The Debt Relief Order came into being in the UK on 6th April 2009. To qualify for a Debt Relief Order (DRO) you must be able to show the following
• Be unable to pay your debts;
- Have unsecured debts of less than £15,000;
- Have assets of less than £300;
- Have surplus income of less than £50 per month, as defined using a financial statement;
- Be living in England or Wales, or for the last three years have been resident or carrying on business there.
- Not have an existing Bankruptcy Restrictions Order,Bankruptcy Order or Individual Voluntary Arrangement (IVA) or have had a Debt Relief Order in the last six years.
Man, at the moment I am sooooo tempted to look at house refinancing so that I can lower my mortgage rate. With interest rates are dropping like a stone, am I being a fool to consider remortgaging at attempting to take advantage of the lower rate. I don’t know if my credit history will stand up the scrutiny of the mortgage company, especially as I’m gonna be trying to remortgage an apartment and not a house, so there’s issues with leases as opposed to owning the house and the land outright. Do you think this will matter when I go for the application?
Is it your aim to start 2009 with no debts? Of perhaps you want to be debt free by the time it ends. This is a great resolution to have. Being debt free helps you to feel free. It’s a wonderful feeling to know that you don’t owe anyone any money. There are no creditors, debt collectors, bailiffs knocking at your door. You can sleep peacefully in your bed knowing that the postman is only going to drop regular utility bills, no letters from creditors harassing you for money. Debt reduction is the only way to do this, you know it makes sense.
Just a quick one today to let you know that it is important that you don’t ignore the symptoms that alert you to the fact that you have a debt problem. If you are to triumph in your debt reduction plan, you need to confront the problem head on and resolve the issues that have got you to the point where you are feeling unable to cope.
Man, creating a personal budget is a truly boring job for those of us who hate doing things like working out figures, averages and such like. It is a very important part of our debt reduction strategy however, to create a personal budget that gives a true reflection of the state of our finances.
This site is all about finding ways to pay off debt so that you can maintain a stress free lifestyle without the worry of debt collectors sending you letters, ringing your phone or worse, knocking on your door. A surefire way to throw a huge spanner in the works and derail your debt reduction plan is to spend more than you earn. If you do spend more than you earn, you run the risk of getting caught up in a debt spiral.
The most important step you can take to becoming debt free is to begin by reducing your monthly outgoings. This is an important step towards debt reduction, but you cannot do this without first knowing what your monthly outgoings are. So first things first you need to list all the things that you spend money on each month.
This can be a daunting task if you are not an organized person. In our last article we wrote about how it is important to pay off debt, however you cannot truly get to grips with your finances until you have taken this step. It is important to know where your money is going. You need to know who you are paying and how much you are paying them in order to being the process down the road to successful debt reduction.
Paying off debt is very important if you want to live a happy, healthy and stress free life. There is no better feeling than when you know that no one can call or write to you asking you for money that you owe them. Taking the right steps towards debt reduction will help you to get to this lofty, but achievable goal of becoming completely debt free
I was in the bank yesterday and a gentleman was paying two months mortgage payments. He was I would say a young fifty something, but I overheard him tell the bank teller that he only had one more month’s mortgage payment to make and then no more.
I was happy for him. The mortgage is usually the largest payment we make monthly, and is usually the largest debt that most people owe. Being able to complete the payments on a loan that lasts for anything from 15 to 30 years is great.
