Loans : Mortgage : Finance

Debt Consolidation With An Individual Voluntary Arrangement

Debt consolidation – the way to pay all your monthly loans from several companies and in return you need to make one monthly payment to the consolidating company. Debt consolidation is a great way, used wisely, it can make debt management much simpler and reduce the interest you pay significantly. Not everyone qualifies for a debt consolidation. If your credit score is damaged, even with just a few late payments, chances are high that your application will be refused.

In this case you may consider an IVA (Individual Voluntary Arrangement) as the best debt solution for your situation. IVA stands for Individual Voluntary Arrangement. It is a legal and government approved method of resolving debt that avoids the consequences of bankruptcy. There are some companies that even don’t charge an upfront fee and hidden extras for such service. They contact your lenders to find out if they are willing to accept an IVA from you, advice with the necessary paperwork and help you through the whole process getting debt free according to your payment abilities.

IVA Advantages

• Write off up to 75% of your debt
• Be debt free in five years or less
• No more creditor (lender) harassment
• Interest on your debt is frozen
• Avoid Bankruptcy and the restrictions it can impose
• IVA.NET does not charge any fees from you

Financial Advocates: US nonprofit consumer credit counseling agency based in Columbus, Ohio, has issued guidance on how to spot a scam

What is a scam? Its easy to say this is a scam; but its amuch more difficult to define what really makes a scam. Even the Oxford Dictionary says a scam is simply a dishonest scheme; a fraud. But thats just defining a value judgement by other value judgements. If youre wondering what on earth Im going on about, I would suggest thats because we use the term so indiscriminately we just assume we know what were talking about. But do we?

Consider this. Yesterday I opened a new hotmail email account. Hotmail wanted some personal information and didnt give me a physical address. Is hotmail a scam? Yesterday, the RSPCA knocked on the door asking me to set up a direct debit in its favour and pressured me with horror tales about abandoned and abused animals. It didnt work because we already do it; but is the RSPCA a scam? Yesterday, in the street, a scruffy looking young man demanded I give him cash in exchange for a publication I didnt want and threatened that if I didnt pay up, the dog gets it. Is the Big Issue a scam? And in the computer shop, the salesman kept pressuring me to buy now because he wouldnt be able to hold the price beyond the end of the day.

Everybody is after our money. So is everybody a scammer? Clearly not; but wheres the line? Is a scam taking money for something that isnt delivered? When I signed up for my broadband, I was promised speeds of up to 20Mb+. Yeah right! So are (all!) broadband providers scammers? Or is a scam the provision of something that simply isnt worth the price charged? Like a holiday share in Spain? Are they scams? Most people would say yes; but the law would probably say no.

What about Apple products? If you believe the adverts, there is nothing better than an iPhone and an iPad. But if you listen to the geeks, they will tell you that those products are not that special or even innovative. And just look at Apples profits. Frankly, they verge on the obscene. Certainly the profits mean that the products are being sold at somewhat inflated prices; that is, we are being charged more than the value of the product. So is Steve Jobs a scammer? (Well, I think there are many people who would say yes; but the law would unfortunately! say no.)

And the government? They pressure us. They avoid giving us a physical address other than government offices we cant get to. They take our money with false promises. They lie. They cheat. And they dont deliver. Are they scammers? Of course.

Frankly, Im not sure that there is any definitive way to separate scams from sharp practices from inflated prices. So I would take a slightly different tack. Dont buy anything or give anything to anyone who comes to you. If you want something, go look for it. If there’s a disaster or charity; go look for the official channels. Discard ALL emails that ask you for anything. Assume that they are all scams. You willll lose a few opportunities but that is better than losing your identity and savings.

Read more about loan scams here.

The Importance of Credit Rating

Many underestimate the value of a good credit rating in today`s world. Lenders are ever more cautious following periods where they have written off huge amounts of bad debt and are keen to improve the quality of their portfolio by attracting on the best quality credits.

A good credit rating is easy to achieve and even easier to lose! All you have to do is build a track record of paying what you owe when it is due. Never miss a payment and you will build a good credit history.

But the reach of the credit score goes further than just the financial history. Other factors impact on your score just as highly and it is easy to underestimate their influence. One of the most important is where you live! Not only is the post code important (yes – your neighbourhood does have a credit rating too) but also being on the electoral register. It helps to confirm that you have a permanent home and are not `flighty` by nature.

