Is a debt any different to a bill? Can the same debt solutions be used for both debts and bills? Most people make a distinction between debt which they have on credit cards or loan agreements and unpaid bills (like legal or medical expenses).
Debt, Bill – Is There a Difference?
In the eyes of the law (as far as debt solutions are concerned) they are the same. If you owe money to people that are not credit providers then they may not be used to dealing with debt solutions whereas for a credit company this is part of their everyday job.
If you are planning to enter an Individual Voluntary Arrangement the unpaid bills will be included in your list of creditors and the person that you owe the money to will be able to vote at the creditors meeting the same as all the other creditors.
If you enter bankruptcy proceedings then all your unpaid bills will be included in your bankruptcy. The only exception to this will be if you have unpaid fines
Tags: debt bill
When you have a serious debt problem you have a choice in how you resolve it. You can either try and tackle the problem completely on your own (not recommended) or get free help from a charity or sign up for a charge debt solution with a reputable debt management company.
Charge Debt Solutions – Why Use Them?
If you can get your debt advice free then why would you want to use the services of a company that are going to charge you money? The answer is in the type of debt management solution that the company can offer and their expertise/reputation with the creditors. In the UK there are two good sources of free advice if you have debt problems: The Citizens Advice Bureau and the Consumer Credit Counseling Service. These can both offer good general advice on debt and can help negotiate with your creditors to reduce payments/freeze penalties and interest etc. The CAB can also help you if you are considering bankruptcy. However neither can offer an Individual Voluntary Arrangements since these require the provider to be a Licenced Insolvency Practioner.
A reputable debt management company like The Payplan Partnership can provide a “one-stop shop” for your debt problems and are able to help you with whatever solution you decide on.
Tags: charge debt solution, Debt Advice
If your life is consumed by money worry then the least helpful thing that you can do is ignore it and hope that it will go away. You need to take steps to sort it out now as this will stop the money worry getting any worse and will give you back control over the situation.
Your Money Worry – What Is It?
Are you worried about the amount of debt you have, your low income, or not being able to save for the future? The steps that you need to take will depend a lot on the answers to these questions. One of the first things to do is to write down all of your income and expenditure, any debts, and any savings or investments that you may have. This will form the basis of your decision making process.
Money Worry 1 – Debt
If you have a lot of of debt and worry about being able to repay it then you should seek the help of the many debt-related charities to help you resolve the problem (e.g. the Citizens Advice Bureau or the Consumer Credit Counseling Service in the UK).
Money Worry 2 – Income
If you have lost your job or are on low income then check that you are receiving all of the state benefits that you are entitled to – again the Citizens Advice Bureau should be able to help you. Register with some internet job sites to see if there are better paying jobs that you could apply for. Investigate some training to up your skills level and become qualified for higher paying jobs.
Money Worry 3 – Investing For the Future
If you don’t have enough money to invest in a pension or savings then start off by looking at the budget you have prepared and identify areas where savings could be made, e.g. reducing television subscription deals or shipping at discount retailers. You will be surprised how much your monthly budget can be reduced without significantly changing your lifestyle.
Tags: money worry
