Bankruptcy And Debts

offer more flexibility. As Christmas approaches it is also a good idea to make sure you have enough put aside to cover essential bills such as electricity, gas, mortgage and car payments before you spend all the money on presents. Covering these bills is important in order to avoid financial difficulties in the New Year avoiding the risk of utilities being cut off or your mortgage falling into arrears. If you do choose to use credit to cover the expense of Christmas, it is imperative that you ensure you can pay it off in a realistic time scale there is a big difference between being able to service debt (make prompt, small repayments) and afford it (clear the balance within a few months). If you find yourself struggling with debt in the new year contact a free money advice provider, such as Newtomorrow.com, for advice sooner rather than later. Why debt is not a working class problem - Scotland It is a common mistake to think that everyone afflicted with serious debt problems are those on lower incomes. Perhaps you assume it is only working class people who over-extend credit, buy items on hire purchase, and are more susceptible to addictions such as gambling. These assumptions are wrong, for though debt does affect poorer people more than the rich, anyone on virtually any income can get into serious debt problems if they do not manage their finances wisely. Arguably it is actually easier for someone on a higher income to get into difficulty than it is for those on lower incomes. For example, those on higher incomes are more likely to own their home, live in more desirable locations and be registered on the electoral roll all of which makes them more attractive to lenders and gives them access to higher levels of credit. And with a higher income and higher credit comes the temptation to spend more. Combine this with a taste for the good life and a desire to keep up with the Joneses whether it is exotic holidays or fast cars and the potential for debt to become a problem is never far away. In addition, a percentage drop in income for a high earner can have a far quicker impact. No matter what your income is, or what class you belong to, life events can result in unexpected and devastating consequences. Deaths, illness, redundancy and natural disasters can put your financial security in jeopardy. For many homeowners it is tempting to think they have a significant amount of equity in their homes which could be released in the event of unforeseen debt problems. While this may be the case, it can be dangerous to rely on the value of property to cover debts as the value can decrease as well as rise. Equity is not a £iquid asset and cannot be relied upon at short notice. Also, if you have missed payments of important bills or have fallen into arrears especially with your mortgage when it comes to remortgaging your property you may find you are unable to access the best deals prime mortgages. Instead you will be forced to look at sub-prime mortgages, which do not offer quite as attractive rates and incur higher fees and charges. In the case of events such as illness and redundancy, too many people rely on insurance schemes to cover their bills, but these policies often won come into effect for a few months and have a variety of exclusions and conditions in the small print which most people don check or which aren immediately apparent. It is for all these reasons that financial advisers recommend that everyone should keep at least three months of bills and mortgage payments in savings should the unexpected happen. So no matter how much money you have, you should always look at how much you are spending, how much credit you take and if you have adequate savings. If you think you are experiencing difficulties with debt, seek professional & expert debt advice. Why debt is not a working class problem Debt Solutions Company | Re-Mortgage Services & Budgetary Advice Newtomorrow.com specialise in consumer debt, focusing on debt solutions tailored to the circumstances of each individual. Get professional advice for debt problems due to mortgage rises online today at www.newtomorrow.com. Mortgage deals ending - Scotland 250, 000 UK homeowners face minimum mortgage increase of £100 a month to secure a new fixed-rate mortgage deal. Wages would have to rise by £2, 000 a year to maintain the status quo. A typical homeowner with a £150, 000 mortgage would need to see their wages increase by at least £2, 000 a year in order to find the extra cash needed to take out a replacement fixed-rate or discounted mortgage deal, according to expert debt solution firm Newtomorrow.com. A quarter of a million UK homeowners will see their two-year fixed-rate mortgages end in the next three months and will find themselves paying at least £100 a month more for a new fixed-rate deal after a sequence of rate rises this year pushed up the cost of borrowing. In October 2005 the average interest rate on a fixed-rate mortgage was 4.96% according to figures from the Council of Mortgage Lenders or around £885 a month on a £150, 000 mortgage. Many current fixed-rate deals are around 5.79% which is around £996 a month an increase of more than £100. Borrowers with £250, 000 and £60, 000 mortgages could see rises of around £189 and £40 respectively significantly more if homeowners revert to lenders standard variable rates. However, with the recent turmoil in the financial world, and inflation running at 1.8% below the Bank of England 2% target many analysts are predicting that interest rates may be cut later this year. John Hall, chief executive of debt solutions firm Newtomorrow.com, said: everal rises in interest rates over the last year have made all mortgages more expensive, and anyone coming off fixed-rate or discounted deals in the next few months will have to find extra cash. Anyone struggling to pay their other debts as a result of these mortgage rises and facing serious financial problems should seek professional & expert debt advice at an early stage. he recent troubles