Category Archives: Debt Facts

  • couple calculating finances

    Debt Relief Order (DRO) – Changes to Qualifying Criteria

    Written by Niall Davison

    New changes to DRO criteria from June 2021From June 29 2021, new changes were made to the qualifying criteria for Debt Relief Orders (DROs). They included:Raising the maximum  debt level for DROs from £20,000 to £30,000Raising the maximum asset levels from £1,000 to £2,000Raising the maximum motor vehicle value level…

  • mortgage debt

    Can You Get a Mortgage With an Outstanding Debt?

    Written by Will Lyon

    In a word, yes. Regardless of the myth that arrears of any kind will ruin your chances, you may still be able to get a mortgage whilst having an outstanding debt. When applying for a mortgage, you’ll need to come across as attractive as possible to lenders. You might think…

  • Can you Get Legal Aid for a Divorce?

    Written by Tom James

    What is legal aid?Legal aid is money used to help support the costs required for legal advice and representation in court. This includes tribunals and family mediation. Whether you are eligible for legal aid is dependent on your individual case and financial situation. Who can get legal aid?Legal aid is offered…

  • Do you Pay Tax on Redundancy Pay?

    Written by Tom James

    Redundancy can be a difficult time, especially if you loved your job and it was bringing in a suitable income for your lifestyle. Find out how redundancy can affect you when it comes to tax and other factors. What is redundancy pay?If your employer informs you that your job is no…

  • debt-and-bankruptcy

    How Much Debt do I Need to File Bankruptcy?

    Written by Tom James

    What is bankruptcy?Bankruptcy is a debt solution suitable for people who cannot pay outstanding bills to their creditors on time. When an individual’s total debts are bigger than the value of their assets, they will be deemed insolvent and in a position to apply for bankruptcy.If you declare yourself bankrupt, you…

  • christmas

    How to Save Money This Christmas & Avoid the Debt Hangover in 2020

    Written by PayPlan

    Christmas is a time when spending can easily get out of control. Even if you haven’t been extravagant, it takes a lot of planning and budgeting to avoid the January Christmas debt hangover. In January last year, around 7.9 million people said they were likely to fall behind with their finances…

  • credit score

    How often does your credit score change?

    Written by PayPlan

    Your credit score is very important; it’s essentially the first thing that any potential lenders are going to look at when deciding whether or not you’re a reliable person to lend money to. If you’ve got a good score, you’ll probably qualify for better interest rate deals on your mortgage…

  • What’s the Difference Between APR and AER?

    Written by PayPlan

    It’s easy to feel overwhelmed by the amount of technical terms in the money world, ‘APR’ and ‘AER’ for example. The two get tossed around a lot together, so it’s important to know which is which. What is APR? APR stands for Annual Percentage Rate. It takes into account the…

  • What is representative APR?

    Written by PayPlan

    Whenever you apply for a loan or finance, you’ll come across the term APR, which stands for Annual Percentage Rate. If you borrow any money, the APR is simply the amount of interest that’ll be added to the total amount you borrow, plus some extra costs– simple, right? Where this…

  • Can An IVA Take My Pension?

    Written by Will Lyon

    If you’re currently in an IVA and are over 55, you may be able to use your pension to pay off your debts. It’s unlikely that your pension will be explicitly taken and put into your IVA, but it’s worth getting in touch with your IVA Company to double-check and…

  • Is your pension safe in a Debt Management Plant

    Can a Debt Management Plan Take My Pension?

    Written by Will Lyon

    What is a DMP? A Debt Management Plan (DMP for short), is a way for you to pay back your unsecured debt in manageable instalments. DMPs are one of the most common debt solutions in the UK, and are authorised and regulated by the Financial Conduct Authority. Should I be…

  • How Effective Are Debt Management Plans?

    Written by Will Lyon

     What is a DMP? How effective are Debt Management Plans? A Debt Management Plan (DMP for short), is a way for you to pay back your unsecured personal debt.  Usually set up and managed by a debt management company or a debt charity, they are authorised and regulated by the…

  • Will An IVA Affect My Citizenship?

    Written by Will Lyon

    Why would an IVA affect my citizenship? When applying for British citizenship, why would an IVA affect my citizenship? Well, upon applying, the government will assess whether or not you have ‘good character’. This is their measure of deciding if or not you’d be a beneficial and law-abiding citizen. Within…

  • What is a CCJ

    What is a CCJ?

    Written by Sam Critten

    A County Court Judgement (CCJ) is a court order that can be awarded against you if you live in England, Wales or Northern Ireland. The purpose of a CCJ is to get you to repay money that you owe. Will a CCJ affect my credit rating? Unfortunately, a CCJ will…

  • debt management plan

    How successful are IVAs?

    Written by Sam Critten

    What is an IVA? An IVA (Individual Voluntary Arrangement) is a debt solution whereby you pay back your unsecured debts to your creditors in monthly repayments usually over a 5 to 6 year period. If your IVA successfully completes, the debts included in your IVA will be written off and…

  • How are IVA payments worked out?

    Written by Sam Critten

    What is an IVA? An IVA is usually a 5 to 6-year debt solution designed to help you write off the majority of your unsecured debts through regular monthly repayments. You will work with a debt advice provider (such as PayPlan) to go over your finances and they will talk…

  • Warrant of control

    Is it Legal for Debt Collectors to Call Family Members?

    Written by Sam Critten

    Creditors will use an array of different tactics to try and recover money if you owe a debt to them. Repeated phone calls, automated emails, endless letters reminding you of the consequences of not paying…the list goes on. If these don’t work, then another tactic they might use to get…

  • What to do if you've lost your job and are in debt - PayPlan

    Does a DMP Affect Your Mortgage?

    Written by Sam Critten

    A Debt Management Plan (DMP) is a debt solution that doesn’t include secured debts, which are debts secured against property that you own. This includes things like cars (auto loans) and property, meaning that if you’ve got a mortgage your DMP won’t include your mortgage repayments. I’ve already got a…

  • Can I Get a Mortgage With a Trust Deed?

    Written by Will Lyon

    A Trust Deed is an arrangement between you and your creditors to pay off your unsecured debt. Trust Deeds are sometimes referred to as a ‘Scottish IVA’ (IVA meaning Individual Voluntary Arrangement) as they’re not available in other parts of the UK. There are stark differences between them however. For…

  • debt management plan

    How do debt management companies work?

    Written by Sam Critten

    When you’re in debt, it can seem like the whole world is against you. Letters from your creditors asking for money, constant phone calls asking when you’re going to pay off your debt, emails every day asking when you’re going to make up for your missed monthly payments…not many people…