Money Debt & Credit News

Food vouchers in the UK will soon replace cash loans for poor Brits

Wed, 03 Apr 2013 15:38:00 +0100

The poorest people in Britain tend to turn to loans in order to help them afford to get by. However, the central government has decided to eliminate its current Social Fund and replace it with welfare assisted schemes.

Food vouchers in the UK will soon replace cash loans for poor Brits
Not everyone is thrilled with these new proposed changes. Campaigners and charities across the country are worried that replacing loans with food vouchers will push people further into financial distress. This could lead to more crime. However, advocates are claiming that the vouchers are needed in order to stop misuse of the current emergency cash loans. It will also save them money too.

There aren’t just food vouchers available, there are also vouchers for other things a family might need such as diapers. They come in the form of payment cards and they can be monitored and even blocked if they aren’t being used correctly. This is to stop them being used for gambling, alcohol and cigarettes.

The Social Fund currently offers emergency cash loans of around £50. There were also larger cash grants available of £1,000 which were given to ex-prisoners, those with a disability and victims of domestic violence. This helped them to buy whatever they needed to live independently.

The changes come after the central government made plans to cut welfare payments. Unfortunately many people do abuse the emergency cash scheme. This is what has caused the changes to be put into place. Debt charities are now bracing themselves for a busy period once the vouchers are well and truly in place.

If you are struggling with your debts, it would be a good idea to look into the different debt management methods available. There are many different debt management methods that could help you to eliminate your financial troubles.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Debt Management: Finding an Option that Really Works

Wed, 27 Mar 2013 14:09:00 +0100

When you’re struggling with debt, life can be absolutely miserable. Many people have no idea where to turn when they find themselves in financial difficulties. If you’re looking for a solution to your debt worries then the good news is there’s plenty of options open to you.

Finance Management Plans
These are particularly popular and are really easy to set up. They basically take into consideration the debt that you owe and your monthly income. Your incomings and outgoings will be looked into and from that a realistic plan will be created of how much you can afford to pay back each month. This is then negotiated with your creditors. If they are happy, the financial management plan is set up and you pay the debt management company the money owed on time each month.

You don’t have to deal with your creditors at all and in many cases the interest is also frozen to give you a good chance of paying the debt off earlier.

IVAs
IVAs are designed to help those who have an unsecured debt totalling more than £13,000. Paying whatever you can afford to pay each month, your debt will usually be written off after 5 years. As soon as the creditor accepts the offer of repayment, interest will be frozen and a legally binding agreement will be created. This will be supervised by a licensed Insolvency Practitioner.

Debt Consolidation Loan
A debt consolidation loan is useful if you have more than one creditor. You take out a large lump sum that will cover all of your current debts. Then you pay them off and you’re left with one, easy to manage monthly repayment. It’s still leaving you in debt, but hopefully a more manageable one!
These are just 3 options available to you. Why not contact us to see which debt management method is best suited to your circumstances?

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Good news for working families as new initiative provides more help with cost of childcare

Mon, 25 Mar 2013 11:33:00 +0100

Working families will be happier with the government thanks to a new initiative set to help with the cost of childcare. There are thousands of families who are struggling to just stay on top of things and pay for food and utility bills, never mind childcare. Now the government has aimed to make it easier for working families by providing them with additional help to cover the cost of their childcare expenses.

Understanding the new scheme
The new tax free childcare scheme will provide help worth up to £1,200 for each child. This means that an average family who have two children both under the ages of 12, could get up to £2,400 a year.

It is set to give parents help to fund around 20% of their overall childcare costs. The maximum amount given per child per year could be £6,000. While it isn’t set to kick start until the autumn of 2015, it is still great news for working families. Initially it will be available to 2.5 million families and children under the age of 5 will be eligible. It is said that the scheme will start to build up so that it also includes children under the age of 12 eventually too.

The Prime Minister, David Cameron, spoke out at a nursery in Wandsworth. He stated:

“Too many families are finding it tough to pay for child care and have often had to even stop working the hours they’d like to. This initiative will give a boost to families who find it really hard to budget their finances”

While this scheme is set to improve the lives of working families, Labour aren’t particular fans of it. They claim that the government is acting too slowly to help those who are struggling. This is a point many families may agree with when they learn it won’t be rolled out until 2015.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

New budget gives lending bid boost in 2013

Fri, 22 Mar 2013 11:09:00 +0100

In a bid to boost lending in 2013, the new budget has given the Bank of England new lending powers. This is a tactic that is being put in place thanks to the quite aggressive tactics that the US Federal Reserve is currently following. The new wider set of reserves given to the Bank of England, are set to really boost the UK’s economy.

Sir Mervyn King and George Osborne both agreed to overhaul the bank’s usual policy for targeted inflation which would have run for 20 years. This was done in a duel remit which supported employment and growth. City investors have approved of this move and said they would give all of the power needed to insert cheap funds into the economy.

The economy has still been struggling since 2008 after the banking crash occurred. The only people unlikely to see many changes through the monetary committee are businesses and mortgage holders. The monetary committee sets the interest rate and decides exactly how much money is placed into the economy.

