Browsing Category: "Debt"
Paying Off Debt Makes the Difference
Debt August 30th, 2011
This featured post is presented by The Debt Myth.
Paying off debt can make a huge difference in your life. Imagine the relief you’ll feel when you no longer have the stress of figuring out how to cover everything — and when you have the freedom to do the things you want to do with your money.
Paying off debt is a matter of four basic things: not taking on new debt, making paying off debt a priority, cutting spending, and making more money. Get on track with those four things, apply the debt snowball method, and you’ll be on your way to being debt free!
Continue reading Paying Off Debt Makes the Difference at The Debt Myth.
Frequently Asked Questions about Bankruptcy
Debt February 23rd, 2011
This is a guest post by Elliot Majere relating to bankruptcy from a UK perspective.
Bankruptcy carries negative connotations and many people feel ashamed and embarrassed if they end up pursuing bankruptcy. But that can sometimes be the best option, if another debt management plan has failed. If your debts have
gotten so out of control that a debt management plan is not going to help, it can help you sort your debt problems and relieve some of the intense stress associated with debt.
In the UK, the process can be started by you or may be started by a creditor whom you owe more than £750 to. The process essentially involves an appointed Trustee selling assets and distributing the money to your creditors in order to allow them to receive as much of the debt owed as possible. Once your bankruptcy period is over, old creditors cannot legally chase you for any outstanding debt.
However bankruptcy is not an easy escape route. It brings certain restrictions and implications, unlike a debt management plan or debt consolidation. In certain professions your employment might be at risk, and the bankruptcy will appear on your credit record for a period of time. Today it is less common for bankruptcy to be advertised in the local media, but your details are placed on a bankruptcy register which is publicly available. Bankruptcy is a last resort; it is certainly not the easy option so make sure you have taken debt advice prior to pursuing it.
Debt advice may point you in a different direction than bankruptcy. Maybe a debt management plan would be more suitable, for example an informal arrangement may be arranged with your creditors to create an affordable payment plan instead. Make sure that any debt advice you take is from a reputable source and any debt management plan that is implemented is realistic and achievable.