Category Archives: Debt Facts

  • How to save money this Christmas – and avoid the debt hangover in 2019

    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 2018, around 7.9 million people said they were likely to fall behind with their finances that…

  • How a Debt Management Plan (DMP) affects your credit

    Written by PayPlan

    If you’re in a Debt Management Plan (DMP) or thinking about going into a DMP then it is important to understand how this will affect your credit file. A DMP is an arrangement that can be made between you and your creditors which allows you to pay a smaller amount…

  • How an IVA affects your credit

    Written by PayPlan

    An Individual Voluntary Arrangement (IVA) is a legally binding agreement between an individual and their creditors. It allows you to pay back one monthly affordable repayment and the creditors often agree to write off a certain percentage of your debts. Your credit score is a number that indicates to lenders…

  • Which Debt Should I Pay Off First?

    Written by PayPlan

    When your lenders are constantly phoning you, and you have received several ‘final reminder’ letters, you might be losing sleep about which debt you should pay off first. All debts need to be paid eventually, unless you have an agreement with your creditor or they cannot be enforced, although some…

  • Can Debts Be Written Off?

    Written by PayPlan

    This is one of the most common questions that people ask us, and the short answer is ‘when you’ve paid back what you owe’. But if there is no communication between you and your creditors, and six years elapse, the debts can no longer be enforced and are effectively written…

  • ‘Joint and Several’ Liability: Who’s Responsible For Debt?

    Written by PayPlan

    A joint and several liability agreement can apply to mortgages, tenancy agreements, council tax and water bills in jointly-occupied housing, as well as unsecured credit like personal loans. Below, we answer some of the most commonly-asked questions on the subject. Taking out a bank account, loan or credit card with…

  • Is It Better To Have Good Debt or No Debt At All?

    Written by PayPlan

    As well as having a negative impact on your finances, bad debt can leave you stressed and unhappy – that’s why most of us want to avoid at all costs. You may think it’s best to be completely debt-free, but is that always the case? Debts are classed as ‘good’…

  • Am I Still Liable For My Debts?

    Written by PayPlan

    The world of personal finance can be tricky to navigate, and one of the most common questions asked on our forum is whether you’re still responsible for old debts, or ones your ex-partner has racked up. Below, we’ve provided answers to just a handful of your queries. I left the…

  • Will Debt Collectors Come To My House?

    Written by PayPlan

    We’ve probably all seen TV shows where bailiffs turn up at someone’s house, either to evict them or seize their possessions to repay their debts. Programmes like these often make for difficult viewing, but they are particularly distressing if you are in a similar situation yourself. Creditors, including landlords, credit…

  • Gambling Addiction & Debt

    Written by PayPlan

    I recently read about a man who has gambled since he was 12 years old. He believed he needed to gamble in order to survive. He is now older and married with 2 children, yet he still gambles. His wife does not know that he gambles and if he loses…

  • Will debt collectors sue?

    Written by PayPlan

    Living with money worries is often the cause of sleepless nights, especially if you’re concerned about debt collectors taking you to court. When you fall into arrears on a credit card or loan, the creditor can launch legal proceedings against you to recover their money along with any interest that…

  • What Happens to Personal Debt After Death?

    Written by PayPlan

    Most of us would like to think that our relatives are going to be looked after when we’re not around anymore, or at the very least, be sure they won’t inherit any debts we might have built up over the years. But the idea that personal debts ‘die with us’…

  • What’s the difference between debt and credit?

    Written by PayPlan

    There are times when you may feel like you can’t get away from credit card and loan advertisers, offering no end of tempting deals. But behind the slogans, it can be difficult to work out whether a product is right for you. Financial terminology is often confusing, so we’re going…

  • The Facts: PPI and Debts

    Written by PayPlan

    What happens with PPI if I’m repaying my debts?PPI or Payment Protection Insurance mis-selling claims relate to insurance that a creditor may have mis-sold to an individual. If you were incorrectly sold Payment Protection Insurance, you may have the right to claim it back, before the deadline of 29 August…

  • Can you inherit debt from your parents?

    Written by PayPlan

    The loss of a parent is an emotional, trying time but the worry of having to deal with their debts can make this period even harder. However, it’s important to note that when a person dies, their debts are paid off via their estate – this means their savings, investments…

  • Changing energy suppliers when you’re in debt

    Written by PayPlan

    We all want to pay less for our energy – especially in the winter months – but what if you’re looking to change energy supplier but still owe them money?Whether it’s a new debt from your most recent bill that cost more than expected or an older debt that you’re…

  • The Facts: DMPs

    Written by PayPlan

    What is a DMP? A DMP, Debt Management Plan, is an informal arrangement between you and your creditors, managed free by PayPlan. To pay your debts back, you pay one single monthly payment, as part of your plan, which goes toward repaying your unsecured debts. There is no guarantee that…

  • What is a third party debt order?

    Written by PayPlan

    As soon as you hear the word court, alarm bells may start to ring. But if the court system is involved in your debt struggles, it’s important to understand the facts and keep a level head.If you are late on debt payments, your creditors may obtain a County Court Judgment…

  • What is Britain’s attitude to debt in 2017?

    Written by PayPlan

    We wanted to know exactly what the people of Britain thought about debt. And so, we asked 1,200 people about their thoughts on the matter, to discern just how serious our debt problem is or if we’ve got things under control.We asked them questions about debt and whether they considered…

  • Self-employed IVAs: Frequently Asked Questions

    Written by Chelsea Potter

    A self-employed IVA is a debt solution tailored for the self-employed. This week’s blog post looks at what a self-employed IVA is and answers the most common questions we get asked about how this debt solution works.