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Cover your back with Pre-Pack

February 24th, 2012

Admin LKF

Pre-Pack Administration is the process of restructuring a business to protect the assets and employees of insolvent companies.

A pre-pack administration procedure is a very popular tool used by many firms. They sell their assets and business before their company is forced into a formal insolvency service such as liquidation.

Companies can sometimes incur sudden hefty debts which can seriously affect cash flow. This could be from something as simple as an unpaid tax bill or an unpaid invoice from a main customer.

The pre-pack administration service is one solution that can resolve issues without the need to ask or be forced into directions by creditors.

The advantages of Pre-Pack Administration

It means you keep a degree of control throughout the whole procedure and very often you can even buy back the assets giving total protection.
Pre pack administration is a very powerful restructuring solution of selling a business on to a third party that rids debts but does not interrupt business. The new firm can continue to trade without the burden of arrears by the previous company.
It means valuable members of staff can be retained, connections with suppliers can be saved ensuring future supply and customers can be kept all by servicing a pre pack administration.
You can keep a business going allowing great continuity. The new company can flourish, jobs will be safeguarded and the firm can be reset without the burden of debts.

You can find out more about Pre-Pack Administration online and receive free help and advice on how you can make the most of this process.

Tags: Administration Service, Arrears, Assets, Back Pack, Cash Flow, Continuity, Creditors, Customer Service, Debts, Formal Insolvency, Insolvency Service, Insolvent Companies, Jobs, Liquidation Companies, Selling A Business, Third Party, Unpaid Invoice

Debt Management Plan – Frequently Asked Questions

September 9th, 2011

Admin IQY

If you find yourself in the vicious cycle of taking on more debt in order to cover the cost of your ever increasing borrowings one thing to remember is that you are not alone. Another is that there are a number of solutions to spiralling debt problems whether it’s a debt consolidation loan, an IVA or even a Debt Management Plan.

The Debt Management Plan is a popular solution to problems such as these because it can allow some borrowers to bring their expenditure and income back into line without any further borrowing. But while this is an attractive proposition, it is certainly not for everybody. Could a Debt Management Plan be the right plan of action for you?

Read our helpful selection of frequently asked questions to find out.

What is Debt Management?

An increase in debt can lead to a failure to pay what you owe. If this failure happens, the lender who is owed money can appeal to the county court in order to reclaim the money owed. Alternatively, if the borrower is proven unable to afford the payment, the court can order for the repayment structure to be altered, based on the borrower’s ability to pay.

Your debts will be listed in full and in order of priority, starting with outstanding debts which could result in the loss of a home, an essential utility or item such as a car for commuting to work.

The amount agreed as a revised repayment is calculated based upon the amount needed for each individual repayment as well as taking into account a reasonable amount of money for essential purchases and living costs. The court then issues a repayment order based upon these factors. The court will also freeze the interest being generated, so that the money owed no longer continues to increase.

Can a Debt Management Plan only be set up by county court?

It is possible to devise your own Debt Management Plan and the Citizen’s Advice Bureau and National Debtline are on hand to provide advice on how to do so. While this is an option it is generally the case that banks and card companies will tend to look more favourably upon applications made on your behalf by professional Debt Management agent.

What are Professional Debt Management agencies?

These companies take a fee in exchange for developing, managing and administering your Debt Managing Plan. Once your creditors have agreed to your new reduced repayment plan, your agent will administer these payments on your behalf. You pay the new monthly debt repayment to them and they distribute it appropriately amongst all of your lenders.

Is Professional Debt Management worth the expense?

This depends entirely on you. If you trust yourself to negotiate repayments and then ensure that they are managed successfully you are free to do so. It is generally accepted that receiving professional, experienced and proven assistance can be a major help and relieve a great deal of the stress caused by debt management.

Tags: Advice Bureau, Amount Of Money, Attractive Proposition, Borrowers, Borrowings, Citizen, Debt Consolidation Loan, Debt Loan, Debt Management Plan, Debt Problems, Failure, Iva, Lead, National Debtline, Outstanding Debts, Priority, Vicious Cycle

Do we have enough Mortgage Protection Insurance?

September 8th, 2011

The Web Clinic

The Government needs to be honest about Mortgage Protection Insurance, argues Tom Baigrie.