with Northern Rock and the subsequent credit squeeze may be a double edged sword. It looks as if another rate rise has been averted and that the next rate movement may actually be downwards. We are already seeing some better fixed-rate deals appearing. However, those who have poor credit histories may find it almost impossible to get a new mortgage deal at all as banks shirk from high-risk debt and raise interest rates further on sub-prime deals. /p> The average fixed-rate mortgage in October 2005 was 4.96% with 142, 600 mortgages taken out accounting for 75% of deals. Fixed-rate mortgages currently account for around 79% of all new loans taken out. Mortgage deals ending Debt picture in Scotland - Scotland Average Scot is £30, 000 in debt Statistics reveal picture of debt in Scotland as newtomorrow.com launches TV advertising campaign Scots calling personal debt solutions company newtomorrow.com have an average of £30, 334 in unsecured debt with some owing more than a quarter of a million pounds. Callers phoning newtomorrow.com for advice on average earned £1, 633 a month after tax a salary of more than £25, 000 a year and were spending £1, 306 on bills, while 29% had less than £200 disposable income each month. The situation was worse for the 11% of callers who were spending more each month than they earned. Ian Wright, managing director of newtomorrow.com, said: òe believe these figures are just the tip of the iceberg and that there are many more people who are simply too frightened to face their problems and seek help. The figures were released as newtomorrow.com launches a television advertising campaign to promote its debt advice and solutions services, being broadcast on Scottish TV and featuring Taggart star Blythe Duff. Ian said: Òebt continues to be a major problem for Scots and we are seeing more people getting into financial difficulties particularly after Christmas spending sprees and the economic pressures caused by the global credit crunch. Ïankruptcy is a frightening prospect, but it far from the only option for people struggling with debt. By taking action early, problems can be solved through better budgeting, debt management plans or more formal agreements with creditors. he most important thing, though, is to take prompt action as soon as debt starts to become a problem. Newtomorrow.com statistics also revealed: • The total unsecured debt of newtomorrow.com clients was £44, 257, 507 • The largest unsecured debt found was £229, 100 for men and £265, 466 for women • The total secured debt for newtomorrow.com clients was £47, 210, 941 • The average secured debt was £88, 742 • The largest disposable monthly income after secured debt repayments was £2, 523, while the worst case seen was a client spending £2, 110 a month more than they earned. • The average disposable income was £328 per month • 18% of callers are trying to service their unsecured debts with surplus income of between £0 and £200 each month Q3 Insolvency statistics comment -Scotland John Hall, chief executive of the personal debt solution company- newtomorrow.com, said: hese figures aren surprising and the underlying position is much worse than the figures suggest. here is a dam waiting to burst and the cracks are starting to appear. The reason the figures are not higher still is that lenders are making it more difficult for their customers to put a voluntary debt solution in place by insisting on unachievable repayment levels, resulting in significantly more house repossessions. Ún recent weeks however, there have been indications that lenders are starting to recognise the true scale of the problem and we expect a significant upturn in voluntary debt solutions in 2008. o matter how bad the situation seems, people mustn brush their problems under the carpet. There are always steps which can be taken which don have to lead to bankruptcy or additional debt but people should take advice as early as possible. his is a stark message that people need to be realistic about what they can and can afford; especially as we are approaching Christmas and people feel under pressure to splash out on presents. br> free debt test online application apply Debt Resolution forum Q3 Insolvency statistics comment Debt Solutions Expert | Best Debt Solutions Including Protected Trust Deeds Newtomorrow is a debt management company that specialises in consumer debt, focusing on debt solutions tailored to the circumstances of each individual. The 12 years of Christmas repayments - Scotland The 12 years of Christmas repayments Expert Debt Solutions England | FAQs Newtomorrow offers the best debt solutions in the UK along with remortgage, loan restructuring, IVA, bankruptcy and debt management plans. Get the right solutions for all your debt queries. England FAQs < xml:namespace prefix = rejive /> How do I enter into a Trust Deed A Trust Deed is an alternative to sequestration that is for people with serious debt problems. You can only be considered for a Trust Deed if you owe at least £12, 000 of unsecured debt to a minimum of 3 different creditors. You must be in paid employment and be able to afford a minimum contribution of £200 per month after priority debts, such as a mortgage, to pay towards your creditors. Call Newtomorrow today and we can advise if a Trust Deed is the right solution for you. If it is, we can help you assess your income and expenditure and agree a proposal with your creditors. If you sign a Trust Deed then you will be transferring all of your assets to a Trustee. Assets can include your share of any equity in you home, cars, investments or any other significant assets. Once you sign a Trust Deed your Trustee will place an advert in the Edinburgh Gazette. This is a publication subscribed to by solicitors, accountants, banks and various other institutions. Your creditors will have 5 weeks to object to the terms proposed by your Trustee. Provided that no more than one third in value or a majority number of your creditors object to the terms proposed, the Trust De monebaggasse