The flexibility with an IVA is that you do have to make payments to your creditors but only what you can afford to pay and normally over a fixed term this does require court proceedings but normally you do not have to be present and neither do your creditors if they don’t want to be. You also might not have to loose your home or your possessions and normally is a private arrangement.

Bankruptcy is a lot more serious than an IVA but you are also protected that they cannot take away everything you own to pay off your debts normally a bankruptcy order is a lot more public it will mean you having to go to court and sometimes it is even in certain sections in the newspapers.

I believe now that thanks to new laws in this country that an IVA is so much more flexible and for lots of people an easier and safer option as t offers such great flexibility.

But in saying that I do believe that it does depend on your circumstances and only you can decide what is best and most flexible to suit your individual needs.

Some debt advisors state that the total amount of debt accrued per month in credit cards, loans, mail order catalogs etc., should not exceed any more than 36% of our gross monthly incomes.  This is the maximum target level a mortgage lender will allow while assessing a potential borrower.

What is the best next step to take?

The secret to using debt to your advantage is to make sure that you buy assets which will increase in value.  For example, a mortgage will allow you to live in a nice home with the hope of making a profit from it in the future.  A student loan will allow you to study for a good job which will bring you many financial rewards.

Instead of using credit for profitable purchases like the above, most people use their cards to purchase everyday items which decrease in value the moment that they are bought, for example, food or clothes.  If you do have to revert to your credit card for these goods, you should pay your total balance in full to avoid interest charges.

A credit card should never be used to finance a holiday as a holiday does not appreciate in value.  Add to this a card with a high interest rate and you are dabbling with bad debt.  An ideal debt to income ratio should not rise above 20% of an annual income when calculating personal loans, credit cards, utility bills etc.  Figures that rise above this mark are likely to turn creditors away, even if payments are maintained.

It is essential to draw up a list of income and outgoings. Taking your outgoings away from your net income will give you the figure you have left to meet other needs; it may not be a lot but it gives you a starting point from which to work, and can highlight areas in which you can economise. For example, on a working day, you may wish to buy lunch from the nearest supermarket but this could cost around £5 per day. You could reduce this significantly, actually saving over £1,000 a year, by making the effort to prepare sandwiches at home.

Paying regular utility bills by direct debit saves money because most companies will give you a discount for paying by this method.  Equally, paying bills on time will prevent extra charges being made.  Certain bills, unfortunately, just cannot be avoided because we all need to live to a decent standard

A great way of ensuring that you waste as little as possible is to keep your shopping trips to the minimum; this reduces the temptation to waste money on non-essential items but also cuts down on fuel and transport costs.

You work hard for your money so make it work hard for you.

Debt Counselling

Informal arrangement – You could consider writing to all your creditors to see if you can reach a compromise. Include a timetable of when you will repay them.

Individual voluntary arrangement – This is a formal version of the previously described arrangement. You would need to apply to the court with the help of an authorised insolvency practitioner. He or she would supervise the arrangement and pay your creditors in line with the accepted proposals

Administration orders – If one or more of your creditors has a court judgement against you and if your total debts are £5,000 or less, the county court could make an administration order. Under the administration order, you make regular payments to the court, which will then pay your creditors. While you are paying the administration order, your creditors can’t take any further action against you to get their money, without asking the court first. Also, you will not have to pay any interest on your debts. You will have to pay a fee for an administration order, but this will be added to the money you already owe and not charged separately.

Regardless of what some people say, eBay can be really fun and its a great way to become debt free, if you are in financial difficulties. The bidding frenzy when your stomachs churning in the dying seconds of the auction whether you will win or not. Then there is the rush of actually winning your first item and waiting for it to drop through your letter box.

But, for me nothing can compare to getting the buzz out of making some money, getting those funds into your Paypal account and seeing the fruits of your labour. I even like the wrapping up of the parcels and the trip to my local Post Office, its all part of the eBay experience.

Onto five things most people could sell today, everybody’s different of course but here’s my five ideas, and I might even achieve four of them.

Old junk!

Everybody has junk in the loft, or kicking about their house, it could be anything from old teapots, to an old train set hidden in the attic space, or a pile of old engineering magazines. You should never underestimate the public’s want to buy other peoples tat. Don’t be embarrassed by your junk, embrace it, love it, and sell it! One man’s muck is another man’s brass.

Mobile phone!

Again, if I dug out a drawer or two, I could probably find at least one if not more, old mobile phone. You would be really surprised what people will buy and the price that you get on eBay will often out way most mobile phone recycling companies. However, seller beware, make sure that you clean it out first, you never know what contacts, pictures and messages of a dubious or naughty nature might be lurking in your phones memory.

