If you are experiencing serious debt problems then you are very likely worried about the prospect of someone (possibly a bailiff) calling at your home to take away all your goods and sell them. Most people with a debt problem in the UK (unless it is a debt arising from non payment of fines/taxes) will not be visited by a bailiff, as the creditor will have to go to court to get a County Court Judgment (CCJ) before a bailiff can be instructed. Even once this has happened you will have to fall behind with your agreed payments before a bailiff (possibly) comes to call.
On a normal unsecured debt you are more likely to see a debt collector, but they have no powers whatsoever. You are perfectly entitled to slam the door on them and demand they leave your property! Any persistent attempts to contact you (standing outside shouting, knocking on the door constantly) could be construed as harassment and would therefore be illegal.
If you are unlucky enough to be visited by a bailiff then you will want to know…
Bailiff Rights of Entry – What Are They?
The first thing you should do when confronted by someone saying they are a bailiff is to get them to prove who they are. They must be able to provide some evidence of their identity and their instruction to collect a debt that you owe. If they don’t have this then they are just a debt collector, and can be sent packing as described above.
If they are a bailiff then unless they are recovering a tax debt and have obtained a court order, they are not allowed to force there way into your home. They cannot push past you when you stand at an open door. They have to gain “peaceful entry” to your home which means entering through an unlocked door or open window (or being invited inside by you). If they visit the house when there are only children present (younger than 18) then they must leave. It is very important to realize that your relationship with the bailiff and their powers to enter your home are massively changed if you let them into your home (or they manage to get in through an open window or unlocked door. If you keep them out then they have no powers. Once they have gained peaceful entry then they can:
-Make a list of possessions to be seized (a walking possession order).
-Break into locked areas within your house.
-Return at a later date and break into your home to gain access to the goods listed on the walking possession order.
Letting a bailiff into your house is a disaster and should be avoided at all costs. Don’t fall for any trick regarding using your phone/toilet etc. as it could have terrible consequences.
How do You Resolve the Situation?
You need to get the debt out of the hands of the bailiffs and back with either the courts or the creditor. To do this requires urgent and skilled money advice from the Citizens Advice Bureau or similar debt charity. Remember that the rules regarding unsecured debt mean that you should only have to pay an amount that you can afford (after allowing for essentials) so negotiating to pay your debt by installments should be a lot less traumatic than being visited by bailiffs.
By: Neil Douglas-Campbell
Taxpayers who are unable to pay their IRS tax debt in full could get relief and settle their IRS tax debt for less than they owe through an offer in compromise or a partial pay installment agreement with the IRS.
What is a Tax Debt?
Simply put, an IRS debt is the amount of taxes owed during a certain tax period that should have been remitted to the IRS. Paying an IRS tax debt should not be a difficult task, it is closely and religiously monitored by the IRS. Employers, in particular, should routinely calculate and withhold payroll tax from their employee’s paychecks and properly forward them to the tax agency. People who have their own businesses are also subject to such IRS debt known as self-employment tax, and should be able to manage and pay these taxes in a timely manner, so as to avoid getting penalized by the IRS.
Federal or State Tax Agencies
Federal tax agencies such as the Internal Revenue Service (IRS) have a system of determining the total amount of tax debts for a tax year/season easier because they receive annual return reports which reflect the value of money that a certain taxpayer makes as wages, self-employment or investment income through W2’s and 1099’s. This way, it is easy to compare such figures with the total amount of taxes paid for the duration of the filing period. Whenever the amount of paid taxes is in excess with the amount owed, refunds are granted to the taxpayer as they file accordingly. However, if the amount of collected taxes is less than the actual IRS debt owed, the taxpayer is still responsible for compensating the IRS or the State with the outstanding debt.
Unresolved IRS Debt – how to get tax relief
Unresolved tax debt is taxes on earned income that are not calculated nor remitted properly. This error, though not necessarily intentional, will still come to the attention of the IRS, usually during the filing of the annual returns. This can put the taxpayer in a situation where he is faced with a greater amount of tax debt than he expected. This creates more stress and pressure on the individual to pay off the tax debt particularly since the amount is more than he can really afford.