Osborne is pushing ahead and encouraging the members of the committee to stick to the new aggressive scheme even though there have been temporary spikes in inflation. New policies he wants to introduce include buying mortgages away from the banks. This would enable the banks to focus more on lending and loans instead.

Perhaps one of the largest changes will be that the unemployment level will need to be lower than a set target before there are any rise in interest rates. In the US, Ben Bernanke, the Fed boss, has promised to keep the interest rates at 0.25% until the unemployment rate manages to drop below 6.5%.

These are just some of the changes in the new 2013 budget that will help the economy and try to control Britain’s debt crisis. If you are currently struggling with debt and need help now then contact us today.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Personal injury law firm trouble equals trouble for economy

Thu, 21 Mar 2013 12:05:00 +0100

It’s been estimated that around a fifth of personal injury law firms currently operating within the North East of England are thinking of closing down. This is due to the fact that it is soon set to become harder for people to claim compensation for any accidents they may suffer. The market is suffering dramatically and for many people, they don’t realise just how bad this could potentially be for the whole of the UK’s economy.

Study shows decline in sector will cause close downs
It was actually a Liverpool Law Firm known as ‘O’Connor’s, which carried out the research. It is the weaker firms that will suffer the most. This means that over the next year, if closures continue, around 100,000 jobs will go.

The reason this isn’t yet affecting the media is because it has only just started affecting bigger, well known-firms. Once the larger law firms are hit by the crisis, hundreds of thousands of more jobs are set to go.

Reason for lack of compassion
The reason the public isn’t 100% backing personal injury firms are because they often see them as money chasers. They are simply out to make as much money as possible out of other people’s misfortunes. Or they try to make up injuries to get money for their clients, such as over-exaggerated whiplash injuries.

Unfortunately, whether you sympathise with personal injury lawyers or not, if there are further closures throughout the year it will have an effect on each and every one of us at some point. The UK’s economy still hasn’t recovered from its last crisis.

If you are struggling with the debt crisis then there are things you can do to help yourself. There are many solutions available like a financial management plan or an IVA and you can contact us today to find out more about which one is right for you.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Thinking of changing over your IVA? Surveys results say don’t go to your bank!

Mon, 18 Mar 2013 12:18:00 +0100

In order to save money and improve your finances, you often get told to move things around and to compare your alternatives. This includes everything from utility bills to food shopping and car insurance to IVAs. If you’re thinking of switching over your IVA, then the first thing you may be thinking of doing is heading to your bank for advice. If that’s the case then stop and think very carefully! What you may not realise is that your bank doesn’t always have your best interests at heart.

Survey shows shocking statistics
A Which? Survey has shown that only 28 out of 180 bank advisers knew how to transfers IVAs. The banks that did the worst on this test were Yorkshire and HSBC. An RBS employee answered the question: How would you transfer your old cash ISA to a new account? With the following answer:

“You’d withdraw all of your funds, close down the account and simply transfer it to a new provider”

Now if you were to use this method, yes you’d have a new ISA account. However, you would lose your tax-free status. This could actually lose you money. What should actually happen is the new provider should sort out the transfer for you.

This is just one way in which banks are misinforming their customers regarding IVA transfers. Many advisors are telling consumers that there’s no limit to how much cash is being put into an account. However, currently the limit stands at £5,640 every year. This is set to rise to £5,760 on April 6th 2013.

You need to be careful who you can trust when it comes to IVA advice. Instead of turning to your bank, it would be a good idea to look elsewhere at other advice centres. If you’d like any help on debt management and financial planning then feel free to contact Money Debt & Credit today and we’ll help you to find the right solution to suit your needs.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Consumers take on high unsecured loans due to common misconception

Thu, 14 Mar 2013 12:14:00 +0100

Consumers are taking out higher loans than they need to because they aren’t considering all of their options. This news comes after figures from the Office of National Statistics found the north west of the UK has experienced the biggest rise in unsecured debts. It seems that people are less likely to consider secured loans these days because of the remortgage market seizing up. It’s a common belief that consumers can’t take out secured loans for consolidation or home improvement purposes. This means that better deal secured loans are going under the radar.

Credit cards and short term loans are not the only option
Consumers need to realise that credit cards and short term loans such as payday loans, are not their only option. They can be very useful in some circumstances, but there may be cheaper alternatives available.

Secured loans should never be taken out lightly. You are using your home, car or other assets to get the lower rates. However, providing you know that you can pay the loan back on time, they can be a much cheaper alternative to unsecured loans. It could even be a much cheaper alternative to re-mortgage your home to get the money you need.

The key is to compare all of your options. That way you can make an informed decision, taking into account the risks and advantages of each choice. It would help consumers to talk through their options with a professional. The Citizens Advice Bureau is a great place to turn to if you’re trying to figure out your best option.

Help for those in debt
If you need the money for consolidation purposes then it is also a good idea to consider oter options too. While consolidating your debts will make them easier to manage, you will still ultimately be in debt. Why not take a look at our various debt management solutions to see all of the options you have available to you?

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Peer to peer lending – can it really lead you to a debt free life?

