Daily Archives: October 10, 2008

Bankruptcy, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, IVA, Loans, Money, Personal Finance

Debtadvisersdirect.co.uk Remind Borrowers That An IVA Can Represent A Straightforward, Reliable Solution To Their Financial Problems

In response to economic data from the Office for National Statistics (ONS), debt experts DebtAdvisersDirect.co.uk remind consumers that the right debt solution can help them regain control of their debts, despite the unpredictability of the UK’s finances.

On 30 September, the ONS confirmed that GDP growth (Gross Domestic Product – a measure of economic activity) had been 0.0% in the second quarter of 2008, down from the 0.3% reported for the first quarter.

In other words, although the UK economy isn’t in recession (usually defined as two consecutive quarters of negative growth), nor is it experiencing growth – the usual state of affairs under ‘normal’ circumstances. More worrying yet, the economy would have to decline only slightly for the remaining six months of the year to be officially classed as ‘in recession’.

“It may be hard for people to see such macro-economic statistics as relevant to them as individuals,” stated a spokesperson for Debt Advisers Direct, “but the impact is all too likely to make itself felt in the average UK citizen’s daily life. In general, a slowing economy means everyone has less money: not just employees and employers, but the government itself. Given the rapid rises we’ve seen in the cost of living, any threat to a household’s income should be taken extremely seriously.

“People with high levels of debt, struggling to keep up with their debt repayments, are particularly likely to worry about the effects of a slowing economy. There may be little they can do to influence their utility bills, the price of food, or even their job security, but there may be something they can do about their debts – whatever debts an individual is facing, if they become unmanageable, there are a range of debt solutions available that could help reduce their payments and bring their debts under control.”

For people with unsecured debts of around £15,000 or more, an IVA (Individual Voluntary Arrangement) may be the most appropriate debt solution. An alternative to bankruptcy, an IVA is a form of insolvency that helps people bring their monthly debt repayments back down to an affordable level and – in the longer term – clear those debts entirely.

“An IVA is a legally binding agreement between an individual and their creditors. In brief, the individual agrees to make fixed monthly payments for a set period (normally five years), based on what they can afford to pay after taking essential living expenses into account. If they own their home, they may also be required to free up equity in their home (towards the end of the IVA) to increase the amount they can pay their creditors.

“It’s a big commitment, but their creditors will, in return, agree to freeze interest, not to take any legal action (such as pushing for bankruptcy) and to write off any outstanding debt once the IVA has successfully concluded. So an IVA can deliver clear benefits to borrowers and creditors alike.

“Finally, should the borrower’s circumstances change during the course of the IVA, they can request an ‘IVA variation’ – it’s in the creditors’ interests as well as the individual’s to make sure the IVA succeeds, so they may well agree to alter the terms of the agreement if this is clearly the best way to bring the IVA to a successful conclusion.”

Via EPR Network
More Financial press releases

Banks, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Money, Personal Finance

Consumers Should Realise How Unlikely They Are To Lose Their Savings If A Bank Fails

Responding to recent troubles in the banking world, debt management company Gregory Pennington reminds consumers that a bank’s issues do not actually put most people’s savings at risk.

“Some may be tempted to keep a close eye on their bank’s finances, waiting to withdraw all their money at the first sign of trouble,” said a spokesperson for the debt management company. “Of course it’s vital to protect your investments, but it’s also important to understand the extent of the protection offered to normal savers.”

“First of all, troubled banks don’t necessarily ‘go bust’, as some headlines may infer. In the case of Bradford and Bingley, for example, their website informs visitors that ‘Bradford & Bingley’s branches and savings customers are now part of Abbey and Santander. One of the largest banking groups in the world with more branches in the world than any other international bank.’ For their customers, it’s ‘business as usual’.

“Second,” the spokesperson for the debt management company continued, “there’s the Financial Services Compensation Scheme (FSCS), the UK’s statutory fund of last resort for customers of authorised financial services firms. The FSCS means that the first £35,000 of each customer’s savings with a firm are guaranteed – even if the company can no longer repay that money, it would be refunded in full by the FSCS.”