Many tax agencies, however, are willing to resolve unpaid tax debts through different tax relief programs especially when the taxpayer is no position to pay the total amount owed with interest and penalties. Tax settlements can also be negotiated between the taxpayer’s power of attorney and the taxing agency like the IRS or the State. It is fairly common; that the tax agency imposes a tax levy like a garnishment on the taxpayer’s wages; also a levy on the taxpayer’s bank account is a common practice by the IRS and or the State.
In more severe cases when the taxpayer ignores the IRS for a long period of time, the tax agency can seize some assets in order to collect and settle the IRS debt owed. This usually happens when the outstanding tax debt is not resolved and the taxpayer is uncooperative about settling their tax debt.
Settle your IRS debt and get relief today
If you are unable to pay your mounting IRS debt, then you most certainly need the assistance of our IRS debt relief services. Free yourself from such tax debts and be guided on how to prevent any other tax problems that may catch you off guard in the future. With expert advice and proper guidance, you would surely be free of any tax problems.
By: Mike Habib
Having debts is a problem that most people face. Oftentimes, the people who fall into debts are those people who do not have control over their spending habits. They realize that they are in deep financial trouble too late and have a hard time to get out of it.
Because many people are heavily in debt, there are many debt help services that offer free debt counseling. These services are provided by credit counselors which help the person in debt devise a way to plan his budget, taking into consideration his income, assets, existing debts and expenditures. The method of debt help that these counselors use is to assimilate all the individual’s debts so that it will be easier to pay off in affordable monthly installments. And because these counselors create a planned budget, there is a lower chance for the individual to fall into debt again.
Most of us have credit cards and while it is such a status symbol to hold these credit cards, more and more people are getting into trouble because of the ease of the use of credit cards. Having a credit card equals having debts, and while debts are not entirely bad, having a lot of them can be damaging, especially if repaying them comes with a high interest rate as well.
If you are one of the people who suffer from a multitude of credit card debt, the best way to eradicate your debts is to avail of a credit card debt relief service. A credit card debt relief service has several options for you to be able to solve your debt worries. These options vary from getting a debt consolidation mortgage to a debt consolidation program. Cash flow of the individual is also taken into consideration when planning the repayment of the debt.
It is a fact that there are some debt help agencies that will charge a fee for their services. However, if this will only lead you to more debts to pay for their services, going to the internet for free debt help services will do you good. Internet sites that provide this type of service have different resources like sample letters, creditor’s databases, strategies to settle debts, and other information to help you pay off your debt. Credit repair guides are also available online to help you improve your credit rating. Some would even give you a guide in choosing the perfect credit repair company.
Debt help articles are also a good source for free debt help because these articles are usually written by experts, professionals, and other people who has had experience in eliminating their debts. These articles are often informative as to the legalities of debt issues, laws, etc. There are a few of them that relate personal experiences in which you can identify with and be a turning point to get the financial freedom you’ve always wanted. For sure, when you seek help to solve all your debt worries, you are taking the first step into successfully eliminating the debts in the future. Maintaining a debt free living is very rewarding because you will not spend countless hours worrying, instead you can use these hours to spend time with your family.
By: Denis Darling
Many people in the US, UK and other industrialized countries are burdened by credit card debts, store card debts, unsecured personal loans and bank overdrafts. Are consolidated debts loans the option? These kinds of debts incur very high interest rates and before you know what hit you, you are already in big debt. The other problem with these types of debts is they are easy to get and will land you deeper into debts.
The benefit in a consolidate debt loans is you would be able to pay all your existing debts in one easy monthly payment or settlement. The other benefit of a debt consolidation loan is by securing the loan on property (i.e. your home); you can borrow at a much lower rate of interest and reduce your monthly repayments by up to a half.
There are various types of programs to consolidate debt loans. This type of loan can be either secured or unsecured. Something of important value is used by a secured loan to protect the loan amount. The most familiar sources of security are the home. The risk is less for the lender with the low interest rate. But the unsecured loan is of some risk for the lender.
They charge a higher rate of interest rate and include some restrictions against the borrowing.
If you ever thought that consolidating all your credit cards into one easy loan payment and solve all you debt problems, think again.
There are pitfalls to this type of borrowing. Most people when they realize that their monthly payments are a lot less, they start to slack off and start spending more. If you are one of those, then consolidating your debts might not be the smartest idea. It will actually land you more in debt problems than before. When planning to consolidate all your credit cards and other unsecured loans, make sure you have the right psyche or discipline to go forward with a debt consolidation loan.
