<?xml version="1.0" encoding="utf-8"?>
<?xml-stylesheet href="http://www.dissolvedebt.co.uk/blog/rss/rss20.xsl" type="text/xsl"?>

<!-- generator="boastMachine v3.1" -->
<rss version="2.0">
 <channel>
	<title>Dissolve Debt</title>
	<link>http://www.dissolvedebt.co.uk/blog/index.php</link>
	<description>Dissolve Debt's webBlog dealing with debt issues in the UK</description>
	<language>en</language>
	<docs>http://backend.userland.com/rss092</docs>
	<pubDate>Mon, 14 Aug 2006 16:34:16 +0000</pubDate>
	<managingEditor>admin@dissolvedebt.co.uk</managingEditor>
	<webMaster>admin@dissolvedebt.co.uk</webMaster>
    <item>
      <title><![CDATA[Bitten by Bankruptcy? Try an IVA]]></title>
      <description><![CDATA[Research at Dissolve Debt has shown that up to 1 million people are on the verge of declaring themselves bankrupt as they struggle to cope with thousands of pounds worth of debt.

Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order.

Bankruptcy is the most drastic method available for dealing with debts you cannot pay. It can however set you free from overwhelming debts so you can make a fresh start, and makes sure your assets are shared out fairly amongst your creditors. However there are many implications of bankruptcy. During your bankruptcy you will be subject to several restrictions, which can be avoided through an alternative to bankruptcy such as an IVA. Anyone can go bankrupt, and there are different insolvency procedures for dealing with companies and for individuals who become bankrupt.

Applying for an IVA is a regularly looked at as an avoidance from bankruptcy. The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. You can even take out a fresh mortgage while in an IVA. What's more, it is a totally private arrangement - nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job is not at risk and with Dissolve Debt an IVA can write off up to 75% of your debts.

There are so many advantages of an IVA. For example, there is not the stigma or the publicity that normally accompanies bankruptcy and the debtor can continue to trade in a business to generate money. It can give the peace of mind to have a fresh financial start.

The implications of bankruptcy are simple. Some of these disadvantages are: loosing control of your a ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/34/Bitten-by-Bankruptcy-Try-an-IVA</link>
      <pubDate>Mon, 14 Aug 2006 15:46:33 +0000</pubDate>
      <category>IVA</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/34/Bitten-by-Bankruptcy-Try-an-IVA#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Do You Really Need That Credit Card?]]></title>
      <description><![CDATA[Do you currently have a credit card? If you do, then you are like most other individuals. Credit cards have increased in popularity over the past few years. Despite being popular, there are still many individuals who do not have a credit card. If you are one of those individuals, it is likely that you may have wondered if you need to have one.

Determining whether or not you need a credit card is a fairly easy process. To determine whether nor not you need one, you will need to examine your shopping needs and if a credit card may be required to fulfill those needs. Despite the fact that credit cards are increasing in popularity, there are a number of popular retail stores, hotel chains, and car rental locations that are beginning to accept other methods of payment.

If you are interested in shopping online, you may need to consider obtaining a credit card. A large number of online retailers only accept credit cards. Some online retailers are beginning to accept online checks or debt cards; however, this is something new. If you need to make a purchase now or in the immediate future, you may need to obtain a credit card to make that purchase.

While online shopping is the place where credit cards are most often required, you may also find that you need a credit card to rent a vehicle, reserve a hotel room, or make an airline reservation. You can make an airline reservation, book a hotel room, or rent a vehicle for any occasion, but most do so while on vacation. If you are interested in taking a vacation, at least someone in your traveling party should have a credit card. It may be possible to find an airline, hotel, or car rental location that offers alternative payment options; however, they are sometimes few and far in between.

The good news about shopping online or planning a vacation is that they are usually planned ahead of time. If you find that you need a credit card, you can often obtain one before you need to use it. Unfortunately, the same cannot b ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/33/Do-You-Really-Need-That-Credit-Card</link>
      <pubDate>Wed, 09 Aug 2006 14:13:38 +0000</pubDate>
      <category>Credit Cards</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/33/Do-You-Really-Need-That-Credit-Card#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Paying Off Your Credit Cards: Running The Numbers]]></title>
      <description><![CDATA[Ever thought about paying off your credit card balances? Maybe you would like to be debt free just to reduce your stress. Or perhaps you need to be debt free to retire.

If you have Microsoft Excel running on your computer at home or work, you can use Excel's NPER function to calculate how quickly you can pay off a debt such as a credit card balance.

The NPER function calculates the term, or number of regular payments, needed to pay off a debt given its interest rate, payment amount, oustanding balance, balloon payment (if any), and, optionally, the type-of-annuity switch.

