Just starting to hit those debt problems?

Acting sooner rather than later is the key to taking
control of your debts particularly if you are running
out of money before the end of every month and
creditors are missing payments that are due to them.
There are 6 steps to managing your debts which are
available by e-mailing me. In conjunction with the
6 steps to debt help and advice there may be some
other options:
• The Ebay phenomena means that you can easily
   sell unwanted items
• Get a part-time job to suit your lifestyle
• Get a lodger
• Reduce your expenditure
• Ask your boss for a raise

Sell unwanted items
Everybody has stuff they don't need or use. Ebay is a
great way to sell those items and make a little more
money. Will a few of those items be enough to get
you back on top of your bills? Don't like internet selling?
Well get yourself off to the local car boot sale.

Get that part-time job
Realistically work out if you can take on an extra job.
Maybe you are in a boring office job and have always
wanted to try something different. Why not go and
apply for some work at the local hospice, factory or
bar? It'll get you out of the home, spending less,
earning more and increasing your circle of friends
and contacts too.

Get a lodger
OK so you'd prefer your own space but the extra
money that a lodger could provide can be considerable.
Take time to find suitable people to share your home
with. One friend I have, even ended up finding his wife
when she came to stay for 2 years!

Reduce your expenditure
It should go without saying that you must cut out all
luxuries, but see whether you can go further. It doesn't
hurt to stay in an extra night or two every week.
Renting a video costs about the same as one drink
down the local and you can choose who gets to spend
time in your company. There are other ways to cut
your costs but do be ruthless. If this resolves your
debt trouble then that's all for the better.

Ask your boss for a raise
Well, if there's a debt issue looming then it's
definitely time to bite the bullet and ask for
that raise. Get clear and concise examples
of events and milestones that you've achieved
since your last review. Explain, in detail, what
you will achieve over the coming months and
also try to negotiate the sort of raise you want
for the coming work appraisals should you meet
those targets. Work towards those targets and
use any extra income to reduce your debt.
Do face up to financial problems as soon as
possible in order to start resolving them. Whatever
problems you are facing, try to be positive, as there
may still be solutions. There are plenty of sources
of expert advice.

Ed Pearson is a Debt Dr. Debt Dr offer expert debt
help and advice to individuals and small businesses.
Ed can be contacted on 0845 123 4000 or in confidence
on 07970 659266.
www.debtDr.co.uk 'prescribing life without debt'
To find out more about Ed try, http://www.ecademy.com/account.php?id=41788

Are you 30 days from payments disaster?

In a recent survey by Prudential, more than one
third of the 3 million people living in the UK who
are worried about their debt problems are less
than 30 days from financial disaster.
To make matters worse, most people have no
protection in place to provide some income
should they have an accident, sickness or
unemployment. Further still, many people
will have protection that is inadequate for
their requirements.
Couple these facts with another little gem.
A third of people living in the UK have little
or no savings either.
So with no, or inadequate protection, in place
and no savings a sizeable proportion of the UK
are living less than 30 days away from financial disaster.

What steps to take in those 30 days if the worst happens
Well if you have some form of Accident, Sickness,
Unemployment (ASU) insurance then do put your
claim in quickly. Where you have no, or inadequate,
insurance cover then it's time to get work quickly if
possible or call in favours from lenders, family
and friends.
Do work your budget out. Understand your income
and expenditure, even if your income is zero,
calculate your monthly expenditure accurately.
Ask creditors for payment holidays especially if you
have been a good customer that has met all your
payments.
Perhaps look to downgrade your car to free up some
cash over the short term.
Be aware that only a few missed payments on your
mortgage can lead to repossession. If the reason you
are out of work is longer term then perhaps look to
sell your house and rent for a while using the equity
from your house sale to fund a roof over your head.

If repossession looks likely
You will know that your house is about to be
repossessed as there will be informal and formal
threats from your lender that repossession proceedings
will be taking place.
Houses do get repossessed. Even if you don't attend
court hearings the process will still keep moving onward.
Before you get to court, your lender will be busily
compiling details of letters sent, conversations held,
and notes of what they believe was said in the run
up to the court case. They will use this evidence in
court to get your home from you so be prepared.
Keep records of the letters received, make notes
of all calls incoming and outgoing between you
and your lender for use at a later date.
The good news is that courts do not like to issue
repossession orders. The bad news is that they
must uphold the law and if you are not prepared
or have not shown a willingness to come to payment
arrangements then the judge will have no alternative
but to grant the repossession.

