Blog

There are so many bills that the average household has to think about these days and it seems that most of them are continuing to rise as time goes on. One every day living cost that has experienced substantial increases in the past few years is that of petrol.

Many of us rely on petrol in one way or another. Many of us use cars to get around and to carry out every day tasks and simply avoiding the costs by going without just isn’t an option that we can seriously consider. However, there are several things that you can do in order to save money on your petrol bills. Here are 4 top tips, brought to you by IVA Zebra.

1 – Make sure your tyres are inflated.

On average, you’ll save 2% on your fuel bills if you keep your tyres inflated to the recommended pressure. Check your tyre pressure regularly.

2 – Use air conditioning sparingly.

Using air conditioning will use fuel and sometimes you could simply open a window instead. Think about opting for windows over air conditioning and you could save up to 5% on your fuel bills.

3 – Look around for good deals.

As with most things, you can find good deals if you shop around. Even if it is a few pence per litre, the savings will soon mount up. If you don’t like shopping around, look out for websites, such as petrolprices.com.

4 – Watch your speed.

Driving at 60 miles per hour will use significantly less fuel than if you drive at 80 miles per hour. Keep your speed at a constant and you will use less fuel than if you regularly accelerate and decelerate.

The cost of living is on the up and with unemployment levels at the highest in 17 years, it is crucial for the majority of the population that savings are made wherever possible. The price of fuel is steadily increasing, meaning that many people are in a position of fuel poverty. Unfortunately, there is very little that can be done to avoid this rising cost, yet there are other things that can be done to avoid feeling the pinch quite so much.

Groceries are a necessity, but the way we shop for our essential items isn’t always the most cost effective. When it comes to buying food, there are a number of things that you should bare in mind to ensure that you aren’t paying over the odds. Here are 5 simple tips for keeping your grocery bills to a minimum:

1 – Don’t always go for the big brands.

In the major supermarkets there are generally alternatives to the expensive brands that we usually go for, at a fraction of the price. Although the price is lower, that doesn’t necessarily mean that the quality is. Own brand products often originate from the same factories as the bigger brands; you just don’t get the fancy packaging. Unless you eat the fancy packaging, this shouldn’t really make a difference!

2 – Make a list and stick to it.

It is always advisable to make a list of the items you need. Once you have your list, stick to it; don’t get sidetracked and tempted by items that you don’t necessarily need. This will usually help you cut out the luxury, expensive items that simply aren’t necessary.

3 – Vouchers

Vouchers and discount codes are all the rage these days. Look out for them in newspapers, magazine, television; in fact, just about everywhere! They could save you a substantial sum of cash.

4 – Cheaper cuts of meat.

You don’t always have to go for the most expensive cuts of meat. Cheaper cuts might not be all that familiar to you, but give them a go. Often you will find that they are much tastier than the more popular cuts and they are a fraction of the price.

5 – Best before / use by dates

Most households waste a great deal of food by allowing it to perish and then having to throw it out. Don’t be confused by sell by dates and use by dates. There will often be a few days between, so don’t throw anything out just because the sell by date is reached. There may be a few days left in it yet!

Figures revealed earlier this month showed that home repossession in the UK is on the rise. In fact, studies carried out by charity Credit Action found that one home is repossessed every 14.6 seconds (over the period of the research). This figure could be significantly higher if it wasn’t for low interest rates making mortgages ‘affordable’ for more people.

More and more people are falling into arrears with mortgage payments, meaning that many people are falling further and further towards having their homes repossessed.

As we are constantly reminded in the news, unemployment is reaching the highest level in decades and the cost of living has been rising steadily in recent years. Every day, 1,650 people are made redundant and 154 mortgage possession orders are granted. Unfortunately, this looks set to worsen in the near future, so it is imperative that people do everything they can to protect themselves from losing their homes.

If you are already falling behind with mortgage payments, there are several things that can be done to ease the struggle of monthly payments. Your first port of call would be to speak directly to your mortgage provider. Some lenders will offer reduced payments or payment holidays, which allow you the space to get back on track with payments.

However, if you have been left with no alternative but to obtain credit and have run up debts of £15,000 or more to two or more lenders, you could be eligible for an IVA. This will allow you to freeze interest on your debts and to reduce monthly payments to a level that is more affordable. Outstanding debts may be cleared after the 5 year arrangement and you will be able to keep your home throughout the process.

