Consumer Debt Help & Info

 

Problems with Debts? One Affordable Monthly Payment More Information

 

Immediate Action to Secure You and Your Family From Creditors

When you have many debts the world can seem very intimidating. The feeling of loneliness and helplessness can be over-powering. Professional debt counsellors and creditors know that the likely-hood of a debtor (the person in debt) being able to sort out their debts without professional help is slim. Creditors want you to offer a fair payment plan or contact a debt counsellor in order to arrange a payment plan that is acceptable to both sides.

If you feel that you cannot deal with payment negotiation and (most importantly) you are committed to resolving your debts there is an answer.

In the UK, the Consumer Credit Counselling Service (CCCS) "is a registered charity providing free, independent counselling to help you solve your debt problems, avoid bankruptcy and learn to handle money".

The CCCS Code of Ethics:
"The Consumer Credit Counselling Service is dedicated to providing confidential, professional counselling and money management assistance to financially distressed families and individuals regardless of race, creed, colour, sex, social position or financial status and to fostering education on consumer money management and the wise use of credit."

To talk to a counsellor or to make an appointment with a local counsellor contact the CCCS on FREEPHONE 0800 138 1111.

The CCCS will give you advice (if that is sufficient for your needs) or they will take control over your debts, arrange a payment plan with your creditors, and deal with all administration. The amount you pay your creditors will be agreed with you (this figure will be fair to both parties). You will pay a weekly/monthly amount to CCCS who will then distribute the funds amongst your creditors.

If you maintain the arranged payments, and you do not enter into any further credit you will be able to put this experience behind you.

Is Working from Home the Answer to Debt?

There are many reasons for looking to work from home. This article deals with one of the more contentious reasons: DEBT.

When faced with mounting debts and increased pressure from creditors, the usual 'knee jerk' reaction is to look for ways to earn extra money, quickly, and with as little disruption to our life as possible. It is, therefore, not surprising that home working is one of the first options we think of (the most popular option is to borrow money, more of this later).

Let's look at the rational behind choosing home working as an answer to debts:

Thought: I can start earning from home working immediately

Fact: Unless you are working for yourself in a business that has customers with orders (and cash) you will not earn in the short term

Thought: I will work twice as hard as others who work from home and earn more money

Fact: Working twice as hard is a standard requirement of everyone who works from home

Thought: I will find a home working job that requires no upfront costs from me

Fact: Setting up your own home working business does not need to be costly, but will have a degree of cost, and It is not only the less reputable home working employers that will want upfront fees/costs

What the above three examples are saying is that if you are looking to work to pay off debts it is more reliable and practical to work (for instance) in a supermarket stacking shelves: be that day or night time.

If you are determined to work from home as an answer to debts, you must know in advance: what work you have to do, what you will earn, when you will be paid and how you can earn more money. If you are not satisfied with the answers you should look elsewhere. Having debts, stress and a punishing home job is not expected of you or the rest of us.

When we have debts we are extremely vulnerable to 'get rich quick' opportunities. Naturally, we want to believe all that we hear or see. Some would say, 'the bigger the opportunity, the bigger your loss will be'. The important action to take if you are involved in such a venture is to get out immediately you suspect a scam (and add another one of life's experience to your list).

The above notes have been designed to give you an objective view about home working as an answer to debts. The majority of current home workers have settled into a routine and are aware of the financial implications, and benefits, that home working brings them.
 

Who Should You Pay First

Everyone you owe a debt to will want you to pay off their debt first. Whatever your creditors (the one’s you owe the money to) want you to do, and whatever you would like to do, you must prioritise your debts. You must do this for three reasons.

          1. To maintain the basics of life: electricity, gas, water, a ‘roof over your

               head’ etc.

          2. To avoid legal action, in particular, criminal legal action: an unpaid    

              TV licence and/or court fine can (and will) lead to imprisonment.

          3. To avoid removal of your chattels (removable possessions) by

              County Court bailiff or High Court sheriff.

Your priority debts are:

Gas, Electric and

Water Rates

Rent Arrears

Maintenance (ex-partner and children)

Court Fines

Vat, Income Tax, National Insurance

Television Licence

          Hire Purchase (goods on hire purchase cannot be repossessed without a court order if you have paid over a third of     the total amount payable under the HP Agreement. If you have paid at least fifty percent, and there are no arrears (or you pay the arrears) you can hand back the goods without further payment. The goods must be in a ‘reasonable’ condition.

All other debts will have an equal rating. It is not uncommon for debtors (the one who owes the debt) to maintain full payment of a non-preferential debt in an attempt to keep open a line of credit, or pay a threatening creditor ‘or else’. If you do pay a non-preferential creditor in such a way you will not receive the support of your other creditors (which is crucial), and bankruptcy could follow. We will deal with an Income and Expenditure Statement in another article however the following is a brief outline concerning priority debts.

There are two ways to approach the payment of these debts: