General Debt Questions

Do you need quality debt help?

Don't expose yourself to the threat of receiving bad or inaccurate debt advice.

You can protect yourself from receiving inappropriate debt advice by learning the safeguards to look out for and by following these simple industry wide guidelines. Read more.

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How to deal with creditor calls

One of the most unpleasant aspects of being in debt is the prospects of receiving creditor phone calls, demanding payments you can't afford to make.

This article offers advice and guidance as to how you to handle pressure calls from creditors. Read more.

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What does 'Joint and Several Liability' mean?

When two people jointly signed a credit agreement, they both formally agree to be fully liable for the joint debt. This means that the creditor can pursue each signatory separately for the full outstanding debt in the event that one signatory is unable or unwilling to make the scheduled repayments.

By entering into an IVA you effectively remove your personal liability to a joint and several agreement but this doesn't protect the other signatories. They remain liable for the full outstanding balance and must take steps to address their personal liability for themselves. Read more.

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Surviving debt

By taking the correct course of action at the appropriate time you will be able to minimise the potential damage a severe debt problem might cause.

That's why it's so important to seek advice as soon as you feel you're losing control of your financial position. With the correct advice many potential problems can be managed successfully or even avoided altogether. The secret to retaining control lies in understanding your options and taking early action, rather than allowing your circumstances to deteriorate to a point where your creditors take the decisions for you. Read more.

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Some simple steps to eliminate your debts

Being strategic with your debt repayments can significantly reduce the time it will take to repay your debts. By taking just a few simple steps you'll be able to ensure you're getting the best possible value for money on your repayment rates.

This article will give you some guidance on how to manage your repayment strategy and, therefore, benefit from a shortened repayment term. Read more.

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What is an 'Unsecured' debt?

The term 'unsecured debt' relates to credit agreements that do not provide the lender with any security or guarantee in the event that the loan agreement falls into default.

In the event of a default, the creditor can only force repayment of an unsecured debt by taking legal action against the debtor. An unsecured debt is the type of debt that an IVA is able to help with. Read more.

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What is a 'Secured' debt?

A secured debt is the name given to a loan agreement that provides the lender with security over a tangible asset owned by the debtor.

Secured debts include mortgages, secured loans taken against a property and hire purchase agreements. Each of these types of secured debt provide the lender with the option of seeking repossession in the event of a default of the agreement. Read more.

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IVA Counselling

Ensuring you receive the very best level of IVA counselling is crucial if you're thinking of entering into an IVA.

This article will tell you what to look for from your advisers and how to protect yourself from the threat of being subjected to bad IVA advice. Read more.

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What is a 'Hire Purchase' agreement?

Hire Purchase agreements are a type of finance agreement, normally used to facilitate the purchase of high value assets such as vehicles, caravans and boats. A Hire Purchase agreement enables the lender to retain ownership of the purchased goods whilst the debtor is making repayments to the loan.

Full ownership of the purchased goods is transferred to the debtor on the date of the final payment. This type of agreement provides the lender with security. They retain powers of repossession that, in the event of a default of the agreement, entitles them to recover the goods and sell them. If the sale of the goods is insufficient to clear the outstanding debt the lender can pursue the debtor for the shortfall. Read more.

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What is a 'Second Charge'?

A second charge is the name given to a loan secured against a property used to provide security to the lender.

As the name suggests, a second charge is second only to a first charge, which is the name given to the secured debt with the highest priority. This would typically be a mortgage. On the sale of the property, the funds generated by the sale are used, in priority order, to settle the first charge and then the second charge. Only then will any remaining funds be passed to the seller. Read more.

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What is a 'Default Notice'?

A Default Notice is a legal notification of a breach to the repayment terms of an unsecured credit agreement.

A Default Notice must be issued by a creditor before they are able to take enforcement action against a debtor. It must stipulate the nature of the default and the remedial action required to rectify the default. Read more.

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What is an 'Attachment of Earnings Order'?

An Attachment of Earnings Order instructs an employer to make payments to a court, using funds deducted directly from an employees wages, thus enforcing payments to a judgement debt that the employee has failed to maintain.

An Attachment of Earnings Order is used primarily when a debtor has continually failed to maintain their obligations under a judgement, but it can be suspended if it is considered the order might be harmful to the employment prospects of the debtor. Read more.

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What is an 'Income Payment Agreement (IPA)'?

An Income Payment Agreement is the name given to the agreement between a bankrupt and the Official Receiver, or Trustee in bankruptcy, where monthly payments are to be made by the bankrupt, usually for a period of 36 months.

The size of the payments are calculated as to what is deemed affordable for the bankrupt, once their personal expenditure has been deducted from their income. If necessary, the Trustee can apply to the court for an Income Payment Order (IPO), which legally compels the bankrupt to make the payments, if an amicable agreement can't be reached.Read more.

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Top 10 Tips On Surviving Debt

Living within the cycle of debt is a frustrating experience. Each month comes to its end and you need to turn to your credit cards to bridge the gap in your Read more.

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