To find out more, contact IVA Zebra today.

A study carried out earlier in the year found that as many as a third of pensioners in the UK are affected by debts of £25,000 or more. The recent economic crisis has affected the vast majority of the population, none more so than people aged 65 or over.

There are a number of reasons why pensioners have been hit the hardest by the recent economic downfall. Firstly, with interest rates being at a record low, those people entering retirement receive a lower return than expected from their pensions. In addition, the rising cost of living is making it increasingly difficult for many households.

Many pensioners are forced to fund their retirement through various means of credit – namely credit cards, unsecured loans and overdrafts. Naturally, it is a worry that people will be entering retirement in a position of debt and to avoid having these debts spiral out of control when it comes to the point when pensions are the main source of income, it is highly advisable that people do everything they can to either clear or reduce these debts as much as possible before retiring.

A recent statement from the Consumer Credit Counselling Service claimed that around 427,000 households with people over the age of 70 in them are in a situation of financial difficulty. This is the situation whereby debt repayments are behind by 3 months or more or there is a real risk that falling behind with payments could occur. They also warned that the situation is set only to worsen, as inflation continues to rise.

If you are approaching retirement, it is highly advisable that you try to clear as much debt as possible before you rely solely on a pension as a source of income. There are a number of options available to reduce or clear your debt entirely; more information on which can be found at IVA Zebra. Act now and save yourself from financial hardship during in retirement.

At present, there are no rules that prohibit students from entering individual voluntary arrangements. Students and graduates alike often face the burden of personal debt. 3 years, if not longer of full time studying, which is often funded by a student loan. University fees and the cost of living can soon add up and a part time job simply won’t be enough to cover this.

This will often tempt students into applying for credit cards or loans to help out with the ever-increasing cost of living. With little or no income during the time at university, debts can often spiral out of control.

If debts exceed £15,000, most people can apply for an IVA – including students. The same rules apply and stipulate that the applicant must be able to afford the monthly repayments. However, student loans cannot be written off with bankruptcy or with an IVA due to the Enterprise Act of 2004. Before this Act was passed, many graduates would take advantage being able to get a clean financial slate by declaring themselves bankrupt.

Although bankruptcy will affect your credit rating for a substantial amount of time, many graduates were seeing it as a better alternative to paying off debt over a long period of time. This system was abused and as such, the Enterprise Act was introduced.

In short, students may be eligible for an IVA if they meet all the standard criteria that is needed by anyone else. However, any outstanding debt with the Student Loans Company will still stand.

You may have decided that an IVA sounds like the best option for you to clear your debts. However, lots of people don’t find out whether they are eligible or not, and just assume that they won’t be. Naturally, many people that would be eligible for an IVA are missing out on the chance to clear debt, by wrongly assuming that they aren’t eligible for such an arrangement.

So, who is eligible to sign up for an IVA? If you meet the following criteria, the chances are that you will be able to reap the benefits and start paying off your debts:

• To be eligible for n IVA you must be classified as an insolvent. This means that a person cannot meet repayments on any outstanding debt due to outgoings outweighing income.
• You must have a steady source of income, be it through employment or being self-employed. If you rely solely on benefits, you might not qualify for an IVA.
• You must have ‘substantial debts’ that amount to £15,000 or more. Usually, these debts should be owed to at least 3 creditors to be considered for an IVA
• Monthly repayments can vary greatly, but you should expect to repay around £200 each month at least.
• You must be determined to clear your debt and avoid bankruptcy at all cost.

There are several other criteria that you could be required to meet in order to be successful in your IVA application, but you can use these few as a rough guide. The type of debt you have (who your creditors are) can also determine whether your application is successful.

If you’re in any doubt as to your eligibility, simply get in touch with IVA Zebra and we’ll be able to let you know everything you need to know. Don’t just assume that you’re not eligible!

One thing that people often think about when it comes to deciding what the best option is for tackling debt is how their credit rating will be affected. Bankruptcy has drastic, long-term effects on credit rating, but what about IVAs?

Many IVA specialists will give you long-winded answers as to how your credit rating will be impacted, but the short of it is that your credit rating will be affected, but by no means as severely as it would after being declared bankrupt.

However, the impact on your credit rating due to entering an IVA could be far less than if you continue to let your debts spiral out of control, until you finally have no other option but to file for bankruptcy.

