14 Jul 11 Are you eligible for debt relief order?
A debt relief order is an order which people in the UK, who are not able to pay their debts can apply for. These orders are granted through the Insolvency Service, and will cost consumers less money than filing for bankruptcy. A debt relief order will usually remain open for one year; during that time period, no creditors which you owe money to are able to file any actions against you for non-payment. Once the year is over, the debtor will be relieved of all debts which are listed in the debt relief order.
So, who can apply for a debt relief order, what are the requirements, and how will it help you get out of debt? To be eligible to apply for a debt relief order, an individual must not own anything of value or have savings amounting to more than £300, and if they own a vehicle, it must be valued at below £1000. To apply for a debt relief order, it is required to go through an authorised adviser who sees whether or not you are eligible for the order. It costs £90 which can be paid in installment payments over a period of six months.
So, the basic requirements to apply for the order are: the individual must have qualyfing debts of £15,000 or less; they must have spare income of £50 or less after paying all monthly bills; they must have lived (or have proeprty) for the past three years in England or Wales; and, their assets (and any saving accounts) must be £300 or less. The kinds of debts which are considered qualifying include: credit card debts, loans, rent, utilities, phone bills, hire purchase or conditional sales agreements, or buy now-pay later agreements also qualify.
So if you are eligible for a debt relief order, have hired the authorised adviser, and paid the £90 for the order, the one year period which you are not liable to your creditors for non-payments will start up. This is a great opportunity if you are facing financial hardships, and contemplating filing for bankruptcy. It is a cheaper process, and will not harm your personal credit rating in the way that a bankruptcy proceeding will damage your credit.
24 Jun 11 Consumer debt is growing in the UK
Over the past few years consumer debt in the UK has been on the rise. It is a concerning trend and people need to be aware of it. 
Although it is a well known fact, many people are ignoring the facts about consumer debt and continue to spend and look for ways to borrow money. Credit cards and unsecured loans are still growing in numbers at an alarming rate. Consumer debt is on the rise.
Today it is easier then ever to get a loan. Years past most people thought a long time before they ask for a loan application. The lender was concerned with consumer debt. There were many hoops to jump through and the process could be difficult. The good part about all of that is most people had to stop and think before they applied. Now it is often possible to apply online or even in the checkout at the store.
Applying for loans from the comfort of the living room is popular with people in the UK. They enjoying sitting back and surfing the net to find a loan that will meet their needs. They never think twice about consumer debt. It is easy to do and the approval can be done quickly. Often they forget to read the fine print that states the terms and interest rates. Many times these loans have hidden fees. It can be dangerous to have more loans and credit cards then a person can easily pay back.
More and more people are getting in trouble financially. Consumer debt has skyrocketed. It is a material world and people are seeking to find happiness in buying more things. Consumers are willing to risk budgets and smart buying to get what they want. Somehow, this trend needs to stop in the UK. It is not healthy and will cause people to have to be on repayment programs or worst yet, bankruptcy. It is never to late to start living on a reasonable budget. Saving is still a valuable option and people today need to be reeducated about ways to live within their means.
14 Aug 09 Learn how debt collection works
The way debt collection begins is when a creditor authorizes a debt collection agency or service to begin the collection process. This normally happens when a debtor falls behind on payments for ninety days or more. There are many laws associated with debt collection and can apply differently to individual states, but debt collection agencies are expected to follow these laws and never threaten or harass debtors.
Part of the debt collection process is to notify the borrower or debtor, in writing, exactly how much money they oweand this is usually followed by phone calls throughout the day. At the beginning the calls may be only once a day, but as time goes by the number can escalate. Debt collectors need to insure they document every call they make and any contact with a debtor to protect themselves while insuring the rights of the debtors are not being violated.
Debt collection has been on the rise in recent times due to the economic hardships that many have faced. Some large conglomerates have collection departments within their organizations, but small businesses tend to farm this serve out to a professional debt collection agencyleaving them more time to focus on their regular business operations.
Even as many debt collection agencies have been successful and follow all federal and local laws, there have been many
allegations and criticisms against collections agencies which do not. The Federal Trade Commission gives debtors the right to avoid being contacted by phone from collection agencies; if that is what they desire. They must put this request in writing and mail it to the appropriate parties.
For many small businesses, collection agencies have helped them collect accounts that would have otherwise been lost. Small business is the area most hurt by consumers who fail to make their payments on time. Many small businesses are not in the position to endure multiple uncollectible accounts; this is where debt collecting has been so beneficial. These services, although highly controversial, are here to stay and will probably help to collect on past due accounts for many years to come.
Consumer Debt Feed
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- Consumer debt is growing in the UK
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