CD, DVD, Blu-Ray and Books

This is a no brain-er section, if you don’t own at least one CD, DVD, Blu-ray or a Book kicking about that you can live without, what have you been doing for the past 10 years! Have you just been at home watching council television and smoking silk cut extra lights. There is a goldmine to be made with this section, desirable to a buyer and a massive opportunity to clear out that phase you went through when you were into death metal and wearing chainsaws around your neck.

Old Clothes:

I’m not going to expand on this section much, but as long as it’s clean there is a buyer out there for it somewhere. People go crazy for cookie, retro and unusual items of clothing, footwear, handbags and assorted man garments. So get rid of that leather trench coat (see above death metal reference)

The Husband, Wife or Spouse.

Hey its worth a try!

We’ve all seen the ads for IVA, but it’s not as simple as they make out. You have to be realistic about the money you owe, willing to change your spending habits and have to negotiate how much you pay. You will still have people probing all your finances and will have to be prepared to stick to a tight budget.

Make sure you visit a reputable firm to execute your IVA. There are charities such as the Consumer Credit Counselling Service (CCCS) who are much better qualified than those firms who advertise on TV. Plus charitable and voluntary organisations are much more likely to have your best interests in mind and can therefore advise you better.

An IVA (Individual Voluntary Arrangement) is one possible alternative. An IVA must be individually approved but you may be able to keep your assets and is a less drastic means to becoming debt free.

Consider your case carefully, write to all of your creditors requesting that you come to an “informal arrangement”; a payment plan can then be drawn up with each creditor. This will require a severe “tightening of the belt” and that each payment be stuck to.

One final alternative is an administration order. This is only possible when debts total less than £5000 and one creditor has a court judgement against you. One payment a month is made to the court and an administration cost is added on to your total debts. The one payment is split between your creditors and during the period that the administration order is being paid no creditor can take action against you and all interest is frozen.

According to the National Lottery records which were published last week, you are more likely to hit the jackpot with an old-fashioned which people can spell. John and Margaret top the lists of men and female names respectively, whilst James, Peter, David, Michael, Susan, Patricia, Mary, and Linda also stand a good choice of winning.

Ilford, Essex is in pole position for Lotto wins, where there has been a top prize winning ticket among every 6,722 people. Newcastle-Upon-Tyne closely follows Ilford, where there is a winning ticket for every 6,884 people.

The statistics also reveal you are more likely to get lucky on the lottery if you work in construction, administration or management. Taxi and lorry drivers are in with a better-than-average shot at the winnings, whilst chefs, factory workers and shop assistants are also better equipped to strike it lucky. Bankers, politicians and estate agents however aren’t so lucky, statistically speaking, and are far less likely to win.

Other stats include nearly half (49%) of all lottery millionaires have won with a lucky dip, and nearly 40% of jackpot scoopers claim to have received a ‘sign’ that they were going to win. 53% of Lottery Millionaires considered themselves to be ‘lucky’ people, while 92% described themselves as ‘fairly or very optimistic’ in life.

Popular buys for the newly rich include a Mercedes Car, a holiday to the Caribbean, Canada or Australia, a hot-tub, a walk-in wardrobe and a snooker table.

The final stat revealed the most jackpot winners toast their new found wealth with… a cup of tea!
Don’t despair however, if you are not a Peter, from Ilford who drives a cab and has an optimistic approach to life.

To date, the biggest solo lottery winner is Iris Jeffrey, from Belfast, who won a cool £20,100,472 in July 2004.

Not all home improvements add value in the long term. For example, if you put in a new kitchen now, unless the market has started to boom again within the next two years, you run the risk of your choices looking dated. Structural improvements though, such as an extension, loft conversion or conservatory; things which add living space, will always eventually pay for themselves.

Also of course, while you are waiting to start climbing the property ladder again, you can benefit from the improvements you make to your present home. As long as you know that you will be able to cover the loan repayments, housing improvement loans are probably one of the best investments there are in terms of property right now.

Julie Roberts can be seen here with a dollar note for a head. With the reported fees she commands for her films, it wouldn’t be too farfetched to suggest the money has gone to her head would it?

Here, it is difficult to tell if Mr. Bean looks excited or shocked. Perhaps he is a combination of the two. He is on the front of a Filipino peso note after all.

‘King of cool’ Steve Mcqueen is doing what he does best in this mashup. Star of ‘The Magnificent Seven’ was once the highest paid actor in the world; No wonder he looks so at home on the front of a note!

A slighter younger Brad Pitt here, with a $50 wedge for a jaw-line. Nowadays, Pitt possesses a similar scruffy beard. A sign of things to come maybe?

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