The type-of-annuity switch is a little complicated, but here's how it works. If you set the type-of-annuity switch to 1, Excel assumes payments occur at the beginning of the month, following the annuity due convention. If you set the annuity switch to 0 or you omit the argument, Excel assumes payments occur at the end of the month following the ordinary annuity convention.

But let me show you how the function works in theory and in practice. All of this will become quite clear, I'm sure.

The function uses the following syntax:

=NPER(rate,pmt,pv,fv,type)

For example, to calculate the number of £100 monthly payments required to pay off a 9% credit card that has a £10,000 balance, you enter the following formula into an Excel worksheet cell:

=NPER(.09/12,-100,10000,0,0)

The function returns the value 185.53, representing roughly 185 payments and then another roughly half payment. Notice that to convert the 9% annual interest to a period interest, the formula divides the annual interest rate by 12. Notice, too, that the payment amount, as a cash outflow, shows as a negative value while the loan balance, as an implicit cash inflow, shows as a positive value.

One final note: The NPER function rarely returns an integer, or whole-number result. As in the preceding example, it commonly returns a fractional value, indicating that after the last regular payment, an additional f ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/32/Paying-Off-Your-Credit-Cards-Running-The-Numbers</link>
      <pubDate>Mon, 31 Jul 2006 12:42:11 +0000</pubDate>
      <category>Credit Cards</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/32/Paying-Off-Your-Credit-Cards-Running-The-Numbers#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Millions refused in lending purge]]></title>
      <description><![CDATA[An estimated 3.5 million people have been turned down for credit during the past year as banks tighten their lending policies.

People applying for a credit card were most likely to be hit by financial firms tightening their rules, with around 1.7 million people having their application refused during the past twelve months. At the same time, around 1.5 million loan applications were rejected and 260,700 mortgage applicants were also turned down, according to financial website moneyexpert.com.

The group warned that lenders were likely to make their policies even tougher going forward if interest rates rise during the coming year.

Research carried out by the group found that 60 percent of people would apply again if they have an application for a credit card or a loan refused, and 12 percent would even reapply to the same lender. The group said consumers often did not understand why they had been turned down for credit, and the only way to find out was to ask the lender who had rejected the application.]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/31/Millions-refused-in-lending-purge</link>
      <pubDate>Tue, 04 Jul 2006 12:18:32 +0000</pubDate>
      <category>General</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/31/Millions-refused-in-lending-purge#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Consumers comfortable with debts]]></title>
      <description><![CDATA[Nine out of 10 people in the UK are comfortable with their debts while one in five expect to reduce their borrowing over the next 12 months, research by MyCallcredit reveals.

The telephone survey asked people how much they owed, how comfortable they were with their debts and where people think they will be in a year.

It found young people are the least optimistic about their financial position, part-time workers are the most likely to be out of their depth and there is a significant minority of Britons who are overindebted.

MyCallcredit director Alison Nicholson said: “Three times as many people expect to reduce their debt burden over the next year than expect it to increase, which is good news.

“However, there are some people who expect their situation to get worse, one in four people between 16 and 24, and one in seven people who aren’t working, expect more of their income to be spent on unsecured debt repayments in a years time.

“This is bad news for the housing market as it will put further pressure on first-time buyers and delay their entry into the housing market.

More than one in two people (55.8%) know exactly how much they owe on credit. Nine out of 10 people (92.7%) say they are comfortable with their levels of debt. One in 13 people (7.3%) say their debts are a struggle or they are out of their depth.

One in 15 Britons (6.5%) think they will be spending more than they do now on unsecured debt repayments in 12 months time.

People who are not working and have credit commitments are the most likely to say they are struggling financially or out of their depth (15.4%) followed by part-time workers (10%).]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/30/Consumers-comfortable-with-debts</link>
      <pubDate>Wed, 14 Jun 2006 16:31:06 +0000</pubDate>
      <category>General</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/30/Consumers-comfortable-with-debts#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Get More Credit - 5 Tips to Gaining a Higher Credit Limit]]></title>
      <description><![CDATA[If you are a credit card holder, like most others you would probably like to have a higher credit limit. It would enable you to make more and more purchases that you would not be able to afford to in one go. More importantly, though, a higher credit limit can come in very handy when something unexpected crops up such as a car repair that you have not budgeted for. So how to go about getting a higher credit limit? One method would be simply to ask your issuer to increase, however, they are unlikely to accept. They will increase you credit limit if they feel that you have proved to be reliable. Using an analogy, if you were to borrow money from a friend and not pay him back for a long time or be very inconsistent with your payments you would need some nerve to ask him for even more money. The same applies with credit card companies and banks. Below are 5 top tips to obtaining a higher credit limit:

1. You must abide by the terms and conditions issued by the bank or credit card company. They want to give you a higher credit limit so don't give them an excuse not to.