The right time to consolidate your debts is when you have temporarily slipped into debt (perhaps due to a change in personal circumstances) and want to get out of debt faster. It can cut your interest rate and your monthly repayments and simplify your finances, putting you back in control.
Be mindful of the tricks too, that the lender will do to entice you to get into their agency or company. Consider the following tricks they do.
They will convey to you a sense of urgency and that you have to do it right now or lose out on it. They will claim that now is the best time to consolidate debt loans because interest rates are low.
They will use the low interest rate now and that sense of urgency to try to get or lure you into doing your consolidation now before the interest rate will go up.
They will offer X amount of percentage discount on the interest rate if your payments are made by automatic payment direct debit from your bank account. This to me is a red flag. Do not give access to your bank accounts.
They will try and ask for your student account number which in most cases it is your social security number. If you give this information to them, they can find your record on the national student loan data system (NSLDS). Here, they can see if you are eligible or not. This is a way for them to make you give your social security number.
My advice, consolidate debt loans when you have the discipline and commitment to improve the management of your debts. Do not forget to bear in mind the tricks employed by the lenders for proper guidance when you do consolidate debt loans.
By: Shellaine Enfesta
This is a book review of “Zero Debt – The Ultimate Guide to Financial Freedom ” by author Lynnette Khalfani.
Do you lose sleep over your credit card debt? If so, then Zero Debt: The Ultimate Guide to Financial Freedom is the book to help you get back to your debt-free life. This book, which Dr. Phil himself has mentioned on his show, is one of the best books for great advice and a proven plan that you can put into action right away.
In Zero Debt, you will discover:
* How to get annoying creditors off your back
* Insider secrets to reduce interest rates or eliminate credit card late fees
* Your legal rights and what bill collectors can and can not do under the law
* The best strategies to clean up your credit report or fix errors in your credit file
* How to make lifestyle changes that will save you money for decades to come
What makes Lynnette Khalfani the perfect candidate for writing this book is that she was over $100,000 in credit card debt herself and got herself out of it in only three years. Khalfani has written valuable step-by-step instructions on how to get out of a financial pothole. The instructions are simple and easy. That alone makes Zero Debt a book you’ll really want to have in your library.
Zero Debt: The Ultimate Guide to Financial Freedom focuses on not only how to get out of debt, but having money for the future. With how the economy is today, this book is timely for all who are in any amount of debt.
By: Richard T. Tyler
In 2005, the average American had $8000 dollars of just credit card debt. Of course, the total amount of debt was much higher once you consider a mortgage, personal loans, home equity loans, student loans and a few bucks from mom and dad. Most people have more than one and in some cases a wallet full of the plastic cards. $8000 is a mountain of debt that most people can barely make the minimum payments on let alone try to figure how to get rid of it. Lets look at some options that will help you eliminate that debt.
Adjusting your payments on a credit card can affect your financial picture in the long term. The minimum monthly payments on credit cards use to be 2% of your total debt. If you have $8000 of debt and you are paying the 2% minimum or $10 which ever is more, prepare to pay that card off for 54 years and accumulate $23,000 in interest. The first payment would be $160 and it would trickle down to $10 as you paid the minimum each month. This calculation is based on an 18% interest rate. If you could maintain that payment of $160 each month, you could pay of the same credit card off in just under 8 years and pay less than $7000 in total interest. Just by maintaining your payment, you can see how you can eliminate much faster.
Credit card companies have doubled the minimum payment to 4% now. This has caused some people to file for bankruptcy since they could barely afford the 2% minimum. Now you have to pay $320 instead of $160 if you are the average American. If you can afford to pay that amount, it will take you less than 3 years to pay it off and expect to pay $2000 in interest. By doubling the minimum payment, you can pay it off much more quickly.
