The top 3 sites for debt advice

1. http://www.cccs.co.uk/ The Consumer Credit Counselling Service (CCCS) are a registered charity and as well as providing useful, practical help for debtors, are also responsible for many of the studies and reports on debt that feed into mainstream media news articles. The CCCS’s free and anonymous Debt Remedy online counselling service is an invaluable resource. There is no need to get involved with debt management firms who will be seeking to profit from your situation.

2. http://www.consumeractiongroup.co.uk/forum/content.php The Consumer Action Group (CAG) forum is possibly the best place on web to find information on debt and other consumer issues, as well as discussing particular problems with banks and debt chasers. Whether you are considering straightforward default, or are perhaps thinking of other, more unorthodox solutions to avoid repayment, you will find other regular punters on here with first-hand experience and ready to share their knowledge.

3. http://www.creditaction.org.uk/ The national money education charity. Credit Action are responsible for many of the vital debt statistics that reveal the true nature of personal indebtedness in the UK and they work closely with the CCCS.

Is a bank account for bankrupts for you?

Entering bankruptcy will have a major impact on your finances. In one respect it can be an opportunity to make a ‘fresh start’, as many debts could be written off. In another respect, bankruptcy remains ‘with’ a person long after the debt is gone.

A bankruptcy will remain on the individual’s credit file for six years, and they might be asked if they’ve ever been made bankrupt (if they apply for a mortgage, for example). So it can make future financial matters – including opening a new bank account – more difficult. In other words, people with a history of bankruptcy may find their choices limited when they’re doing something like choosing a bank account.

Most bank accounts require you to pass a credit check, and even basic bank accounts may not be open to ‘undischarged’ bankrupts (those still going through bankruptcy).

Bankruptcy bank accounts for undischarged bankrupts

Bankruptcy bank accounts are designed for those in the process of bankruptcy or in the period after, when it can be difficult to open an account.

thinkbanking could help if bankruptcy has made it difficult to find a bank account. Its account is open to people before, during and after bankruptcy and doesn’t require a credit check – it’s open to anyone who’s a UK resident and aged 18 or over.

Bankruptcy bank accounts for bad credit

The benefits of an account that doesn’t require a credit check are obvious for someone who’s a bankrupt, whether discharged or undischarged.

However, bankruptcy bank accounts aren’t only for bankrupts. Different kinds of credit problems in the past could have an effect on your ability to open a bank account with a credit check. For example, if your bank closes your account, or if a bad credit history is stopping you from opening an account now, you could be eligible for a bankruptcy bank account.

Simply having a bank account can really help you manage your money more effectively – even if you’ve been made bankrupt, you could still benefit from features such as Direct Debits, standing orders and a debit card, but without the credit check.

___________________________________________________________________________________________________

How to find the right debt management company to write off your debts?

Debt is a disturbing and overpowering problem in today’s financial milieu. In UK, there are myriad debt solutions like IVA, administration orders and even bankruptcy. All these measures are formal routes. For example if you consider an IVA or Individual Voluntary Agreement, only 75% of your debts are paid off. Taking these facts into account, Debt Management is considered as one of the most effective ways to reduce debt without court involvement. However, in the recent years, there has been a steep rise in the number of fake entities posing as debt management firms. They can easily rip you of your money and worsen your debt problem. So it is important to ensure that you are in safe hands once you have decided to get into a DMP (Debt Management Plan). Here are some important tips that can help you to take the right decision when it comes to choosing debt management companies in UK.

The simplest way to get the right company is a reference check. People like yourself who have been through the debt ordeal can help you get to the right place. Collect information from people who have used debt management in the past and have come out debt free. You can also shop around for the best deal. Do not take a decision in haste, no matter how bad the situation is. In UK you can get in touch with Citizens Advice Bureau (CAB) for help.

Make sure to select a firm that has accreditation from The Office of Fair Trading in UK. You can check if the firm abides by the OFT guidelines. For more information visit OFT’s official website at http://www.oft.gov.uk/.

Debt management service has some associated fees. There may be some hidden fees that are not visible in the beginning. Make sure that you are well aware of such hidden fees before you sign up for a particular debt management plan. Choose the plan in such a way that you are not burdened with a huge fee.

Avoid debt management companies in UK that charge up front fees for advising. You must pay them only when you have agreed upon a plan. Usually, these debt management plans will cost only 15% of your payments. For more debt management help, consult Citizens Advice Bureau at http://www.citizensadvice.org.uk/ .

Choose a debt management company that writes off your debt faster. Some firms often suggest a plan that permits smaller payments thus prolonging the time period. So try to make the maximum payments you can afford. The more you linger with debts, the stronger it grips you.

Once you have decided upon a debt management plan, make sure that you avail the right solution for yourself. The company must give you a suitable plan after reviewing your debt-situation. The plan will be based on your monthly income statement and will take your budget under control.

In UK many fraudulent debt management companies have been tracked down by The Office of Fair Trading for deceiving debtors. Do not get carried away by companies that promise to remove your credit report. Remember your credit report can never be removed from credit file. However, your credit report can certainly be improved with a little conscious effort. Start living frugally and stay financially fit throughout your life.

Article by Patricia Smith at Yes Debt Free

Advertisements