Alistair Darling.

To protect the “ringfenced” areas of schools, hospitals and the police force, there needs to be drastic cuts in other budgets – such as housing, transport, defence and higher education budgets.

Cuts of around 7 per cent a year, 20 per cent over three years, indicate the harshest squeeze since the Second World War, tougher than anything in the austerity years of the 1970s or early 1980s.

After three years some government departments will see their real-terms budgets cut by a fifth, with subsequent job and pay cuts inevitable.

This may mean that many people working within public sector bodies, or those providing services into the public sector, see their household finances squeezed as cut-backs and other budget cuts trim available cash.

Even in the NHS – where total overall hospital spending is protected – Health Secretary Andy Burnham conceded that there will be real cuts in some hospital and GP budgets, along with a pay freeze for doctors and a slash-and-burn approach to management.

Ivan Cooper, Chairman at debt help experts Chiltern, said: “Budgets across Britain look set to be streamlined, meaning many people will need to consider their own financial position more carefully – to prevent any serious debt problems from developing.

“For people already affected by the recession, independent debt advice from a reputable DEMSA affiliated provider – like Hamilton Locke or Chiltern – is usually beneficial.”

£2,400 each to solve nation's debt management problems is a post from: Delta Debt Management & IVA Advice

Three in four parents risk developing debt problems this Christmas

Nathan Cameron — Thu, 10 Dec 2009 12:43:06 +0000

Three quarters of families are at risk of developing debt management problems as research shows they are set to spend more money than they can afford on keeping children entertained over Christmas.

The additional cost of keeping children entertained over the festive season means that more than three in four parents (77 per cent) admit that they will spend more money than they can afford to on their kids, during what is an already expensive time of year.

According to research from online bank, Egg, the average family is set to fork out almost £40 a day on keeping boredom at bay from their children during the Christmas break.

Along with splashing out on toys and presents, parents are most likely to keep children entertained by spending on additional activities such as going to the cinema, going out for lunch or for buying books, comics or DVDs.

This all adds up to an average cost of approx £540 for the two-week British Christmas holiday.

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “Overstretching financially at this time of year can prove very damaging to finances throughout the rest of the year, as household budgets are squeezed to make repayments.

“With interest rates and additional tax rises expected next year, household finances are already set to be under increasing pressure, so it’s best to avoid potential debt problems by keeping spending in check over Christmas.”

Three in four parents risk developing debt problems this Christmas is a post from: Delta Debt Management & IVA Advice

Consumers continue to ease debt management problems

Nathan Cameron — Wed, 02 Dec 2009 14:49:35 +0000

Consumers have continued to repay their debts at a record level throughout October, as they continued to focus on paying down existing debts rather than taking out additional loans.

During October, people managed to repay their unsecured balances – such as overdrafts, personal loans and credit card debts – by £579m, the largest contraction since 1993 when the Bank of England started recording figures in this way.

It was also only the sixth time on record that consumer credit repayments have outstripped new borrowing.

This was driven by strong repayments on both loans and overdrafts, with additional borrowing on these falling by £713m throughout the month. However, lending on credit cards almost doubled, rising by £134m.

There was also another sharp fall in the amount of money held in building society savings accounts. October saw £1.24 billion more money withdrawn from savings accounts than was paid into them, the eighth month in a row where this happened.

Adrian Coles, director-general of the Building Societies Association, said: “There is little incentive for people to increase savings whilst the Bank rate remains at its current low level, and many may opt to repay debt instead.”

Ivan Cooper, Chairman at debt advice experts Chiltern, said: “The amount held in savings has fallen consecutively over the last eight months which is quite worrying, as it indicates that people may be eating away at them just to get by.

“But the worry is what happens when people’s savings run out? There is the possibility that they could develop debt problems if they continue to spend more than they earn.”

Consumers continue to ease debt management problems is a post from: Delta Debt Management & IVA Advice

IVA and Debt Management for businesses

Atiq — Wed, 02 Dec 2009 12:19:15 +0000

A major part of businessmen have hard times in the years of setting up their own business. They are trying too many things to find a secure position from that the further progress is possible in a competitive business world. That is why so often entrepreneurs borrow money and take advantages of a good credit, but not all of them can cope with a fact that finally comes the time of paying back. A person should take a loan and a credit that are suitable for that business pattern which a person has accepted. So in case you know that your business will need some time to be out of the debts, then you have to do your best to find the suitable repayment time correspondingly. It also often occurs that within a period of the loan application some businessmen do inappropriate actions and in this case they are much more interested in securing the loan quickly. Such people usually are gotten caught in the immense confusion of the debts.

However there exists help that can be provided by numerous profit making and non-profit debt management companies all over the world. One has to make a well informed conclusion which is based on one’s personal situation. There are plenty of aspects to take into account when you are selecting the right people to have a deal with in the debt management business. The very first and notable factor appears to be the range of the services offered by a debt management company. There are a lot of sides of the matter which a debt management company should take care for you. The representatives of a debt management company have to be able to negotiate without mediators with the client’s credit lenders in order to get a control over a situation.

When you get your credit lenders on bay, you gain enough time to concentrate back on the business of your own in order to gain the so necessary income and to bring money back to pay your loan to the credit lenders. At times either the situation can turn out to be even worse than you expected or the business pattern which you have chosen is defected and thus fail to bring any profit. These are the very situations when a person needs to turn to the debt management companies to have a chance to cope with the bankruptcy and with the liquidation of a business.

So what you should pay attention to when choosing a debt management company is that it is better to avoid the companies which claim to eliminate instantly all your debts, it is simply to good to be true. The reliable and respectable debt management companies cooperate with you in order to help in rebuilding your credit and to teach you how to manage the debts.

IVA and Debt Management for businesses is a post from: Delta Debt Management & IVA Advice