Credit history and files are also used by a wide range of organisations. Telephone companies, utility providers and all lenders (including credit and store card companies) register information when they make a search of your information. Apply for too many loans or shop around for mobile phone contracts and this blitz of requests looks suspicious so the score will be adversely affected. If you are planning to apply for a loan or change energy supplier or mobile phone provider, spread out the requests!

Fortunately you can now check your credit file to make sure that the information held is correct. Many agencies, such as Experian, offer a free 30 day credit check that enables you to see what information is held. There are procedures for correcting erroneous information but the burden of proof will be on you. You will need to liaise with the individual companies that supplied the information rather than the agency itself.

If you believe that you are likely to experience financial pressures then act early. These days there are a number of debt consolidation, loan options or debt management plans that can help maintain your good credit rating. It takes ages to build a good score but only one missed payment to destroy it.

All that you must know about green mortgage

The main purpose of green mortgage or eco-mortgage is to save money and environment. The cost of green mortgage is slightly higher than that of the conventional mortgages. But the home buyers can benefit from this type of mortgage in the long run.

Green mortgage

Most of the people are not aware that homes account for about 21% of green house emissions. That is why it is important to increase the energy efficiency of the homes so that there will be less carbon emission. Green mortgages allow the borrowers to increase the energy efficiency of their homes. That is why this mortgage is also known as Energy Efficient Mortgage. The borrowers take this mortgage in order to buy a new home that is already energy efficient like Energy Star Pilot Mortgage.

The borrowers can buy energy efficient appliances with the help of this mortgage. This will also help to reduce their utility bills. Thereby they can save money in the long run. They can use this extra money towards mortgage payment.

The demand for green mortgages is increasing gradually. This is because the borrowers can qualify for a greater amount of loan through green mortgage. They will also have lower utility bills in future. Green mortgages also attract more customers due to its fixed interest rate.

Types of green mortgages

You can get various types of green mortgage from the market. These are Conventional Energy Efficient Mortgage, FHA Energy Efficient Mortgage, VA Energy Efficient Mortgage, and Energy Star Pilot Mortgage.

Qualifying for a green mortgage

You can qualify for a green mortgage in two ways. Firstly, you can qualify for this loan when you are buying a newly constructed home. However, you can get this loan only when this home has been built to higher energy-efficiency standards.

Secondly, borrowers can qualify for this mortgage on their existing home. For this the borrowers have to appoint a home energy rater who will inspect the home. The home energy rater will issue HERS (Home Energy Rating System) report. This report will predict potential energy savings that can be gained through energy efficiency improvements.

Will I repay all of my debts on a debt management plan?

A debt management plan is a new plan for repaying your unsecured debts in a different way. If you cant afford your existing debt repayments, a debt management plan can (assuming your unsecured lenders agree to it) make your debt payments affordable again, while helping you ensure that all your other essential costs are also met.

You will still repay your debts in full on a debt management plan, but youll benefit from the fact that your lenders are accepting lower debt repayments, which will give you a chance to repay what you owe at a pace you can manage.

But there are also downsides to a debt management plan, and youll need to consider these before you can establish whether its the right debt solution for you.

How debt management works

Before we start, its important to understand that your lenders dont have to accept a debt management plan. But if youre really struggling and you cant afford to repay your debts any other way, its quite possible that your lenders will accept it.

A debt management plan is an informal arrangement with your lenders. Youll make reduced monthly payments towards your debts, based on how much you can afford after your other essential expenses have been paid for.

So for example, lets imagine you should be making monthly repayments of 300 but you can only afford 200 a month. A debt management plan could bring your repayments down to 200, which means you wouldnt have to use up money you should be putting aside for things like your mortgage/rent, utility bills and food.

Repaying your debt in smaller amounts would mean it takes longer to pay off, however, and that would mean theres more time for your debt to accrue interest although its common for lenders to freeze or reduce interest and other charges on a debt management plan, which can stop the debt from growing.

Repaying a debt more slowly can also affect your credit rating, as it means youre not sticking to the terms of your original repayment agreement.

Is it right for me?

Your lenders will only accept a debt management plan if they can see that you need it. Youll have to demonstrate that you cant afford your debt repayments, but can still afford to repay your debt in full over time. Youll also need to be able to commit to regular monthly payments.

If you cant, youll need to consider the other options. Always speak with an expert debt adviser before you make any firm decisions.