IVAs are generally entered into for terms of no more than 5 years. When the 5 years is up, the outstanding balance will have either been paid off or will be written off by debtors. The fact that you entered an IVA will usually appear on your credit history for a maximum of six years, making it more difficult or more costly to obtain credit during this time.

However, if you manage to meet your monthly IVA payments on time, you will actually be repairing any damage that appears on your credit history. Because you have shown that you are capable of keeping up with payments could be beneficial in the long term.

Upon completion of the IVA, the insolvency practitioner will present you with a Certificate of Completion. This will be sent to the relevant credit reference agencies and will be updated on your records to show that your financial problems have been resolved or satisfied. By this point, if no other debts have been accumulated, you will be given a clean bill of financial health.

The cold winter is closing in and for many people that means only one thing – a hike in energy bills. Keeping the home heated can be costly and the price of fuel has seen significant increases over the years. The outlook is grim, with many households caught in the vicious cycle of fuel poverty.

‘Fuel poverty’ is defined as a household that spends 10% of their income on keeping the home in a ‘satisfactory’ condition. There are three main factors which determine whether a household is classed as being in fuel poverty: the cost of energy, the energy efficiency of the property and household income.

The government recently announced that unemployment in the UK has reached a 17year high, so it can be assumed that high levels of unemployment have affected average household income. Together with increasing fuel costs, people are forced to search for extra cash to cover the costs, largely through obtaining credit.

In 2009, over 4million households were classed as being in fuel poverty, and the figure has increased substantially since. Obtaining more credit is the only way that some people can afford to keep up with the rising energy costs, and this means that people are being driven into debt. It’s a downward spiral that is affecting all too many people.

IVAs are becoming an increasingly popular choice for households who can’t keep up with debt repayments. Such measures are a great way to deal with the affordability crisis that has stricken the nation as monthly repayments can be reduced, interest rates are frozen and any outstanding debt can be written off after five years or less.

Most people have heard of bankruptcy but actually know very little about what it actually is. Bankruptcy is an option for people who are in serious debt and not in a position to repay it. However, bankruptcy is by no means an ‘easy way out’ of debt, which many people assume it is.

In a nutshell, bankruptcy is a process that can be started at the request of the creditors and/or the debtor. Once a bankruptcy order is passed, the assets of the debtor become the responsibility of an Official Receiver or a licensed Insolvency Practitioner. The person in control is responsible for uncovering all assets and distributing them accordingly amongst the creditors. All debts are written off and creditors are prohibited from contacting you to recover the debt.

The obvious benefit of this option of dealing with debt is that all debts are written off. However, the cons are numerous and only highlight why this should be chosen only as a last resort.

Once the order is passed, you lose control of all assets, meaning that personal belongings are at risk, including your family home, car etc. The fact that you have been declared bankrupt will be made public in your local newspaper and you will have this noted on your credit rating for several years, making it hard to obtain credit in the future.

Some occupations carry restrictions with regards to being declared bankrupt, meaning that you may find it hard to find employment in certain areas or the chance of promotion could be hindered. Until you have been discharged from bankruptcy you cannot act as the director of a company and you will not be able to take part in the promotion, formation or management of a limited company without prior consent of the courts.

Debt management plans are one of the options that you have when making the all important move to clearing debt. Whereas IVAs are a legally binding agreement, a debt management plan is an assessment of outgoings and income and then making an informal agreement with creditors via a debt management representative.

Individuals can attempt to negotiate a debt management plan themselves, but creditors will take the plan much more seriously if it comes from a professional adviser. The representative will take care of the negotiations and will work out an affordable plan for monthly repayments. All payments will be made directly to the representative and they will distribute the money amongst the creditors.

The advantage of choosing a debt management plan is that interest rates are often frozen or even cut to allow for more affordable repayments to be made. The repayments will be much better suited to your current financial situation. Debt management plans can be expensive in the long run, with many agencies charging up to 15% of the regular payment as the fee.

The plan will arrange your debts in order of priority, often with utility bills and any debt that can affect essential items being placed at the top of the pile. If your debt is only temporary and your financial situation looks set to improve, a debt management plan could be worth considering. However, if your financial situation doesn’t look like it will improve, debt management plans could actually worsen your situation through having to pay the fees on top of your existing debts.