2. Prove your credit worthiness not only to the credit card issuer but with any other credit you have such as mortgages, personal loans and car finance packages. Defaulting on any of these would certainly dissuade the bank from increasing your credit limit.

3. Use your credit card on a regular basis. Rather than paying with your debit card for everyday things, use your credit card then immediately pay it off. Regular usage and consistent repayments will allow the bank to build a more complete picture of your habits than if you just use it for emergency purchases. This will make it easier for them to decide if you should have a higher credit limit.

4. Make more than the minimum repayments each month. A higher credit limit goes means potentially larger minimum repayment amounts. It follows that if the issuer sees you are only able to make the minimum payment then it doesn't make sense to increase  ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/29/Get-More-Credit--5-Tips-to-Gaining-a-Higher-Credit-Limit</link>
      <pubDate>Mon, 12 Jun 2006 12:29:40 +0000</pubDate>
      <category>General</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/29/Get-More-Credit--5-Tips-to-Gaining-a-Higher-Credit-Limit#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Before Considering Bankruptcy Try These Things]]></title>
      <description><![CDATA[Filing for bankruptcy is an extreme move, not a quick fix. It's a long, painful process with a huge stigma, and you're unlikely to be able to get any kind of credit for ten years afterwards. Yet bankruptcies are on the rise. Out of ignorance or stupidity, more and more people seem to be using bankruptcy as a first option, instead of a last resort. Before you do it, make sure you've considered every alternative.

Have You Reorganized Your Debt?

If you haven't tried debt consolidation or negotiation, you really should. Yes, you'll have to pay back your debts eventually, but surely that's better than bankruptcy, isn't it?

Sell Everything You Can.

It's better to sell everything you own than it is to go into bankruptcy. Move to a smaller house. Sell your cars and take the bus. Take a good, hard look at your life, and realize that there are very few true 'basics': you can do without almost everything. Your house is probably full of quite valuable things that you never use, so bite the bullet and get rid of them. In short, subtract your debt payments from your income, and live like someone who earns that much.

You are going to lose almost everything you own if you declare bankruptcy, so you might as well try to sell it yourself at a better price and avoid the bankruptcy issue altogether.

Work More.

If you can get extra hours, do it. Being bankrupt is such an indignity that you should at least try going to your boss and asking for a pay rise or promotion. After all, the worst they can do is say no. They're going to find out about it anyway if you declare bankruptcy, and they might wonder why you didn't come and ask for their help. Also, if you're married and only one of you works, try to get the other a job - you never know, it might even be fun!

Use the Power of Threats.

One of the best things to do when you're considering bankruptcy is to write a letter to absolutely everyone you owe money to, letting them know. Make it a very clear threat: &quot;if I ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/28/Before-Considering-Bankruptcy-Try-These-Things</link>
      <pubDate>Thu, 08 Jun 2006 13:26:29 +0000</pubDate>
      <category>IVA</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/28/Before-Considering-Bankruptcy-Try-These-Things#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Keeping Track Of Your Credit Score Can Help you Avoid Bankruptcy]]></title>
      <description><![CDATA[Having a copy of your credit score can most often mean the difference between going deeper into debt and getting out of it. Because most people do not keep track of their credit score, they often go into deep debt without even realizing it. Every time you are late making payments to a creditor or skip one all together, you are subjected to loosing points on your credit score. Your credit score is used to show creditors and lenders how much they can trust you to pay back your loans and/or purchases when credit is being offered. If your credit score is low, creditors are less likely to offer you credit because it shows that you are a higher risk customer.

Creditors have access to computers that will report all of your credit habits and transactions such as: bill paying, credit card payments, missed and skipped payments, and debt. The more you miss payments, the lower your score gets. The average person usually starts with a credit score of about 800 and every time you skip or miss payments, that number gets lower. 

Once that credit score gets to a certain low number, usually around 500 or so, is when a lot of people will file for bankruptcy. When they do this these creditors are automatically paid in full, but the bankruptcy stays on your credit report. There is one type of debt that bankruptcy will not clear and that is any money that is owed to the government from taxes or student loans etc. Filing for bankruptcy should not be used for this.

