http://www.debts.org/index.php en info@debts.org Copyright 2008 2008-12-01T15:28:00+00:00 http://www.debts.org/11/index/debt_relief_order/ http://www.debts.org/11/index/debt_relief_order/#When:15:44:00Z If you’ve had your application for an IVA, Bankruptcy or Debt Management Plan rejected, you may qualify for a Debt Relief Order. In April 2009 the Government intends to give debtors who do not own a property and have very little assets, help with repaying their debt.Proposals for the Debt Relief Order are, at time of writing, being circulated throughout the insolvency industry before going to Parliament More.... The Debt Relief Order aims to tackle the problems faced by a specific group of consumers who cannot obtain debt relief from any other source, be it Bankruptcy, IVA or a Debt Management Plan.If you have debts of £15,000 or less in both secured and unsecured loans, do not own your property and have disposable cash of £50 or less – a Debt Relief Order may be for you.The Government’s proposal is focused at helping Britain’s poorest, typically those reliant on benefits or extremely low income, repay their debt. It’s expected that the cost to participate in a Debt Relief Order will be £100, which is not only cheaper than bankruptcy but more efficient and easier to understand.How the Debt Relief Order WorksWith the assistance of a debt counsellor, consumers will be able to apply for a Debt Relief Order. The authorised debt counsellor – details of which have yet to be finalised – will prepare individual cases to ensure they adhere to the stipulations as laid out by the Debt Relief Order. After which, the debt counsellor, or adviser will send it to the official receiver for processing. The official receiver will be able to authorise the order without taking the application before the courts, thereby saving expensive fees.The Insolvency Register and various credit reporting agencies will have access the individual’s records once on the Debt Relief Order. The duration of the order will be 1 year, at the end of which time the debt owed will be discharged leaving the debtor debt free.NB. Creditors will be granted rights of redress if an application is found to be fraudulent or if the debtor receives a windfall payment.Who Can Apply for a Debt Relief Order?The details are yet to be finalised but it is believed debtors will need to meet the following conditions:1. The debtor must be unable to repay their debts 2. The debtor’s total unsecured liabilities must not exceed £15,000 3. The debtor’s assets must not exceed £300 gross 4. The debtor’s disposable income, ie what remains after typical household expenses, must not exceed £50 per month 5. The debtor must be domiciled in England or Wales, or in the last 3 years have been resident or carrying on business in England or Wales 6. The debtor must not have had a Debt Relief Order within the last 6 years.The debtor must not be involved in another formal insolvency procedure at the time of application for a Debt Relief Order, such as:a) An undischarged bankruptcyb) An ongoing IVAc) An ongoing Bankruptcy Restrictions Orderd) An ongoing Debt Relief Restrictions Ordere) An interim orderf) If there is a current pending debtor’s bankruptcy petition in relation to the debtor but the debtor has not been referred to the DRO procedure by the court as a more suitable method of debt reliefg) If there is a current pending creditor’s bankruptcy petition against the debtor but the debtor has not obtained the creditor’s permission for entry into the DRO process. Debt Relief Order 2008-12-31T15:44:00+00:00 http://www.debts.org/11/index/7_ways_to_make_money_in_2009/ http://www.debts.org/11/index/7_ways_to_make_money_in_2009/#When:12:58:00Z When the champagne has been quaffed and the festivities wind down for another year, we will tentatively welcome 2009 and wonder what it has in store. Its predecessor after all was a tough year for everyone and few have come out unscathed by soaring interest rates, high inflation (around 4.2% at time of writing) and the threat of redundancy. It is possible, however, to make money in 2009 and this is our guide to doing just that.More... Our 7-point plan can help you look forward to the year ahead and make 2009 the year you gave your finances an overhaul. 1. Reduce Your Debts The Bank of England’s Monetary Policy Committee (MPC) has been reducing the base rate since the start of 2008 in a bid to inject some much needed life into the faltering economy. It is a widely held belief among economic experts that the MPC will continue to make cuts into the early part of next year – all of which is good news for borrowers. As we have already seen this year, not all lenders are passing on the rate cut reduction, which still makes debt expensive, so it is safe to assume the same for 2009.The interest rate on most personal loans is typically around 9.5%. Compared with a best-buy savings account at about 4%, it’s clear there is little incentive to save money. Instead, you would be better off scaling back on borrowing and paying off debts. Should you lose your job you will be much more comfortable financially if you managed to repay or reduce expensive debt.2. Overpay Your Mortgage It’s usually the biggest debt of your life so it’s never easy to pay off a mortgage. If you are able to overpay your mortgage or make the odd one off payment, your mortgage debt will shrink a whole lot faster. Most mortgage providers do allow additional payments on a mortgage plan and doing so will help protect you against negative equity. Furthermore, making more than the minimum payment will strengthen your hand should you want to switch mortgages, because you will effectively be storing up a bigger deposit.Still unsure whether overpaying is worth it? A small overpayment can make a significant difference. If for example you borrowed £150,000 at 4% over 25 year term and you overpay by £50 each month, you would pay the mortgage back two years and four months early. That’s a saving of more than £9,500 in interest. If that sounds appealing, make sure you check with your lender in case there are penalties for exiting the mortgage early. Recent figures released by the Bank of England have revealed some surprising statistics. Homeowners paid a record £5.7 billion off their mortgages in the three months to September – which marks the biggest figure since the 1970s and more than double the £2 billion repaid in the second quarter. It is only the second time in almost a decade that consumers have deposited cash into their mortgage debt rather than increase their borrowing levels for luxury items and holidays.If you have recently switched mortgage lenders or have paid off your mortgage in full and ahead of term, you may have been charged a mortgage exit fee. Mortgage exit fees are not always legal and providers can only impose a fee if it is entailed within your original contract. Furthermore, any exit fee must reflect and not exceed the amount stated in your contract.If you believe you have been unfairly charged for exiting a mortgage and would like your money back, please click here.3. Sort Out Your Savings Saving accounts have been suffering since the economy took a tailspin. Interest reates on savings accounts have almost made savings as an investment, a pointless exercise. Approximately a third of variable rate savings accounts now pay 1% or less and 15% pay 0.3%, according to Moneynet.Concern is that the longer this state of play continues the less Britons will be in the habit of saving. It’s not all doom and gloom if you have a sizeable sum to invest. Saving with a best buy AA internet saver account at 4.53%, you would earn £151 a month after tax on a £50,000 deposit. You can also earn slightly more in a fixed-rate savings account if you can put your money away for six months or a year. For instance, the HiSAVE fixed-rate bond from ICICI Bank offers a 5.10% fixed rate for 12 months. Or you can earn 5% in the one-year fixed-rate bond from Anglo Irish Bank. These deals are subject to change and were accurate at time of writing.4. Many Happy Tax Returns It’s that time of year again when you must file your tax return for 2007-8. People who miss the January 31 deadline will pay a fixed penalty of £100. In addition, you may also have to pay any tax owed, plus the first payment on account. Not paying on time carries a daily interest charge of 5.5% until the outstanding amount it settled.If you are planning on making your tax return online, try and avoid the two weeks prior to deadline when the system slows down under a mass of traffic.5. Save EnergyGas prices have rocketed by almost 50% and electricity by 30% over 2008. Now that we are in the thick of winter with a few more cold months in store, switching your utility supplier could mean money in the bank. The cheapest deals for energy in the south Scottish region are British Gas Web Saver, which would cost the typical household £1054.37 a year, a saving of £210.58 a year, assuming they have never switched supplier.Learn more at Save On Your Bills6. Life SavingsLife insurance is not always the best saving solution as the cost can often outweigh the return. Recent years, however, have seen the cost of life cover fall by 40%. If you don’t smoke and are in good health, a life insurance policy could be a sound investment.If you already have a life insurance policy you could think about switching companies. It is certainly worth shopping around because the recent fall in premiums could mean you are paying over the odds. Premiums depend on your age and your state of health but if you gave up smoking over a year ago, you could be entitled to a cheaper policy. Try shopping around online and don’t be afraid to negotiate, especially if you are in the market for more than one policy.That said, the price of your insurance policy should not be the only factor to consider. Does the policy offer the best value for money? After all, it is supposed to be an investment and therefore should be treated as such.7. Broadband BanditsAn estimated 4 million households in Britain have been hit with a series of hidden charges for telephone and broadband services. Hidden charges for not paying by direct debit, set up costs or paper statements are worth £160 million to broadband and telephone providers.When agreeing to a contract with a provider, it may be worth checking if there are any charges for the above services or if there is a download limit. Exceeding the download limit may substantially increase costs.  Also inquire if the company charges a fee for cancelling the contract or for moving house.Have something to share? Don’t go without visiting our Forum 7 Ways to Make Money in 2009 2008-12-30T12:58:00+00:00 http://www.debts.org/11/index/guide_to_shopping_online_safely/ http://www.debts.org/11/index/guide_to_shopping_online_safely/#When:16:18:00Z A Monday which falls in the early part of December always heralds a tsunami of online shopping as people buy gifts in time for Christmas or compare prices after a weekend of bargain hunting. So there is no better time to give you a guide to shopping online safely.It’s estimated around 2 millions online purchases were made on Monday 8th December – a sign the Christmas spirit hasn’t been dampened by the recession. The surge in spending also indicates that consumers still have faith in the security of shopping online. More... However, it is misplaced confidence? Turkeys may not be the only thing stuffed this Christmas as retailers teeter on the brink of collapse after offering large discounts for the last quarter. With this in mind, making online purchases safely has never been more important.Today it is estimated 9 out of 10 people regularly shop online but Internet purchases are set to increase by roughly 130% over the next five years. Our checklist will help you shop safely not just this Christmas but in the years to come. 1. Shop online with a credit cardBuying online can sometimes be something of a gamble and until it arrives you can’t be sure it fits, works or looks anything like the product you ordered. Other times, your purchase doesn’t arrive at all. Thanks to Section 75 of the Consumer Credit Act 1974, if you are unhappy with your online purchase, the credit card company is “jointly and severally” liable with the retailer. Your credit card company will uphold liability for any purchase between £100 and £30,000. If your purchase fails to arrive or is faulty on receipt you should make a request for a refund directly with the seller. If on the other hand the company refuses to give you the money back or has even gone bust, you can reclaim your money from the credit card provider.This rule also extends to overseas companies, which is great news for shoppers who regularly use the Internet. While shopping online is safest with a credit card, making a PayPal transaction does entail a certain amount of risk. If you have used this payment system to make a purchase online, Section 75 of the Consumer Credit Act will not support your request for a refund. Instead you should follow PayPal’s own dispute process.For more reasons why people use credit cards, click here2. Use Extended Warranty Credit CardsMost electrical goods come with a warranty in the event you need to have them repaired, however, non-electrical purchases may not be covered. Using a credit card may mean you get theft or damage protection as well as extended warranty on a wide range of goods, not just electrical.The following credit card providers offer some form of purchase protection that could save you money:American Express, Barclaycard, Capital One, Citi, Co-op, Egg, MBNA, Nationwide, Post Office and Virgin. 3. Does Your Credit Card Have Internet Guarantee? While somewhat rare, transactions online can be subject to fraud. If a regular online shopper, a credit card provider that offers you Internet guarantee would serve your best interests. Internet guarantee is cover against fraudulent activity during the course of an online transaction. The terms and conditions of the protection can vary between issuers so make sure you get the comprehensive cover you need. Credit card providers who do not offer internet guarantee protection, at time of writing, include: Bank of Ireland, Clydesdale, Co-op, Coutts, First Trust, GE, Nationwide, Northern Bank, Smile, Ulster Bank, Yorkshire Bank and Yorkshire Building Society. 4. Avoid Using Debit Cards If Possible. Unless your debit card provider is Mastercard or Visa, it is unlikely your issuer will offer Internet protection, purchase protection or extended warranties. Furthermore, because transactions made using a debit card are not a credit arrangement, Section 75 of the Consumer Credit Act does not apply. All of this means you are at the mercy of the seller should you demand your money back.Some banks, however, do offer a process that disputed debit card purchases can follow. Those banks, at time of writing, include: Abbey, Co-op, Smile, Coventry Building Society, Halifax/Bank of Scotland and Nationwide. 5. Use Anti-Virus SoftwareWith so many viruses affecting even home PCs, it’s important you have the latest anti-virus software installed on your computer. It’s also advisable that you use the most up-to-date web browser and that your personal “firewall” is intact.If you share your computer, or shop online at work, always log out after shopping online. 6. Check The Seller’s CredentialsThere are three things to look for in order to ensure that the company you are buying form is kosher. You know the company’s web address, but does it also have a geographical address? Plus, look out for a landline phone number and try calling; it’s a simple but effective way of reducing the risk of Internet fraud. Never assume that an Internet company is based in Britain just because its web address ends with ‘co.uk’. Returning items or getting a refund may be more difficult with overseas companies, so if you want to ensure your seller is based in Britain, you should follow the advice above. 7. Terms And ConditionsThe price is right and you can’t wait to enter your card details and make that purchase, but hold on a moment…have your checked the terms and conditions? Yes, they are boring but when buying online they are a must read. Every online retailer should have terms and conditions clearly laid out on their website. You should be looking for details on payments, delivery and any cancellation charges etc. What we order online often looks very different from what we receive, and it if it’s clothing you definitely stand the chance of returning your purchase. So again, check the terms and conditions. 8. Website Security Before you make an online transaction check to see that the website you are buying from is secure. A padlock icon is typically displayed somewhere at the bottom of your screen to indicate that the seller has made all attempts at securing your details. Also check that the “http” web prefix has changed to “https” – the additional “s” stands for secure. 9. Register Your Credit Cards For extra peace of mind consider registering your credit card with “Verified by Visa” or “Mastercard SecureCode”.Either of the above programmes will ask you to verify an additional password to help prevent it being misused. Visa or Mastercard will also provide you with a code to confirm that the credit card company knows the firm you are dealing with. 10. Keep Paperwork When you make an online purchase, you will usually receive a confirmation email or be presented with a screen detailing your order. Always print off record of your transaction in case you need to raise a dispute at a later date.Have any other secuirity tips for shopping online? Please post them in our Forum by clicking here. Guide to Shopping Online Safely 2008-12-10T16:18:00+00:00 http://www.debts.org/11/index/saving_gateway/ http://www.debts.org/11/index/saving_gateway/#When:14:25:00Z With people emptying savings accounts like pint pots on St Patrick’s Day, the Government has been searching for the right incentive to reverse the trend. Chancellor Darling announced details of a scheme in late November 08 that is hoped will encourage low income groups to acquire a taste for saving.The Saving Gateway will be begin in 2010 and be available only to savers who are receiving benefits, working tax credits or income support. Under the Savings Gateway, the Government will add 50p for every pound saved by an individual. The Government’s contribution is limited, however, to £300 per saver. More... Only people who save on a consistent monthly basis with a bank or building society for 2 years will see their savings topped up by the Government.ReactionsThe Building Society Association has warmly received the Saving Gateway proposals. Rachel Le Brocq, of the BSA said: “We welcome the opportunity for building societies to be involved in the Saving Gateway scheme.” A somewhat unsurprising reaction considering the amount of money building societies have seen go out the door since the crunch took affect.Accounting firm Grant Thornton, however, took a dimmer view of the saving initiative. Accountant Mike Warburton criticised the Government for showing a lack of generosity. “Limiting the Government’s matching amount to 50p per pound, and the total payable to £300 per person, is not very generous.”He went on to attack the Government for ignoring savers, which he claims is the reason the savings ratio has fallen from about 8% of income to less than zero over the course of Labour’s rule. If you participate in the Saving Gateway initiative, it is worth remembering that any savings over £16,000 would be detrimental to your benefit allowances. Saving Gateway 2008-11-26T14:25:00+00:00 http://www.debts.org/11/index/famous_people_bankruptcy/ http://www.debts.org/11/index/famous_people_bankruptcy/#When:12:43:00Z Bankruptcy is often thought of as something that happens to ‘life’s losers’ or to the ‘down and outs’, but bankruptcy happens to people everywhere – from the arena of movies, sport, business and entertainment. Famous bankruptcies proves that bankruptcy is ordinary even if you aren’t. More... Burt ReynoldsThe actor Burt Reynolds was once just as famous for bankruptcy as he is for his moustache. Movies such as The Cannonball Run (1981) made him a box office hit and a household name in the USA and Europe. In 1996 Reynolds filed bankruptcy after an expensive divorce from Loni Anderson forced him to sell his east and west coast properties in order to repay a $10m debt. When Senate addressed bankruptcy loopholes in 2001, it was already too late to stop Reynolds from keeping his $2.5m Florida mansion – something that infuriated creditors and some politicians. Senate even cited the leniency towards Reynolds as a reason for revising bankruptcy law. In 2005 President Bush tightened bankruptcy law further at the behest of unhappy creditors who believed bankruptcy was still an easy option for debtors not willing to pay bills.As for Reynolds, after some kamikaze career moves he bounced back with a Golden Globe for Best Supporting Actor in Boogie Nights.Kim BasingerKim Basinger made her mark on cinema with hit movies such as 9½ Weeks (1986), Batman (1989) and L.A. Confidential (1997), for which she received an Oscar for Best Supporting Actress.It’s believed Basinger’s problem with agoraphobia prompted her to buy a small town called Braselton, Georgia in 1989, which was seemingly irresistible at $20 million. The actress made the purchase with the ambitious plan of turning the sleepy town into a tourist attraction complete with festivals and movie studios. Her hopes were dashed, however, when in 1993 she sold it having been overwhelmed with financial problems.Sadly things got worse for Basinger when she was hit with an $8m lawsuit after making the controversial Boxing Helena. As a result of the legal action taken by the studio, she filed for bankruptcy and managed to settle for a lesser amount.Mike TysonAt 21, Mike Tyson was the youngest heavy weight world champion and in his peak systematically beat anyone that entered a ring with him. His ability to pack a punch was matched only by his ability to make a purchase – interests included limousines, watches, jewelry, cars, mansions, clothes and Siberian tigers. You could say he had expensive taste – even his choice of pet cost thousands of dollars upkeep every month. Add that to his party lifestyle and poor financial decisions and you almost see why he ended up with debt worth $27m, excluding back taxes. Almost.Tyson was able to file for chapter 11 bankruptcy in 2003 due to his vast earning potential but his boxing days were finished after a number of embarrassing comeback attempts. It has been a little over 10 years since Tyson could demand a $30m paycheque per fight. Times are tough for Tyson.Walt DisneyIf ever there was a fairytale ending, it was in the story of Walt Disney. It wasn’t all puppies and rainbows for the king of cartoon. In 1922, as a young man in Kansas, his first attempts at starting a film company ended in disaster. The only thing he had to show for his endeavours was a pile of debts he couldn’t pay.Disney’s debt problem began when he struck a deal with a film distribution company working out of New York City. The deal turned sour when the distribution firm did the dirty on Disney and cheated him out of money. Now finding himself without the financial muscle afforded him by the NY company, he couldn’t could pay his bills and his studio filed bankruptcy in 1923.Disney’s fortunes were reversed five years later in Hollywood with the creation of a mouse called Mickey. Abraham LincolnAbraham Lincoln was certainly no ordinary person but at the same time faced ordinary challenges. Prior to running the United States, Lincoln couldn’t run a shop. The former president co-owned a general store in Illinois, in 1832. With his business partner, Abe succeeded in accumulating huge amounts of credit from suppliers without being able to make any sales of his own.Seeking a way out of his debt problem, Abe sold his shares to his business partner. Unfortunately, for his partner and for Abe, he died leaving Abe responsible for a $1,000 debt. Creditors soon swooped and without any bankruptcy laws to support his predicament, Abe was forced to sell his assets – a horse and some surveying equipment – before agreeing to repay the remaining debt, which he did well into the next decade.Oscar WildeWhen the famous playwright, Oscar Wilde, was sentenced to two years hard labour for gross indecency in 1895, his whole world collapsed. Friends disowned him, press hounded him and theatre dropped his productions like a hot potato despite the roaring success of A Woman of No Importance. The Marquees of Queensberry’s son, Lord Alfred Douglas, had a sexual relationship with Wilde for which the Marquees sought to punish him financially as well as with incarceration. Wilde had spent £600 unsuccessfully defending Marquees’ libel charges and as a result of the lawsuit also had to pay court costs. Marquees demanded payment in full, which gave Wilde no option but to go bankrupt. Bankruptcy forced Wilde to sell valuable books as well as an assortment of artworks created by his friend Aubrey Beardsley. Wilde suffered the additional humiliation of appearing in a bankruptcy court cuffed by chains before being returned to jail to await trial. The outcome of the trial would be 2 years hard labour in Reading Prison. Wilde duly served his time and was released, but to a life very different to the one before prison. Over time Wilde was to enjoy some further successes as a poet-playwright and with a little help from his friends, regain ownership of his estate.Francis Ford CoppolaFrancis Ford Coppola has been credited with making some of the finest films ever made with The Godfather trilogy and rightly so. Although plagued with problems both on set and off, Apocalypse Now was another masterpiece that made Coppola one of Hollywood’s most respected directors. (Apocalypse Now was delayed to such an extent that critics dubbed it Apocalypse When?)Unfortunately Coppola couldn’t maintain the high standards he set himself and went on to make a succession of movies that bombed in the box office, such as The Cotton Club (1984).Prior to the aforementioned disaster he made another flop in One From the Heart (1982), a move that cost $26m. The movie’s failure meant Coppola spent the rest of the 1980s paying off debts narrowly escaping bankruptcy in the process. Zoetrope Studios, who made the movie One From the Heart were less fortunate and filed for Chapter 11 bankruptcy in 1990.If this page has helped dissolve some preconceived ideas you may have had about bankruptcy, then don’t stop here, visit Bankruptcy Myths for more information. Famous People: Bankruptcy 2008-11-20T12:43:00+00:00 http://www.debts.org/11/index/mortgage_rate_cut_10_investment_tips/ http://www.debts.org/11/index/mortgage_rate_cut_10_investment_tips/#When:14:24:00Z The Bank of England’s 1.5% mortgage rate cut in November came as huge relief to homeowners who have been struggling to pay bills. For people on tracker mortgages as well as homeowners on their lender’s variable rate, the cut represents a considerable monthly saving.Quickly crunching some numbers reveals the saving potential. An average mortgage of £150,000 after the interest rate cut would give you a saving of £120 per month on your tracker mortgage. If you are only paying interest on your mortgage you stand to save as much as £2,280 a year. More. Unfortunately, however, not all banks have handed the rate cut down to customers. Abbey, Lloyds TSB and Alliance & Leicester who make up the three biggest mortgage lenders in Britain, launched new tracker loans on the back of the rate cut announcement but never passed on the 1.5% reduction to lenders.If you are one of the fortunate ones who stand so save some extra money as a result of the interest rate cut, you will be pleased to know we have 10 tips on how to put that money to work. Depending on your financial situation, you will find some of the 10 points more relevant than others, nevertheless, by adopting any of the following tips, you stand a better chance of surviving this economic storm. 1. Pay off a debtSpare cash is hard to come by these days so it’s increasingly difficult to pay off debts. Money saved on your mortgage, however, provides the perfect opportunity to start reducing your most expensive debt, whether it is a credit card or loan.A credit card with even an average interest rate of around 17% APR can be an expensive source of credit which you should reduce as fast as possible. For example, a borrowing of £5,000 on a credit card at the above rate will cost £9,614 in interest. In this case you can see how paying more than a minimum payment would be the way to go. Furthermore, by paying off a credit card debt you will not incur any penalties, unlike some loans which have redemption fees written into the contract. If you like to pay off your credit card as soon as possible, click here, or more more information on credit cards, including how to get the best credit card deal, click here.2. Increase your mortgage paymentsNot a popular suggestion we know, but putting the interest cut savings towards your mortgage can lead to substantial long-term benefits. Not only will you own your home that bit sooner, but also by reducing your existing mortgage you stand a better chance of refinancing to a better rate.If you are on a tracker mortgage you will probably be able to increase your monthly repayments by as much as £400 or even £500 a month without incurring any penalties. Lenders have been tightening their lending criteria drastically over the last year and have restricted the best mortgages to people with equity at around 40%. House prices are continuing to fall and with no end in sight for the mortgage crisis just yet, increasing your equity is the only sure way to capitalise on the best mortgage deals and in turn snap up a bargain.That said, if you are planning on making a large purchase in the near future, such as a car, you could be better putting your interest savings in an account with a high interest yield. Putting money into your mortgage may mean you can’t get it back out again if you need it. For more information on finding the best mortgages, click here.3. Open a savings account The credit crunch has made it impossible for many people to save, causing many to feel insecure about their financial situation. Savings made from a mortgage rate cut however offer the ideal opportunity to invest in a high