Tag Archives: IVA

Credit Card Debt – How to make the debt affordable

Credit Card Debt – The Pro’s

Credit Card Debt affects anyone who owns a card, Once you use the Credit card your account obtains a balance you need to payback. A credit card’s ability to spread the expense of a transaction is one of its main benefits. Goods or services may be bought and not paid for immediately. Which can further increase the financial stability of a customer! This is in contrast to a debit card, where the funds must be in the bank account of a person for a transaction to take place.

Credit cards also provide better security for customers than other payment types. If the products or services cost more than £100. Paying on a credit card for that portion of the transaction means it is protected by Section 75 of the Consumer Credit Act. This law specifies that a credit card company shall be jointly responsible with a merchant in the event of a payment issue. Examples of this may be defective goods or failure to produce a service as defined.

Earnings Arrestments

Credit Card Debt – The Cons

Because credit cards are a form of debt, they can pose risks unless effectively managed. If the balance is not fully repaid each month, interest charges shall be levied. Costs of interest can be much higher than other forms of debt such as a mortgage or personal loans. That may mean that repaying the original balance becomes more difficult as interest costs increase over time.

In some scenarios, credit cards are also of limited usefulness, for example, if an individual requires cash. Interest on cash withdrawals is usually charged using a credit card. There may also be a fee payable on using a credit card cash machine.

Some credit cards also charge extra fees for overseas use. A non-sterling transaction fee is common throughout the credit card industry and applies to any payment other than sterling in a currency. Travel credit cards often have lower international usage fees but may have high-interest rates relative to non-travel credit cards.

Credit Card Debt

How do people get in debt with Credit Cards?

How much of your money is yours and how much you are contributing against your debt has a lot to do with how your debt first got there. We accumulate debt for many reasons. Such as paying for unexpected crises or unemployment. But most often the debt is a product of poor spending habits. Since spending money is costing you money until you spend cash.

Struggling to pay back your debt? We can help!

IF you are struggling to pay back debts to any creditors FindaDebtExpert can help! With our IVA debt solutions, we can help you pay you debts back at an affordable rate. Whilst in an IVA you will be writing a percentage of your debt off. The amount you write off will depend on your situation.

The Pros of an IVA

  • Once your IVA is agreed by all creditors it is officially a legally binding agreement.
  • You’ll come to an agreement with your creditors about what you can afford to pay each month, meaning you have got a single monthly payment – and it may even be a one-off payment.
  • Not only will you be debt-free within 60 days, but an IVA can take as little as 4 weeks to set up.
  • No upfront fees with Milton & Stirling Ltd allows you to save money and you’ll enjoy a faster set-up time.
  • Your monthly payment will always be within your monthly budget.
  • Flexibility. An IVA is a fixed agreement – but if things change out-with your control you can come to a new agreement with Milton & Stirling Ltd and your creditors.
  • Sticking to the terms of an agreement with your creditors means they can never take legal action against you – you’re protected from court proceedings.
  • An IVA is a private agreement between yourself and your creditors meaning there’ll never be publicity in the newspapers or on social media – unlike bankruptcy.
  • Speaking of bankruptcy – an IVA is acceptable in some jobs, whereas with bankruptcy is not.
  • An IVA could safeguard your property.
  • You WON’T be blacklisted forever. Simply complete the arrangement you have in place with your creditors and can borrow money again. With Milton & Stirling Ltd you can count on your credit rating to improve in time.

The Cons of an IVA

  • An IVA WILL affect your credit rating, and usually, for up to a year after the 60-day completion.
  • Your monthly payments need to be at least £80 per month – and you will only qualify if your total unsecured debt is more than £6,000.
  • If you don’t stay on top of your monthly repayments – you could be bankrupted.
  • Your job or career prospects could be at risk as an IVA is a type of insolvency.
  • You may have to remortgage your house – if you’re successful at re-mortgaging you may still have higher interest rates to pay.
  • If your IVA is denied, creditors may backdate interest on your debts.
  • Really high-value assets may have to be downgraded (such as a second home or a luxury car).
  • As an IVA is a form of insolvency it is listed on the Insolvency Service website – which can be accessed by anyone.
  • Not all debts can be included in an IVA, such as fines imposed by the court.

If you think an IVA is for you contact us today on our live chat located on our home page. You can contact us during office hours on 0161 694 2650. (office hours 09:00 – 20:00 Monday – Thursday, 09:00 – 17:00 Fridays) OR Email us to get started – info@findadebtexpert.co.uk

helping hand depicting how a debt management plan can help people

Council Tax Discount and arrears

Did you know you could be entitled to council tax discount?

Yes, That is correct. A Council Tax discount is a thing. However, it’s only available to residents of England and Wales. The percentage of the discount varies depending on the situation and circumstances. Council Tax discounts are only available to those regions but only specific people. Want to find out if you’re eligible for a discount? Click Here.

How do I check my Council Tax Discount eligibility?

You can check your eligibility on gov.uk website or click here

Once you click the link you will be prompted to enter your postcode of residence. Once you have submitted your postcode you will be redirected to your local council’s website. You will then find a quick link to apply for a discount on your council tax.

council tax image of money depicting the advantages and disadvantages of a MAP

If you’re not eligible

Don’t match the criteria for a council tax discount? we may be able to help. If you suffer from any financial difficulties you should contact us for immediate help. Findadebtexpert.co.uk have multiple debt solutions if you have over £5,000 you may be eligible to write off up to 75% of your debts which includes council tax.

I can’t pay my Council Tax what should I do?