Keeping track of your credit score is necessary these days because that score can go down faster than you can imagine. When you keep up to date with your credit score you can prevent it from getting to the danger point which is 500 or less and you can save yourself a lot of trouble later on like when you want to buy a house. Ideally you should try to keep your credit score at 700 or higher but 650 is still decent. If you want to get a copy of your credit score, you can visit www.equifax.com and use the credit report to  ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/27/Keeping-Track-Of-Your-Credit-Score-Can-Help-you-Avoid-Bankruptcy</link>
      <pubDate>Sun, 04 Jun 2006 17:12:17 +0000</pubDate>
      <category>General</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/27/Keeping-Track-Of-Your-Credit-Score-Can-Help-you-Avoid-Bankruptcy#cmt</comments>
    </item>
    <item>
      <title><![CDATA[How to Avoid Credit Card Fees]]></title>
      <description><![CDATA[Credit cards have become a necessity for some people in society. Why not? They help out a person extend his cash flow more. If you are in a tight fit and would need to use cash, the credit card can be your answer.

Because of the nice sounding concept of extending the cash flow those credit cards give. People often fall into their trap too. People often become tempted to overuse their cards and not be able to pay off the debt.

Credit cards can be very helpful. But a person who has a credit card must know to use it wisely. The user must learn to avoid the pitfalls or certain charges that can make the use of credit cards burdensome. Here are the costs that you must try to avoid from credit cards.

Grace Periods:

The grace period is the time given by the credit card companies to a card user to pay off the debt past the due date without additional charges. Grace periods was more often used by the card companies in the past. Now, card companies are charging fees for a minor time or day of payment delayed.

Before, when you charged the maximum on your card but were able to pay it off before the end of the grace period, there will be no extra charges. Now companies have reduced the grace period of 25 days and some even removed it.

Remember that the purchase you make today will be accrued immediately. So check the contracts of the card you are about to get. If there are no grace periods before the interest will build up, find another card company.

Late Fees:

Always know how much the late fees will cost you. This is because late fees can be the real burdensome fees. Card companies are making more money out of you because they have increased the late fees and removed grace periods.

So it is important, if possible to pay the bill immediately once you receive the card statement. Aside from paying large late fees, they will also report it to credit bureaus and will have a bad mark on your credit rating history or score. The card companies may also raise t ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/26/How-to-Avoid-Credit-Card-Fees</link>
      <pubDate>Wed, 03 May 2006 22:54:21 +0000</pubDate>
      <category>Credit Cards</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/26/How-to-Avoid-Credit-Card-Fees#cmt</comments>
    </item>
    <item>
      <title><![CDATA[Take the credit - 8 cheeky ways credit cards burn your cash]]></title>
      <description><![CDATA[The transactions we take for granted, such as internet payments, holiday shopping or simply spreading the cost of expensive items, would all be complicated or impossible without credit cards.

But our flexible friends can become sneaky traitors if we don't keep them under control.

Here are eight reasons you should treat your credit card with caution.

1. High rates of interest

Borrowing on a credit card is a convenient way to budget. You can pay for things as you go along and then settle the bill at the end of the month. But if you don't make full payment, expect to pay a high rate of interest - which may be all right for a month or two, but is a poor choice for longer-term borrowing.

The latest Bank of England figures show that consumers owe a total of nearly £57 billion on their cards - the equivalent of about £1,000 for every man, woman and child in the country.
Many would be better off with an unsecured loan, with fixed monthly payments.

2. Introductory rates can catch you out

Card issuers touting for custom have been offering attractive balance transfer deals and low or even 0% introductory rates.

That's great if you can take full advantage and meet your bill in full when the time comes to pay up.
If you don't, expect to be hit with a harsh rate of interest when your deal comes to an end.

3. Sneaky increases in fees

Fees are edging up, too. MBNA is increasing its maximum fee for balance transfers from £50 to £75 to squeeze card holders who regularly rotate their line of credit. It is also raising its minimum balance transfer fee from 2% to 3%. The company is also starting to introduce annual fees for customers who repay their balance each month.

4. Take a rain check on cheques

How convenient they seem, but credit card cheques are a minefield for the unwary. Banks issuing credit card cheques include Royal Bank of Scotland, HBoS, Lloyds TSB, Capital One and MBNA.
The idea that you can write a cheque to someone who does not ..]]></description>
      <link>http://www.dissolvedebt.co.uk/blog/post/index/25/Take-the-credit--8-cheeky-ways-credit-cards-burn-your-cash</link>
      <pubDate>Mon, 03 Apr 2006 15:02:41 +0000</pubDate>
      <category>Credit Cards</category>
      <comments>http://www.dissolvedebt.co.uk/blog/post/index/25/Take-the-credit--8-cheeky-ways-credit-cards-burn-your-cash#cmt</comments>
    </item>
  </channel>
</rss>