Let us also look at interest rates. It is easy to forget to look at the interest rate when making any financial decision. If you have several federal student loans accumulating interest at 3.5% and you have an equivalent amount of money in the bank, most would want to take that liquid money and pay off the student loans. This would be a mistake because you forgot to look at interest rates of investments. If safe and secure bonds are paying you 5% and you are only losing 3.5% on those loans, please do not pay it off. You can invest and pay the minimums on those student loans and capture that 1.5% interest difference. The same goes for credit cards. Pay off the ones that are higher first. If you have multiple cards, pay the minimums on the lowest interest cards and put the rest towards the highest. Once the highest interest rate credit card is paid off, figure out which card has the next highest interest rate and repeat. Do this until you are down to one card and you should be paying that off quite fast if you do not decrease the total amount that you are putting towards your credit cards each month.
As you can see, the more you pay per month will have an astounding effect on your total payments in the end. The first step is to budget yourself so that you can stop using credit cards, the next is to figure out how much you allocate to paying them off each month. Start by being aggressive on the highest paying cards and work your way down. The effects off paying off that debt will help you breathe easier and know that you are back on the right track.
By: Michael Russell
For anyone who has fallen behind paying their bills, or had their debts turned over for collection, you know what it’s like to get those calls from bill collectors. They call you at all hours at home, call you at work and constantly send you notices in the mail. Is there anything you can do to stop these debt collectors, or at least slow them down? Yes there is.
Under the Fair Debt Collection Practices Act, all debts for personal, family and household, are covered. Debt collectors must abide by the rules set up under this act. Some of the debts this act includes are: car loans, medical bills, credit card debt, personal loans and home mortgages.
A debt collector can contact you over the telephone, by mail, or even in person. They can call you anytime after 8:00 AM and before 9:00 PM. A bill collector can also call you at your job unless you tell them to stop. A debt collector can’t contact anyone else about your debts other than your attorney if you have one.
What can’t a debt collector do?
Every bill collector has certain rules to abide by. They may never: o Harass or abuse you o Threaten you with violence o Use profane or obscene language toward you o Call you repeatedly over the phone just to annoy you o Make false statements or imply they are attorneys or government reps o Make false claims such as you will be arrested if you don’t pay your bills o Use false names or deceive you into believing they are someone they aren’t o Give false information about your account to a credit bureau o Tell you that you have committed a crime falsely o Deposit a post-dated check before the date that is written
What options do you have if a debt collector violates the law?
You can actually sue any debt collector who openly violates the law. You have one year from the date of violation to file a suit in court. And if you win your case, the debt collector may have to pay you money damages, court costs and attorney fees.
How do you report a debt collector?
Anytime you believe your rights have been violated by a debt collector, you can call your states Attorney General and report them. They can assist you in what to do next. The Federal Trade Commission should also be notified about the situation.
How can you stop a debt collector from contacting you?
If you want to make a bill collector stop contacting you, simply write them a letter and tell them to stop immediately. When they receive your letter, they can no longer contact you unless it is to tell you that your creditor is taking some other legal action.
This doesn’t mean that the debt is going away. If you actually owe the money to your creditor, you can still be sued to collect on it.
While no one enjoys getting calls from debt collectors, you don’t have to live with any harassment from them. Knowing the laws and rules can help you make the best of an upsetting situation until you can get your debts paid off and get back on your feet again.
By: Michael Russell
Debt consolidation has been known to be one of the most effective debt relief methods available in the market today. But with it being such a booming industry, how would you know which company to go with? Well read on and learn how to choose a debt consolidation company to help you solve your financial woes.
The best way to get a good company would be through recommendation. If you’ve got a friend or relative who’ve been in the same financial situation before, don’t be ashamed to ask for details about the company they used. When you know people have gotten real success stories from a particular company, you would trust them more.
If you don’t know anyone who’s needed debt consolidation before, then don’t worry because you could always check with the National Foundation for Credit Counseling as they would usually have an updated list of all the debt consolidation companies within your area and the companies listed there are definitely legal as well.
In addition to that, always look out for non profit organizations and stay clear from those that are for profit. Not only are the chances of them being scams, but you’re already in a financial rut so the last thing you should do is sign up with a company that’s looking to make a profit with their services. To check the legitimacy of the company or to know the track records, check with the Better Business Bureau and see if the company of your choice has been involved in any legal issues.
Once you find a company you’re happy with, before putting pen to paper question the representative over and over with anything that lingers in your mind and find out all you can about procedures, routines, process, fees and so on. After all, you’re entire financial life is on the line.