Savers with deposits over £35,000 may still receive some of their remaining money, but that would not be guaranteed, and would depend on how the insolvency process plays out.

Naturally, many people with savings of over £35,000 may wish to keep their money with various different banks. Someone with £70,000, for example, could split it equally between two different banks and have the entire sum guaranteed.

“Note, however, that the FSCS compensates people ‘per authorised institution’ – many banks are in fact subsidiaries of other financial institutions, so someone who split £70,000 between two banks that share the same parent company would be guaranteed only £35,000 of their money if that parent company was declared insolvent.”

As a debt management organisation, Gregory Pennington focuses on helping people manage and clear their debts: “In the vast majority of cases, it makes financial sense for borrowers to get out of debt before they start saving, as debts tend to gather much more interest than savings.”

The company does, however, also provide advice aimed at helping people stay out of debt in future. “While some people face debt problems because they’ve financially over-committed themselves over a period of time, others find themselves pushed into debt by a sudden change in circumstances (sickness, for example, or unemployment). Without some ‘rainy day’ money set aside, it’s all too easy to accumulate small debts which grow into large debts as they struggle to fund debt repayments at the same time as keeping up with their normal financial commitments.

“Whether it’s a few hundred pounds or many thousands, saving for the future is one of the single most important things an individual can do in order to safeguard their financial stability in the future. Since we advise people to start saving as soon as they’ve settled their debts, it’s worrying to think that the last year’s events in the banking industry may have put some people off the idea of saving. Aside from compensating people whose banks run into trouble, the FSCS serves another vital function: giving would-be savers the confidence that comes with knowing their investment is protected.”

Via EPR Network
More Financial press releases

Checking & Savings, Financial, Financial Management, Financial Solutions, Money, Personal Finance

The Money Saving Calendar Informs Consumers How To Organize Their Life To Be More Thrifty During These Harsh Economic Times

While billionaires are baying for their bailouts, the average person got left behind, again. Facing spiraling fuel and food prices, threats of foreclosure, and uncertain job prospects, middle-class and working people feel trapped—and left out.

But there’s hope: Each month, The Money Saving Calendar from AdamsLLC offers…
• Green energy tips to lower not only your carbon footprint, but also your energy bills (examples: in the winter, leave the oven door open after you’ve been baking…use insulating ceramic paint—developed by NASA—to lower your energy cost every time you paint a room…install energy-saving film to reduce heat loss from leaky windows and doors)
• Money-saving tips in food, appliances, using outside contractors, and more (examples: when your plumber needs to dig a hole, get the location and dimensions and hire someone cheaper… buy food items at the dollar store
• Businesses you can start on a shoestring: zero to $2000 typical startup cost (from caring for elders to stenciling address numbers on mailboxes to installing Christmas lights)
• Home improvement tips to increase the value of your home—and your quality of life—while spending little or nothing (examples: put a radiant heat barrier in your attic to slash air conditioning costs…buy new faces for your kitchen cabinets instead of replacing the entire cabinet system, and install them yourself to save thousands of dollars)
• Checklists of money-saving activities you can do every month
• Even a place to write personal and financial goals each month

Each month includes these sections: Money making opportunities, money saving ideas, items that pay for themselves, home improvement tips, best bargain products, personal and financial goals, and a repeating checklist of money-saving things to do.

“A wall calendar is something people look at every single day, and the message is reinforced every time,” says Adams LLC President Dale Adams. “For a lot of people, it presents information in a way that’s much easier to absorb than from a book. The calendar makes it easy to actually take action to improve your life and your wallet.”

One thing you won’t find inside The Money Saving Calendar: pictures. As frugal as his customers, Adams sees no reason to spend extra printing costs for pretty pictures, and this way he can not only provide more useful information, but also keep the price down to just $7 plus $3 US shipping. For the same reason, the calendar is only available directly from the company: visit www.adamsllc.org, or call 870-391-2231.

Journalists: Adams is an author and inventor, and is available for interviews.

Via EPR Network
More Financial press releases