Firstly, If you know in advanced that you’ll not be able to afford your upcoming council tax payment you should contact your local council immediately. Don’t wait for them to contact you. You should contact your council straight away. Ask to speak to someone in the Council Tax office and inform them of the situation. Ask your council if they’ll let you pay your Council Tax in smaller amounts.

Can I ignore my Council Tax?

NO. It’s important to not ignore Council Tax arrears. In addition to the fact that you accrue it without borrowing, you have to remember every year you get a new bill, so it will continue to grow.

In the end, this can mean that you will be subject 
to debt collection proceedings undertaken by Sheriff Officers or made bankrupt. 
Wherever you own your own house, 
this might mean you might lose it

 

what happens if I choose to ignore it?

Well if you choose to ignore your council tax arrears you can be subjected to an earnings arrestment, Which means your employer is forced to comply with deducting money from your wages to pay the council tax arrears and any other debt you may have. We have a dedicated blog post for an earnings arrestment here. It is mandatory for your employer to correspond with the arrestment as it is instructed by a CCJ (county court judgement).

Contact us

We understand talking about your debts is almost as difficult as paying them. Thats why we have a dedicated team who are qualified and waiting for your contact. From Monday – Thursday 09:00 – 20:00 (09:00-17:00 Fridays) you can contact them on our live chat here. Those hours are also tied in with our advisors who can assist you via phone @ 0161 694 2650. Email us info@findadebtexpert.co.uk and we will be happy to help.

Earnings Arrestments

Earnings Arrestments Help – Find A Debt Expert

Earnings Arrestments

What is an Earnings Arrestment?

Earnings Arrestments also knowing as Wage arrestment means that a percentage of the debtor’s earnings will be taken by their employer to settle the outstanding debt balance. Before an Earnings arrestment can happen a County Court Judgement will have been granted by the courts. An attachment of earnings can only occur if a debtor has missed one or more payments on a County Court Judgement. If the debtor has fallen behind with a payment then the court can use an attachment of earnings to recover the debt for the creditor.

attachment of earnings order - earnings arrestment

attachment of earnings order

Does the Employer have to follow with the order?

Yes, it is the legal duty of the employer(s). Employers must deduct however much the courts instruct them too from the debtor’s wages. The employer can also deduct a £1.00 administration fee.  A fee can occur every time money is taken from a debtor’s salary. Attachment of earnings can be a cause of awkwardness for many employees once the employer becomes involved in the wages arrestment situation.

Will My Job be at Risk?

It is highly unlikely for your current job to be at risk. However, your employer may mark this as a disciplinary or not look at you as a candidate for further higher-ranked positions within the company. If an Earnings Arrestment does put your job at risk, you can ask your council to put a repayment plan in place. If they agree to this, you can apply to the Sheriff Court for a suspended attachment of earnings order.

How Can I Keep Track of what I need to pay?

Your employer will keep a record of how much is left to clear your bill. They should stop making deductions once the amount is paid in full.

Your wage slip should also tell you how much has been taken for the attachment of earnings order. Remember that your employer can take an extra £1 for each deduction for their administration costs.

We recommend that you keep wage slips as your record of the amount paid. If you need more information about the balance left to pay, please speak to your employer.

What if My Employment Status Changes?

If you change your job, the earning arrestment stops. You will have no earnings for your previous employer to deduct your wages from.

However, your previous employer will most likely be instructed to provide the details of your new employment to the sheriff officers. Your new place of employment will be found in a variety of ways, From your Tax code to your National Insurance number.

The wage arrestment, therefore, can follow you

How Can I Prevent an Earnings Arrestment?

Seeking Debt advice would be the best way to avoid your earnings being arrested. Click Here for FREE financial advice. Find A Debt Expert can provide you with the legal steps you can take. Give us a call on 0161 694 2650 or email us at info@findadebtexpert.co.uk

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Find a debt expert provide a free service for our clients, however, we may receive a referral fee from your solutions provider.

 

 

 

Can you get an IVA during the current national crisis?

Yes! Is the simple answer.

Covid-19 had swept through the UK & resulted in a UK lockdown imposed on 23rd March this year, which resulted to changes & uncertainty around income for many for the foreseeable future.

An Individual Voluntary Arrangement (IVA) can offer various different benefits when struggling with debt, however it is important to receive specific debt advice from a specialist as the IVA can offer consequences should it not be right for you.

What if I have been furloughed by my employer?

Like many you may have received a furlough notification from your employer during the current Covid-19 pandemic & seeing your payslips have furlough pay after the UK government announced the job retention scheme that goes as far back as 1st March this year. You may be getting your normal pay or 80% depending on route employers’ route, if it was the latter this would cause a reduction on your income then in turn would cause financial strain had things been tight already.

Either way we can proceed to assist you with your debts whilst on Furlough, the main thing our advisors would like to see is confirmation from your employer that your job is secure for the end of the lockdown to ensure you are receiving advice with future planning involved. If you enter an IVA, you may be able to look at step payment to ensure your payments are affordable until full pay is resumed.

What if I am Self Employed?

Entering an IVA with Find a Debt Expert will always include specific advice to you & we will always take in your current situation & use future planning to make any plan achievable. If you are lucky enough not to be effected by Covid-19’s current economic downturn & your income is as normal as before then of course it will be easier to have an IVA in place, if you self-employed & have applied for Universal Credit as your income has been effected then it is possible to receive an IVA, we just want to be sure it is a plan to suit.

If you are currently receiving Universal Credit it may be best to have ready as must income history you can for the last three years such as tax returns to show roughly what you would expect your income to return to after the new normal is in place.

We always offer free advice via the telephone at Find a Debt Expert so should you have any questions please get in touch.