interest savings account. Banks are very keen to reward savers who are determined to invest money in a savings account on a regular basis, ie monthly. At time of writing, some savings accounts such as Abbey’s Super Fixed Rate Monthly Saver offer as much as 10% for a year. Other high paying accounts include Norwich & Peterborough’s Gold Savings Account that pays 8%. For more tips on savings, click here4. Invest in the stock marketNot one for the feint hearted because the stock markets have been doing something of a kamikaze in recent times, but the best way to capitalise in a falling market is to make regular modest investments. It’s never easy to judge when a stock has hit bottom and is set to rise again, so there is always a danger your investment may continue to make a loss until the market recovers. It has been proven however, that smaller investments made regularly during a market downturn reaps bigger rewards than a lump sum at say £1,000, would. You may want to consider investing in equities or bonds, which do not require large pots of money. Investing your £120 interest cut saving would soon bear fruit worthy of any garden show. Alternatively, you could invest your money in an ISA, for a fully comprehensive guide to ISAs, click here. 5. Buy Payment Protection Insurance There’s no getting away from it, the financial crisis has led to a lot of fear and insecurity. Unemployment levels have been steadily rising since the crunch hit around August 2008 and thousands of homeowners have been forced to default on mortgages.Payment Protection Insurance (PPI) can be peace of mind for many who suspect they could lose their job before the economy recovers. If you have a credit card or loan you will probably already have a PPI policy. A PPI policy sold under correct conditions can insure your income for up to a year. Policies typically cost between £25-£35 a month and can insure up to £1,000 in mortgage payments as well as your other loan and credit card obligations.Note: PPI policies have received a lot of bad press recently and rightly so. Banks have been criticised by the Financial Services Authority for mis-selling PPIs to people who are not eligible for cover, ie the self-employed or the over 65s. If you already have a PPI policy you may be entitled to reclaim £1,000s. Find out more and start your application here.Alternatively, if you are considering buying a PPI and would like to ensure you are not mis-sold a policy, click here.6. Invest in your child If your child was born after 2002 they are automatically given a £250 Government trust fund voucher. Most of these vouchers are for stakeholder funds. Thankfully your child is too young to stress over the beating their investment has received in recent times but they still stand to gain over the long term. By the time they turn 18, when they can access the money, the £250 should have blossomed into a handsome sum.What are Child Trust Funds? These funds are tax-free accounts open to investment from adults and say, grandparents, who would like to play a part in the child’s future. A Child Trust Fund is not without its limits; £100 is the maximum monthly deposit. While £100 a month is a fairly modest amount, especially if split between more than one adult, it promises to reap long-term dividends of roughly £35,750* – not at bad reward for an 18 year old.* This calculation is based on 6.75% growth with contributions starting at age 0 incurring an annual charge of 1.5%. For more information on children’s savings accounts, click here.7. Invest into a pension fund For the more long-sighted saver, adding to a pension fund may be the preferred option. Saving accounts are liable for tax deductions but your pension contributions are safely out of reach from the people down at the Inland Revenue.Using your extra £120 mortgage rate money to start a pension fund is not recommended for anyone over 30-years-old, as the benefits will be too minimal later in life. For someone who has already been investing in a pension fund for some years, however, such as someone in their 50s, topping up their pension by £120 could make a worthwhile difference. 8. Buy a Health Cashplan The money you save from the mortgage rate cut can be used to lower the cost of health treatments. Health cashplans are designed to take the pain out of dentist, doctor and optician expenses, all of which can add up over the course of a year. Health cashplans are similar to health insurance policies but they are less expensive and used slightly differently. Health cashplans are suited to people who regularly attend the dentist or have their eyes examined, but can also be used to cover more expensive treatments.Under a cashplan scheme you would pay the intitial costs of treatment upfront and reclaim the money by receipt from your cashplan provider. How much money you are entitled to reclaim largely depends on the nature of the cashplan policy – some are more comprehensive that others in order to fit your budget. It is worth noting, however, that many cashplans will not cover any preconditions you may have.Typical policies can provide sufficient cover for less than £10 per month, which can help pay for prescriptions, eye glasses and some other medical procedures.For more details try visiting:hospital-saturday paycare.org9. Prepay your children’s school fees Many parents are concerned about the standard of education and behaviour at state schools across Britain and would like to give their child a private education. Private school fees are undoubtedly expensive, but by planning ahead it is possible to set enough money aside to give your child the best education possible. By investing your mortgage savings in a tax-free insurance policy while your child is still an enfant, you should be able to provide a nice little nest egg for when they approach school age.Alternatively, if your child is already at a private school, you should be allowed to pay school fees in advance, which can protect you against rising rates.10. Go shopping The world’s economy, especially ours in the West, relies on you spending your hard earned money in