Managing Director of Lifesearch, Tom insists that the gap between the level of mortgage protection insurance that people need and what they actually have is down to the government’s dishonesty.

“The primary reason for the protection gap is the lie that the welfare state provides an adequate safety net for all the very least fortunate in society. If the Government held up its hands and said, “Don’t be fooled, the state will not look after you such as to maintain any normal average standard of living”, citizens might take more personal responsibility.”

“I have never heard anyone argue with the often stated truth that arranging a proper protection package must surely come first in anyone’s affairs.

“So that makes it plain wrong that those who run financial services, whether from the Treasury, FSA, ABI, or your own business’s board, normally only ever include protection as an afterthought.

“Being spared FSA interest is a boon, of course, and my purpose here is not to encourage further regulation or the lazy spread of RDR into protection, but rather to challenge those that rule as to whether they feel any responsibility for the vast gap between the level of income protection and life insurance people should have and the amount they do have?

“And if the FSA focused on the greatest scandal in financial services – the £2.3 trillion protection gap – rather than picking at all the far less important failures, then perhaps adviser business leaders would demand their advisers addressed protection properly with each client before moving on to the sexier areas of financial planning.

But expecting that corrective sequence is silly. The Government could never start the cycle of truth and the FSA is not paid to expose Treasury failings. So the solution needs to be found by us market practitioners. “

Tags: Abi, Adequate Safety, Adviser, Afterthought, Boon, Business Leaders, Dishonesty, Fsa, Gap, Life Insurance, Lifesearch, Managing Director, Market Practitioners, Mortgage Protection Insurance, Own Business, Personal Responsibility, Rdr, S Board, Safety Net, Welfare State

The Advantages of Using Debt Management Companies

August 8th, 2011

admin

There are a number of ways to deal with debt problems such as IVAs, debt consolidation and debt management plans to name a few. If things get really bad, then you can also consider bankruptcy but this should be something that you only do as a last resort.

If you are struggling to cope with debt then you need to sort things out sooner rather than later so that you don’t end up in a situation where you are facing bankruptcy and the possible loss of your assets. Debt management is becoming very popular these days due to the number of people who are trying to cope with mountains of debt. There are more and more debt management companies such as DFH popping up all the time in response to the need for debt advice and help. So many people do not know how to cope with their debt but a debt management company can offer the perfect solution. There are a number of benefits of dealing with a debt management company and the following are just a few:

A debt management company can deal directly with your creditors so that you don’t have to.
Debt management companies will talk to you about your finances and will come up with the best solution to help you to get out of the situation you are in.
When you enlist the services of a debt management company, you will only have to pay one monthly sum which should be lower than what you were paying before. You will pay this amount directly to the debt management company and they will take care of paying your creditors for you.
Debt management companies have experience dealing with creditors and debt collectors and they are the best people to try and negotiate the best terms for you. A lot of debt management companies will be able to get your interest payments reduced or frozen so that it will be easier for you to become debt free.
Once you have sorted out your debt management you will be able to get on with living your life without the pressure of coping with your bills each month and without having to worry about phone calls or threatening letters from creditors and debt collectors.

As you can see there are a number of great reasons for choosing to use the services of a debt management company. Never ignore the problem because it will not go away if you do this. In fact things will just get worse if you stick your head in the sand. If your creditors do not know that you are having difficulties paying, then they will just assume that you are choosing not to pay and this could get you in worse trouble. Get help as soon as you can because this is the best way to get yourself out of the financial situation that you are in and enable you to get back to living your life.

Tags: Assets Management, Bankruptcy, Best Solution, Consolidation Debt, Dealing With Creditors, Debt Advice, Debt Collectors, Debt Consolidation, Debt Free, Debt Help, Debt Management Companies, Debt Management Company, Debt Problems, Interest Payments, Last Resort, Lot, Many People, Mountains, Perfect Solution

Debt Relief Order Options

August 5th, 2011

Admin 5

With so many financial hardships being experienced these days it’s not surprising that people struggle with finding solutions. Many people who are now experiencing financial hardship have never experienced a late payment. With reduced salaries, layoffs and company downsizing people face financial demise. Some people have debt that is relatively small but severely delinquent with no end in sight. These are the same people who consider credit worthiness important and frown on bankruptcy.