Tue, 12 Mar 2013 11:30:00 +0100

When you’re trying to solve your debt problems, there are many options available. One popular option that you might be thinking of opting for is peer to peer lending. Instead of lending from banks and other creditors, you can choose to borrow money from people just like you. The question is what are the benefits of doing this and can you trust peer to peer lending?

Trusting the community
When you take out a peer to peer loan, it takes a lot of trust on both parts. The person lending you the money is trusting that you will pay it back. You also don’t have as much trust in the person you are borrowing from as you would from a bank. However, there are many benefits that come with peer to peer lending. These include:

• There’s a greater understanding between parties
• The interest paid back is lower
• It can help you to become debt free

The fact that you are borrowing from an actual person and not a bank means that there’s more understanding there. The person is lending you their money because they want to help. This means that they care about you more than a bank would.

Ultimately the main advantage is low interest rates. Banks and other creditors are well-known for charging really high interest rates on loans. However, with peer to peer lending you could benefit from rates as low as 7%. You will still be given a credit check and the rates will vary depending upon that. However, the rates will still be lower than a bank.

Of course you should always think carefully before you take out any form of loan. Peer to peer loans can really help some people, but for others it could make their debt problems worse. If you’re in trouble with your debts then we may be able to help. Contact us today to find out more about our debt management services available.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Payday loan companies given 12 weeks to change their ways

Fri, 08 Mar 2013 11:26:00 +0100

The Office of Fair Trading has ordered some of the UKs biggest names in the payday loan industry to change their ways in just 12 weeks. If they don’t, the OFT claims it will revoke their trading licenses.

This tough approach has come after months of warnings and media attention regarding how UK payday loan companies have been operating. Thousands of people have become straddled with a debt that they just cannot afford to repay after taking out these short term loans. Drawn in by advantages such as no credit checks and instant cash, many people simply have no idea what they are getting themselves into.

Evidence shows irresponsible lending policies
It has been known for quite some time that payday loan companies have been using some rather underhand tactics with their approach to lending and regaining the money they have loaned. However, evidence has continued to stack up against some of the top companies in the UK and that is why the OFT is now really cracking down on its rules.

Another recent announcement made by the OFT is that it plans to consult with the Competition Commission have them deal with the payday loan industry. This would cause some pretty major changes in the industry for more than 50 of the biggest payday loan companies.

The Chief Executive of the OFT, Clive Maxwell, states:

“Payday lenders are earning around half of their revenue from rolled over deals, rather than one off loans. This is where unexpected costs mount up.”

Like many experts, he says it’s high time that something was done to stop payday lenders operating in this way.

There is no doubt that this new 12 week rule will have many payday lenders rushing to change their way. However, only time will tell just how many survive these new, tougher regulations.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net

Many borrowers face up to 80 different payday loans

Wed, 06 Mar 2013 14:17:00 +0100

The number of calls that the National Debtline has received lately has seen a massive 93% increase. It took on around 20,000 calls asking for help with payday loans in 2012. This has literally doubled since 2009. Perhaps the most shocking statistic however, is the fact that some callers have taken out more than 80 different payment loans.

Top Payday loan lenders cut the most slack
It’s been the top brand payday loan lenders that have cut the most slack in the payday loan industry lately. Sites such as Wonga, Quick Quid and Payday UK have caused a lot of controversy after offering loans that come with a massive 4000% interest rate. They are accused of targeting consumers who have no other place to turn to for their financial troubles. The high interest rates means that one missed payment could see the consumer slide quickly down into even further debt troubles.

Action is being taken
Just after Christmas, action was taken to prevent some payday loan companies from operating illegally. The OFT has so far suspended many licenses from payday loan companies. These companies were found to have broken the rules several times in regards to payday lending regulations. This has at least shown in some way that the Office of Fair Trading is taking this type of borrowing very seriously. However, according to some experts a lot more has to be done.

It is the scale of the debts that has really shocked the Debtline. 80 different payday loans is a lot to take on and to manage. When you need to take out that many loans, you know you have a serious problem. One missed payment could lead to thousands upon thousands of pounds in debt.

While suspending some licenses for Payday loans is bound to have a positive impact. There’s certainly no denying that more needs to be done to tackle the problem. If you’re struggling to pay back a payday loan or if you find that you constantly need to borrow one then Money Debt & Credit can help.

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Notes to editors:

Money Debt and Credit is one of the UK's fastest growing financial solution companies.
The company was founded in 2006 on the belief that every client has the right to appropriate financial advice. Since then we've gone from strength to strength and have helped thousands of people with a variety of financial solutions.
We offer a range of services including Financial Management Plans, IVAs, Loans, Mortgages, Full & Final Settlements, Bankruptcy, Investments and Pensions.
Specialties: IVAs, Financial Management Plans, Loans, Mortgages, Trust Deeds, Full and Final Settlements, Bankruptcy

For more information or debt advice contact:

Money Debt and Credit
45 Clarendon Road, Watford, WD17 1SZ
Tel. 0800 16 999 46

Image courtesy of FreeDigitalPhotos.net