Credit Card Debt Solver

Can a Debt Relief Order (DRO) Help Me When I’m Not Able to Repay My Unsecured Debt?

Guest Author — Fri, 20 Apr 2012 04:33:13 +0000

A DRO is simply the acronym for a Debt Relief Order. It’s an insolvency solution available to residents of England, Wales and Northern Ireland who have a low income and limited valuable assets – and who simply can’t afford to repay their unsecured debts.

Could a DRO help you get back on top of your debt problems? Let’s take a look.

Is a DRO suitable for me?

If you simply cannot afford to repay a significant amount of unsecured debt in the foreseeable future, bankruptcy is often considered a suitable approach.

However, for some borrowers who have a low income and few assets, the high cost of bankruptcy makes this option impossible. This is where a Debt Relief Order could provide an ideal alternative.

You could qualify for a DRO if:

You have unsecured debts of no more than £15,000 that you can’t afford to pay back.
You have total assets worth less than £300 in total (although this can include a car worth up to £1,000).
You have a monthly disposable income (after your essential outgoings) of less than £50.
You haven’t had a DRO in the past six years.
You aren’t going through any other form of insolvency.

Bear in mind that, if you do enter a DRO, your credit rating will be affected for six years from the day it starts.

Visit http://www.debtadvicenow.co.uk/dro-debt-relief-order/ for more information.

How does a DRO work?

If your DRO application is successful, you’ll have your unsecured debt repayments effectively frozen for a 12-month period, which means you won’t have to make any payments during this period and interest & charges won’t be added to your debts, so they won’t continue to grow.

During this ‘moratorium’, your lenders will also be prevented from taking any legal action against you.

Then, if your circumstances haven’t improved by the end of the year, all debts included in your DRO will be written off – so you’ll have no more liability towards them.

About the Author: M Jackson is a financial advisor for Debt Advice Community. She brings an unique perspective on personal finance, frugality and all kinds of consumer financial products and services.

Use Your Money Wisely – Personal Finance At Its Best

J.J. Yong — Mon, 16 Apr 2012 04:45:13 +0000

In order to gain financial stability in your life, you need to use your money in the correct manner. Some of these steps include saving for your retirement, paying off the debts that you have gathered, reevaluating your budget as per need and keeping your expenses under control. These are all financially good for you.

However, there are times you stress out too much over money matters without being able to get to the cause or combat your money problems. It is necessary that you take time out and evaluate your habits with an objective mind so that you find the faults that keep you losing money.

Here are mentioned a number of excellent financial habits that you can adopt to make your money work the best for you.

1. Always shop during sale – Research has shown 62% of the consumers in the United States rarely pay the full price for the clothes that they purchase. It is highly likely that you fall within this 62% and if you don’t you should make a quick dash to fall in this bracket. However, the habit of paying less for clothes should be made a regular habit rather than a onetime habit in order to reap its complete benefit. Thus you should always shop during sale and wait for another sale if you don’t find any item that you were searching for.

2. Be creative about cutting your costs – This one is quite a popular one amongst most people as they can do things their own way. One time after other readers who have read up on personal finance tips and have been benefited have shared their stories about different innovative ways in which saving can be done, right from clipping coupons to do it yourself way of making anything happen. You surely do understand the value of a dollar and can even get that nickels can add up. Thus you can try everything to save money right from homemade sorbet to hand mixed hair conditioner.

3. You care about your financial well being – In a study conducted based personality trait and wealth it has been observed that people who are too distracted to even deal with their finances were the ones who are worse job of managing their money. The fact that you are actually seeking out advice on how to manage your finances well, shows that you care about your financial future. This is the first step towards putting your finances in order.

4. Be resilient – In one study conducted people were grouped into resilient and overwhelmed personalities in order to judge how they behave when faced with adversities. The overwhelmed group usually gave up as they felt the situation ganged up upon them. However, the resilient group instinctively picked back up and started over. Those who were resilient were seen to have higher amount of wealth indicating the fact that they managed their money well and could combat any situation they faced.