By: Rowena Fernandez
Do you know that most of the Americans live in a state of debt until they die? Many people currently live in poverty after retirement and they are forced to sell their properties to pay off their debts. If you don’t wish to be one of them, you are reminded to pay off your current debt as soon as possible and do not create additional debt in the future.
Below is the step by step approach to guide you to eliminate your debt quickly and successfully.
Step 1:
Assess your financial situation carefully and be honest to yourself. You must know the severity of your situation before creating a realistic action plan. Compile all your debts to get the total amount. Pull out all your loan documents or request loan status information from your home lender, credit card providers, auto loan lender, student loan providers, etc. Make a list of all of the outstanding balances starting from the least amount of debt to the greatest. This list is a very important tool for you to plan your strategy.
Step 2:
Work out your monthly budget to see how much extra fund you have after deducting your expenses. Start paying off the smallest debt on your list while making the minimum payments on others. If your budget is really tight, find out ways to get more funds, for instance, looking for part time job or cutting your monthly expenses on unnecessary items.
Step 3:
Once your first debt is eliminated, you will begin to have more “free” money in your monthly budget. You are advised to repeat the cycle on the next debt until all the debts have been eliminated. The process may take 3-5 years to complete, depending on your total debt amount. You are reminded not to create new debt during the process.
Step 4:
When you are in the process of eliminating your debts, bear in mind that you must set up an emergency fund. It is a saving account which allows you to use the fund during emergency.
In order to succeed, you need to be mentally prepared so that you are able to discipline yourself when you are spending your money. Never give yourself excuses when you want to spend on luxurious items. Stick to your plan in order to meet your objective.
By: Jeslyn Jessy
Debt consolidation loans have been on the rise in recent years, and are just large loans that are used to pay off smaller debts. While these loans come with certain issues to be aware of, they are good for a few types of situations. If you have found yourself in the position of having to pay several different debts off, each with varying interest rates, due dates, and terms, you may find it much easier to consolidate them all into one loan. This will result in one payment per month, one interest rate (which can be significantly lower), and one monthly billing statement.
Another advantage of a debt consolidation loan is that your monthly debt payments will decrease. This means that you will be paying out less money each month, which can free up some of your cash. It also means that it may stretch your debt payments out over a longer period of time.
While debt consolidation loans can be used successfully, and are often quite tempting for borrowers, they can also pose certain risks. You should be aware that this is just moving your debt from many places to one place. It will not eliminate the amount of money that you owe, and it may or may not help you to pay it off sooner. You still need to make regular payments, and work to get your debt under control and paid off as soon as possible.
One of the most common issues that arise with debt consolidation loans is that they often leave people feeling as though they now have less debt. Once people see their credit card balances go to zero, they often feel as though they can go out and charge like mad once again. This will only add to the debt you already owe, which can lead to an extremely serious financial situation.
In addition to understanding that you still have the same amount of debt, you must also understand that you may end up paying more total interest if you opt for a debt consolidation loan. This is because your payments may be spaced out over a longer period of time, which will cause you to pay interest for a longer period of time.
Another key issue you should keep in mind when seeking a debt consolidation loan is to be aware of the risk you are taking. Common debt consolidation loans come in the form of home equity loans, or home equity lines of credit. If you fall behind on your payments, or even default on these loans you can end up losing your home. Credit card companies cannot take your home, or anything else. Be aware of this fact if you tend to have a poor repayment history.
If you have taken all of this information into account and you feel that a debt consolidation loan is right for you, you should take your time and shop around to find the best option for your needs. Some great ways to get started are as follows:
• Visit local banks or credit unions that you already do business with. These are reputable lenders who are most likely to negotiate a fair deal.
• Visit banks or credit unions that you do not already do business with. If you tell them that you are shopping around, they may offer a great deal to acquire your business.
• Search the internet for debt consolidation. There are many online banks and lenders who offer great terms. Use a bit of caution when using this method, as there are also plenty of unscrupulous people on the internet.
In addition to shopping around and searching for the best rates and terms, you should also put a bit of extra effort into properly managing your credit. Loans are extremely difficult to get if your credit is poor. Make sure your credit rating is as high as it possibly can be by making all payments on time, keeping balances low, and not opening extra unneeded accounts.
By: James Kingstrim