shops, restaurants, bars and stores. The government has effectively cut mortgage rates in order to put some spare cash in your pocket so you can spend it on the high street. Unfortunately, most people will need the extra money just to survive but for some, the cash can be used for day-to-day spending.This last option may not benefit your family, or provide a future investment but it does feel good.If you have a comment to make on the mortgage rate cut, please visit our Forum by clicking here. Mortgage Rate Cut: 10 Investment tips 2008-11-13T14:24:00+00:00 http://www.debts.org/11/index/debt_help/ http://www.debts.org/11/index/debt_help/#When:06:31:00Z Have a bankruptcy burden? Share it at our community Forum Feeling poorly because of debt? Then this section may be just what the doctor ordered. Here we look at the two most popular means of clearing unmanageable debt – Bankruptcy and IVA.Our debt advice is for anyone with debt problems and because Debts is impartial we help you explore all your options so you can choose the one that best meets your needs. We also put you in contact with professional companies, like The Debt Clinic who specialise in the various forms of debt help, such as bankruptcy or IVAs. So for some fast and effective debt relief, drop into the clinic and Get Debt Help NowAlso, we have debt help for businesses as well as some important information for people dealing with bailiffs. More... BankruptcyIf your debt has become unmanageable and you would like to have your debt written off, then you could consider bankruptcy. Debt help in the form of Bankruptcy is always a last resort and one that should be weighed up very seriously with the long term consequences in mind. If you need help with bankruptcy then get informed first, and seek advice second – this site will help you do both. Visit our Bankruptcy section for a comprehensive guide to this debt solution before you seek advice.If you do wish to contact a firm who specialises in bankruptcy, visit our Debt Help Providers page for listings.IVAIndividual Voluntary Arrangements are a popular alternative to bankruptcy because it enables the debtor to keep their assets and write off much of their debt – as much as 75% in some cases. An IVA gives you protection from creditors and allows you to repay your debt in affordable monthly payments. Visit our IVA section for more information and take care to consider IVA disadvantages before you make a decision. If you wish to speak to a company about an IVA, visit our Debt Help Providers page for listings.Business InsolvencyIf you are in danger of going bust then you have come to the right place. Our Business Insolvency pages offer practical debt help for business owners who are operating as a limited company, a partnership or as a sole trader. Find out how to reduce business overheads, improve cashflow and how to avoid business insolvency. If you need to speak to a company who deal with insolvency for business, visit our Debt Help Providers directory for listings.BailiffsIf you are visiting us because you need help with bailiffs, then you will be glad to know we explain your rights in plain English so you know what you can and can’t do the next time a bailiff pays a visit. Of equal importance is bailiffs rights, they are entitled to carry out certain duties but it pays to know where their entitlements start and end. Check out our page on bailiff charges as well as our guide on seizure of goods which has some key tips on how to negotiate with a debt collector.For a complete overview of bailiffs, who they are and what they do, click here. Debt Help 2008-07-22T06:31:00+00:00 http://www.debts.org/11/index/credit_card_repayment_plan/ http://www.debts.org/11/index/credit_card_repayment_plan/#When:12:52:00Z Have you a credit card complaint? Please share it on our ForumWhen you have a pack of credit cards to repay at the end of each month, knowing how to manage the various debts can be a little confusing. With our five-point strategy we have made credit card repayments simple. For how to pay off your credit card, follow the principles below: More....  1. Prioritise credit cards Arrange your cards in order of interest rates starting with the highest down to the lowest. If you are unable to pay a substantial amount on each credit card you should pay the minimum on the card with the lowest interest rate and pay the greatest amount on the most expensive card. The most expensive card is the card you should be seeking to eliminate first because the longer you have this card the longer you shall be in debt. Whenever you pay less than the minimum amount, your credit card company will consider it a default. A late or inadequate payment will also be recorded on your credit report, making future credit harder to obtain. Always honour the minimum payment. 2. Get debt up-to-date If you have missed repayments on any credit card you should plough every spare penny into getting your debt up-to-date. If your credit card company does not receive any payment for three to six months, they may hand the account over to a debt collection agency. Aside from the extra fees you will have incurred on the card, involvement of a debt collection agency is extremely detrimental to your credit rating. 