A possible alternative may be a debt relief order. When considering a debt relief order you should consider just how much debt you have. The amount should be relatively small so that drastic measures such as bankruptcy can be avoided. Usually when the person owns no property and has a limited or reduced income a debt relief order may be a wise consideration. The debt relief order is a twelve month plan. It allows the debtor twelve months of hassle free relief from any creditors named in the debt relief order. There is a requirement that the person be advised thru a debt counseling agency.

In addition a debt relief order requires that residency or business affiliation within the previous past 3 years have been in England or Whales. Because the purpose of a debt relief order to assist those people who experience delinquency due to financial hardship the expectation is that should their situation improve a repayment plan should be instituted. Any false or misleading behavior to obtain a debt relief order is subject to civil and criminal sanctions. A person that applies for a debt relief order should not have any previous or current bankruptcy orders in effect.

Also a relief order will only be considered if the person hasn’t had a previous order within the last six years. When considering this as a reasonable alternative to low balance debt considers all your options. Make sure that you ask questions and decide to institute the plan only because it makes sense as a viable debt solution option. Once in the plan make every effort to maintain the program as the financial counselor instructs so that no actions can be seen as fraudulent.

Tags: Business Affiliation, Company Downsizing, Credit Worthiness, Creditors, Criminal Sanctions, Debt Counseling, Debt Relief, Delinquency, Demise, Drastic Measures, Expectation, Financial Hardship, Financial Hardships, Finding Solutions, Layoffs, Repayment Plan, Salaries, Twelve Months, Whales, Wise Consideration

How to use a debt consolidation calculator

July 18th, 2011

Admin 5

Anyone trying to get out of debt should consider debt consolidation as one option to plough through debt rapidly. If you are interested in consolidating your debt, a debt consolidation calculator may prove to be a useful tool. In this guide, you will learn the ins and outs of how to make one of these calculators work for you and produce accurate, helpful results.

What is a Debt Consolidation Calculator?
A debt consolidation calculator is an online tool which evaluates the amount of debt you can repay on a monthly basis through debt consolidation along with a loan. The calculator evaluates the payment based on three different areas: the value of your loan, the length of your loan and how high or low the interest rate on the loan is.

How it works
Essentially, a debt consolidation calculator is very easy to use. These are some of the items you may have to enter into such a calculator.
• Enter the name of your debt—typically, there is a space to type in the kind of debt you have. For example, if you had a Visa credit card you owed on, you would type “Visa.” If you owed student loan debt, you could type, “student loans.”
• Amount Owed—next, you type the amount you owe on each individual debt.
• Interest Rate—enter the interest rate for each debt you owe into the debt consolidation calculator.
• Monthly Payments—how much do you pay on a monthly basis for each debt?

Once you press “Calculate,” you should see a box on the debt consolidation calculator that tells you the total amount of debt you owe, what the total interest rate is, total amount of monthly payments, and how much interest you have each month. It also tells you how long it will take to pay off your total debt. After this, there should be another calculator where you enter your previous totals; it calculates your new monthly payments and how much you could have accumulated at differing interest rates.

Now that you possess the knowledge to use a debt consolidation calculator, you should take advantage of one if you need to. Doing this may help you to estimate whether this would be a worthwhile debt payoff method.

Tags: Calculator Online, Calculators, Consolidating Debt, Consolidating Your Debt, Consolidation Debt, Consolidation Loan, Debt Calculator, Debt Consolidation Calculator, Debt Interest, Ins And Outs, Interest Rate, Interest Rates, Knowledge, Loan Calculator, Online Tool, Plough, Student Loan Debt, Student Loans, Visa Card, Visa Credit Card

what is an IVA

July 5th, 2011

Admin 5

An IVA is an Individual Voluntary Arrangement. It’s used by consumers to gain control of their debts. This program is beneficial to consumers that have a debt over £15,000, and owe two creditors or more. IVA is used to write off 60-70 percent of unsecured debts. This is different from bankruptcy that writes off all of the consumers debts. What is an IVA? IVA Agreement allows consumers to pay off there debt at a rate that is manageable over a five year period. Any current debt is frozen as a part of the legal binding agreement between the creditor and debtor. What is an IVA? The consumer assets are protected like cars and homes but some equity may have to be release, which exists in consumer’s property.