Steps to try and prevent a court hearing
To try and prevent a court appearance, do be polite
and honest at all times whilst working toward a more
positive dialogue. Look to offer reduced but affordable
payments if possible. If you miss an agreed payment
at this stage it will only serve to exacerbate problems
and may even be taken as a sign to proceed to court
so do not over promise.
Consider asking for a mortgage payment holiday but
do get any agreement of this nature in writing and do
check how the lender intends to reflect this holiday on
your credit file.
If you are on a repayment mortgage then consider
asking if you can go onto interest only payments for
a while. Do get proper financial advice before you
consider this course of action as there are
consequences to this step. It is common for lenders
to charge a small administration fee to organise this
change.

If you end up in a repossession hearing
If you do end up in a repossession hearing but the
debt issue has passed then do gather as much
evidence as possible including new job offers and
details of your current or expected income expenditure.
If you convince the judge that your situation has
improved then they will be more likely to suspend
or set aside a repossession order. It is very common
that as part of that hearing you will be expected to
agree to increased mortgage payments to reduce
and eliminate any arrears. This is why it is important
to have a realistic monthly income and expenditure
budget to hand.

If your debt issue has not been resolved and you
are facing repossession then do get professional help.
In fact, regardless of where you are currently do get
proper debt advice from a professional. A short article
such as this cannot convey all the options available.
Talk to someone who understands what options are
available to help under these circumstances.
Ask your debt professional to explain the 6 options
that resolve personal debt issues. Get the debt help
and advice you need to get back on your feet once more.

Ed Pearson is a Debt Dr. Debt Dr is a company that
helps individuals and small businesses through debt
issues. He can be contacted at: ep@debtDr.co.uk.
This article does not constitute financial advice.
Any action you wish to take should only be done so
after considering your own set of circumstances with
an appropriately qualified professional.
www.debtDr.co.uk 'Prescribing life without debt'
To find out more about Ed try, http://www.ecademy.com/account.php?id=41788

Bankruptcy UK and dealing with the debt collector

I recently sat with a client who was experiencing
debt issues in their life. Together we had considered
the 6 solutions for getting of debt in the UK. The client
had already remarked how grateful for they were for
my debt help and advice and the decision was taken to
go bankrupt. Bankruptcy in the UK is not a step taken
lightly and we had discussed the process in detail.

It was going to take about 4 months to gather all the
information together and the question of how best to
deal with the incessant debt collectors' telephone calls
and doorstep visits was brought up again.
I advised,

Be polite
Even when they tell you, as they do from time-to-time,
to 'grow up', 'get a proper job', 'get another loan to
pay me'. The debt collector doesn't see what a wonderful
person you are. They are not looking for the human
element. They have missed the fact that you never used
that money without the intention of paying it back.
The debt collector just labels you as 'the person who
owes the money'. The history, the good intentions, and
the trust you built over many years with your creditor
often count for nothing at this point.

Avoid fear and distrust
It's natural for you to feel fear. It's natural for the debt
collector to feel distrust. The situation where distrust and
miscommunication has culminated in a debt collector
calling is a sometimes long and often unhelpful track.
They just want their money but you cannot just materialise
something you do not immediately have available. You can
politely point out your efforts for it to fall on deaf ears. Look
beyond their barbed words and remain calm. Do advice
them that you are planning to declare yourself bankrupt
and explain what details we are collating.

Look beyond their process
Most debt collection agencies just follow a process, a
series of scripts, a series of computer screens, a series of
processes to effect a result. Look beyond that process. You
are an individual with a real debt issue. Encourage the debt
collector to understand the root issues of your predicament
and why bankruptcy is the most sensible option for you.

Remember, there are laws designed to protect you
Which of these debt collection practices is illegal:
5 phone calls a day from the same debt collection outfit;
knocking on the neighbours door to ask if you are home
as a debt needs to be paid;
dropping a blank card through your door with the words
'call Fred on 1234 566789';
parking at your house with a van and the words 'debt
collector' painted on the side;
telling you that goods will be removed from your house
to pay for debts?
The answer is all of them. And there are laws to stop this
happening. Now not all debt collectors understand or even
know the laws that affect them during the course of their
work. Even when they are advised to go and check for
themselves and not just take their in-house training as
the complete answer to all questions debt collection related
they will assume they still have the law on their side
regardless of how they pursue the debt. Take time to educate
the debt collector and your friends and family and stop
these things happening to other people.

Some advice
Take time to help yourself and others. Develop your
listening skills. Remember at all times that you are a human
being who deserves to be treated politely and with respect.
Be polite and courteous at all times, take proper advice and
act upon it, avoid fear and mistrust, educate others, remain
calm and remember that you are just in their process but
still have the ability to achieve a better platform for a
mature conversation.

This article does not constitute regulated advice. Please
remember that any action regarding financial advice should
always be taken only after considering the specifics of your
own situation.

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