3. Mind your limit If you have exceeded the limit on any credit card you ought to bring it below the agreed cap as soon as possible. Over the limit fees can soar into orbit within a short space of time if left unchecked. In this instance you should contact your credit card provider and ask them to freeze penalties in exchange for a repayment plan. If you convince them you are serious about bringing your spending below the limit they may consent to a flat one off fee. Psst...if you find this information helpful please post a comment on our Forum 4. Zero makes you a hero Your credit rating will be much improved if you demonstrate an ability to keep your balances close to £0. Future lenders will view you as someone who can manage credit and will offer you the best interest rate deals - on credit cards, mortgages and loans. Keep an eye on credit cards that are starting to stray further from £0. Tighten the reigns on your spending and up your monthly payments in order to bring that balance down with a bang. 5. Transfer balances Shop around for cheap credit card deals and get out of debt faster. Consider transferring your balance onto a low interest credit card and aim to repay your debt before the introductory period lapses. Return to Debt homepage. Credit card repayment plan 2008-07-08T12:52:00+00:00 http://www.debts.org/11/index/debit_vs_credit/ http://www.debts.org/11/index/debit_vs_credit/#When:14:27:00Z Debit or Credit, which do you prefer? Tell us on our ForumTo debit or not to debit, that is the question. Okay, so Shakespeare didn’t quite put it like that but it’s a question worth asking if you are determined to tighten your purse strings this year.The debit or credit conundrum is nothing new and just like any debate worth its salt, there are pros and cons on both sides. This page looks at the six key areas that will help you decide which card to pick next time you make a purchase.More.... Transaction FeesCredit card fees can be expensive especially when they accelerate faster than Formula 1. Credit card companies have ditched annual fees for the more lucrative late fees and over the limit fees, which means your purchase must be within the agreed limit and repaid in full, on time, or else.Debit cards represent a much tamer form of fee and only arise when a retailer uses a PIN number instead of signing for a transaction. Now that PINs are steadily replacing the need to provide a signature, most banks do not charge for this facility, but it is advisable to check with your card provider beforehand.Verdict = Debit card.Fraudulency Having your credit card stolen or used in a fraudulent manner can give you a sleepless night, but the same happening to your debit card truly is the stuff of nightmares. If your credit card is used fraudulently, the thief is in fact spending the bank’s money not your own. This means the bank, not you, is liable for the money it has lost.A debit card however gives the thief access to your entire current account – unless you act fast and inform your bank before any damage has been done. If you can prove it was fraud and you act fast enough you will get your money back.Verdict = Credit cardEasy AccessDebit cards can spell open season for your checking account if the PIN falls into the wrong hands. Card scammers can create a fake card, use your PIN at an ATM and empty your account of cash. Falling victim to scamming can happen in a petrol station or shopping mall, all it takes is a dishonest employee. If your debit card is used fraudulently, you may get your money back but only once you have jumped through enough hoops to prove it was fraud.Verdict = Credit cardChargesBouncing a check or entering an unauthorized overdraft will make using your debit card very costly. Charging a debit card for daily expenses is a common mistake. Small purchases and lots of them can quickly send your budget spiraling out of control which increases the risk of bouncing a check or busting an overdraft. Using your debit card for a ₤3 sandwich could end up costing ₤30 in fees.You could consider using credit. Even a ₤60 annual fee on your credit card is a small price to pay if it means you avoid paying a series of overdraft fees.Verdict = Credit cardPsst...if you find this information helpful please post a message on our ForumUniversally acceptedA debit card or credit card will be accepted almost everywhere. The most common exception, however, is car rental agencies. You may be unable to use your debit card to hire a car - the reason being the rental company will want to charge your credit card should there be a breach of contract on your part. Another reason a car rental agent may only accept credit cards is the idea that credit proves you must be a responsible citizen. This belief helps them relax a little when you leave the parking lot in their car.If you are travelling abroad, your debit card may be used to withdraw cash at an ATM but you will not be able to make electronic transactions as you would at home. A credit card on the other hand is accepted everywhere you see the logo.Verdict = Credit cardReal moneyMost people prefer debit cards over credit cards because you are using real money and not the borrowed kind – which means you don’t have to pay interest or run the risk of incurring late payment fees etc. Verdict = Debit card Debit Vs Credit 2008-06-18T14:27:00+00:00 http://www.debts.org/11/index/free_credit_report/ http://www.debts.org/11/index/free_credit_report/#When:08:01:00Z Get your free Experian Credit Report here.The largest credit reference agency in the UK is Experian, which­ collate information about your financial background and past behaviour and format this data into your unique credit report.You can see your credit report online now for free with CreditExpert, the credit monitoring service from Experian.Lenders see this information when they decide whether or not to offer you a loan, mortgage or credit card. It influences their assessment of the likelihood that you will repay what’s borrowed. More.... Information comes from two main sources: 1. Public records, such as court judgements, individual voluntary arrangements and bankruptcies. Your credit report also shows whether you are registered to vote lenders use this as a precaution against fraud, to check that you are who you claim to be and live where you say you do. 2. Information from lenders and financial institutions, such as records of the number of loans you have and whether you have ever missed a repayment. It’s important that all this information is as up to date as possible and correctly reflects your circumstances. Then lenders will make the best-informed decisions ­ and you will get the right deal. The easy way to check your credit report is to log onto CreditExpert, the credit monitoring and identity protection service from Experian. Click here for a free, 30-day trial, which will allow you to see your credit report as often as you like. Free Credit Report 2008-06-12T08:01:00+00:00