If the consumer is still asking what is an IVA? An Insolvency Practitioner will assist you in this matter. These professionals are licensed and charge a fee for their services. What is an IVA? As a part of the consumer’s payment, these service fees will be added to that expense. An advantage of this program is that it doesn’t disqualify professional services such as the police force; this is different from bankruptcy. Using this program will prevent the consumer from borrowing money during the duration of the plan. This program could affect the consumer’s credit rating in the future. What is an IVA? If the consumer feels that this program can help them tackle their debt, they may seek help from an experienced Debt Management Firm.

This firm will identify a suitable solution for their clients. What is an IVA? This arrangement is a formal agreement between the creditor and the debtor. After you have explained your situation a repayment plan will be negotiated. An application for this arrangement will be needed and it is sent to the court for an Interim Order. Once this is in place, no creditor will take legal action against the debtor. A Creditor meeting will be held and the debtor should attend. For this arrangement to be approved the creditors will need to vote. If one creditor votes for the arrangement then the IVA is approved. However, if one creditor request 25% of your debt then the meeting will be rescheduled. What is an IVA? It is an arrangement between creditor and debtor to make payments over a five-year period.

Tags: Assets, Bankruptcy, Borrowing Money, Cars, Consumers, Credit Rating, Creditor, Creditors, Debt Management Firm, Debtor, Duration, Individual Voluntary Arrangement, Insolvency Practitioner, Iva, Legal Binding Agreement, Police Force, Professional Services, Repayment Plan, Suitable Solution, Unsecured Debts

Would A 0% Apr Interest Help You With Debt Consolidation?

November 8th, 2010

admin

Would A 0% Apr Interest Help You With Debt Consolidation?

One thing that never helps you to pay off that debt is the high interest on some of those credit cards. In fact, when you actually calculate it, you find that it will take a long time just because of the interest. Interest payments eat up your money stretching out your indebtedness. A new credit card, however, with balance transfer options and 0% APR interest, may be a quick solution to your needs for debt consolidation.

A balance transfer credit card can be a great help in reducing your debt quickly. The thing that makes it take so long to pay down that debt is the interest payments, and the late fees. This is especially true if your credit cards are high interest – which is often the case. You can take much of your current credit card debt, and consolidate it to one card – with 0% APR interest.

These credit cards can give you up to 15 months to make interest-free payments on amounts you transfer to them. By consolidating your credit card debt to one of these, you could greatly reduce your debt – and maybe even pay it all off in that time. The goal with this, of course, is not to max out those other credit cards now that you have transferred your debt to the new card.

In order to find the balance transfer credit card you need, you will first have to make sure your credit score is good. This means that you need to look over your credit report and check it for errors, and make corrections as needed. It will take a month or two, though, for these changes to show up on your credit report. Another important thing is to reduce extra debt beforehand if you can. Having too many credit cards will also hurt your credit score, if you do not have enough income to offset the ratio.

Look over the introductory offer to make sure how much time is connected to the balance transfers. There may be more than one different time period in connection with the special offer. Some credit cards will actually give you the 0% APR for the life of the transfer that is tremendous if you can get it. It will save you a lot of money. Also, see if there is any fee for this kind of transaction – some cards may charge up to 4%, and others will do it for free.

Once you have the credit card you need for your debt consolidation, it is important to make sure you pay this bill on time. Some companies will actually take away the benefits of your card and put you into a high interest category (possibly 29%) if you are late with just one payment, or do not pay the minimum amount. Since this would immediately cause you to lose the benefits of your debt consolidation on this credit card, make sure you pay on time.

Debt consolidation with 0% APR interest is a great opportunity to get a fresh start with your finances. Look around for a card that gives you the most benefits and has a low interest rate after the introductory offer expires. The benefits do vary and you want a good one – but you will have to shop around for it. Be sure to read the small print, too.

Tags: 15 Months, Balance Transfer Credit Card, Balance Transfers, Credit Card Debt, Credit Cards, Credit Report, Credit Score, Debt Consolidation, Different Time, Free Payments, High Interest, Indebtedness, Interest Interest, Interest Payments, Late Fees, Long Time, Quick Solution, Special Offer, Time Period, Transfer Options

Working Multiple Jobs To Make Ends Meet? How A Low

November 6th, 2010

admin

Working Multiple Jobs To Make Ends Meet? How A Low Interest Debt Consolidation Loan Can Help

If you are struggling to make debt payments and are working more than one job just to pay the bills, a low interest debt consolidation loan could free up more money for other things. The stress of working multiple jobs and still not having enough money to meet all your needs, is compounded by the stress of constantly facing bankruptcy because of credit card and other debt. This sort of stress is very bad for your health and lowers your quality of life significantly.