5. Have a budget for yourself – Even if you occasionally give in to impulse buying, you are already ahead of the game by simply making a budget for yourself. Having knowledge about how much you would be spending each month and how much your basic expenses cost, is the solitary best way to not go overboard with your finances. You can even use budget planner found in different websites to help you make your budget.

So you can see that the above things can help you a long way in making your finances work for you and help you in using your money right.

Author’s Bio: Martha Jackson is a financial advisor for EasyFinance.com. She brings a unique perspective on personal finance, frugality and all kinds of consumer financial products and services.

How to Repay Your Credit Card Debt

Guest Author — Mon, 05 Dec 2011 18:21:15 +0000

If you’ve taken on debt using your credit card(s), you’ll want to repay this as soon as possible to minimise the amount of interest your creditors charge you.

Here’s a quick guide to how you could improve your debt management skills and clear your credit card debts:

Budgeting
The first thing you could do to improve your debt management skills is create a monthly budget.

To create a budget, write down all the money you earn each month, followed by all the money you spend each month on your essential costs (such as secured debts, food and utility bills).

Once you have these two amounts, subtract your essential expenditure from your income… and you’ll be left with your disposable income.

Your disposable income is the money you have available each month to spend on your unsecured debts – in this case, your credit card debts. Once you have covered the cost of your unsecured debts, you may be left with some spare money. If you are, you may want to consider…

…Overpaying your debts

Making overpayments towards your credit card debts can be an excellent way to reduce the amount you owe quickly. By paying more than the required amount each month, you will become debt free sooner (providing you don’t borrow any more).

Don’t take on any more debt

This tip may seem obvious, but it’s crucial that you don’t take on any more debt using your credit card while you are paying your old debt off. Of course, if you can repay it immediately/definitely can afford to repay it when your statement comes through, you should be fine. But as a general rule of thumb, you shouldn’t take on any further debt unless you can definitely afford to repay it – at the same time as keeping on reducing your original debt!

About the Author: Article written by Melanie Taylor from financial solutions company Think Money. Melanie has worked in financial services for over 15 years, and is an expert in credit card debt and debt management.

Should I File Credit Card Debt Bankruptcy To Get Rid Of My Credit Card Debt?

J.J. Yong — Mon, 18 Jul 2011 03:50:46 +0000

Unemployment rates are rising heavily, foreclosures are at record high, and credit card debt has reached an all time high. Unable to deal with the crisis, many consumers are now opting for credit card debt bankruptcy to get relief from their credit card debts.

However, there are many other options available to get rid of your credit card debts without approaching credit card debt bankruptcy.

If you’re considering filing either chapter 7 or chapter 13 bankruptcy to get out of your debt, take a look at some other options: debt consolidation, credit counselling and debt settlement.

Debt Consolidation

Debt consolidation is an option available than going for credit card debt bankruptcy to shed off your debts. Debt consolidation is simply the procedure of mingling a number of unsecured loans into another unsecured loan. You can do this by taking out a ‘low interest debt consolidation loan’ or a loan by using the equity of your house. Debt consolidation further provides you the opportunity to make single monthly payment to a single creditor. It’s always better than credit card debt bankruptcy, as here you also get the chance to improve your credit score.

Credit Counseling

Credit counselling can also help you to shed your credit card debt without moving toward credit card debt bankruptcy. To know if credit counselling can assist you, ask yourself the following questions:

Is my debt a result of lack of self-control?
Is my debt a result of poor spending habits?
Is my debt a result of overindulgence in wants rather than spending on my requirements?

If your answer is yes, then credit counselling might work for you. However, if your debt is incurred due to unexpected expenses (job loss, medical), and not the result of lavish spending, then credit counselling is not for you.

Credit counselling often involves a negotiation with creditors to establish a debt management plan (DMP) for consumers. A debt management plan usually consists of reduced payments, fees, and interest rates for the client.
Therefore, before choosing credit card debt bankruptcy, make sure you’ve checked the options twice mentioned here.

About The Author: This article has been written by Angela Sanders. She is associated with Oak View Law Group, A Trustworthy Bankruptcy Law Firm. She writes articles on various financial topics, such as Debt Consolidation, Debt Settlement, Bankruptcy Filing, General Finance etc.