After a while of fighting to survive, creatively trying to solve your problems only to face them again the next month and living on the edge, you can begin to feel punch drunk and are less and less able to do what is necessary to simply stay on an even keel. Under these circumstances, debt can worsen and your ability to cope with it can diminish. A low interest debt consolidation loan can reduce your long term debt costs as well as the amount you have to budget monthly for debt repayment.

The biggest problem you will face if you are working multiple jobs is how to find the time to locate the best low interest debt consolidation loan for your needs. There are professionals who can do this for you. If you cant see them in their office you can find an online service to help you. Just make sure you tell them everything of importance so they can find the best product for you.

Once you have combined all your debts into one low interest debt consolidation loan, it is important to cancel all your credit cards so the option of increasing debt doesnt exist. If you pay off the balances and leave the cards open for emergencies, chances are you will fall back on them and your debt will begin to increase again. Dont let that happen. To avoid future problems you will also need to create a budget that works for your family and live within it. Make a commitment to remain debt free.

Living within a strict budget is not as stressful as living beyond your means. Once you adjust your life to your income and enjoy the peace that gives you, you will see opportunities to increase your income that you were blind to before. Stress and worry have a way of blinding us to the good because we are always focused on the problems. A low interest debt consolidation loan will open the door to new financial possibilities and to a much better life.

Tags: Bankruptcy, Circumstances, Credit Card, Credit Cards, Debt Consolidation Loan, Debt Free Living, Debt Payments, Debt Repayment, Debts, Emergencies, Enough Money, Even Keel, Interest Debt, Job Pay, Jobs, Living On The Edge, Punch Drunk, Quality Of Life, Stress, Term Debt

Unplanned Medical Bills – How A Personal Debt Consolidation Loan

November 5th, 2010

admin

Unplanned Medical Bills – How A Personal Debt Consolidation Loan Can Help Your Finances

A personal debt consolidation loan can be a very effective way to deal with unexpected medical expenses, especially if you are juggling multiple credit cards and struggling to find the payments. By consolidating debt, you can increase your monthly disposable income to cover extra monthly medical expenses or you can increase the amount you are borrowing to cover major medical expenses while keeping your repayments much the same.

A personal debt consolidation loan will have a lower interest rate than most credit cards or consumer credit and will save you a lot of money over the term of the loan, while immediately improving your quality of life and allowing you to meet your obligations.

When shopping for the right personal debt consolidation loan to meet your needs, look for the lowest interest rate and lowest fees available to you. Read the loan contract carefully to see if the lender can increase interest rates and to identify any late payment charges or penalties. This can be a bit confusing for a lay-person. It may well be worth your while to find a professional financial counselor who specializes in debt counseling to help you find the right product. This person can also help you work out a budget to cover all your living costs and include strategies to improve your long term financial position.

Sudden medical expenses can put a lot of pressure on a family. A personal debt consolidation loan can not only alleviate the pressure, it can improve the immediate and long term financial prospects of the family. However, it is important to cancel your credit cards and any lines of credit after they are paid out, to avoid the temptation of using them again and forcing your debt levels back up. Under pressure, most of us will use the credit option and be optimistic that we can pay it off later. We need to remember that we have already tried that, and it didnt work.

Sudden, unexpected medical expenses are usually the result of misfortune in the family either through an accident or an illness. A personal debt consolidation loan can take a lot of stress off the family and the finances as it tries to deal with often difficult circumstances. By using this strategy, you can have some breathing space to focus on your family. Even bill paying is easier, with multiple accounts being replaced with one lower monthly payment.

A personal debt consolidation loan will take the financial pressure off you so that you can focus on what is most important your family!

Tags: Consolidating Debt, Consumer Credit, Credit Cards, Credit Option, Debt Consolidation Loan, Debt Counseling, Debt Levels, Disposable Income, Financial Counselor, Financial Position, Financial Prospects, Lay Person, Loan Contract, Lowest Interest Rate, Medical Bills, Medical Expenses, Payment Charges, Personal Debt Consolidation, Personal Debt Consolidation Loan, Repayments

Cover your back with Pre-Pack

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