Online Savings Accounts

Online savings accounts in the U.K. offer a substantially larger return on your investment than American savings accounts. In the current state of the American economy, banks aren’t looking for deposits from investors so much. Because of this, the rate of interest you’ll receive in an online savings account is only 1 percent. However, in the United Kingdom, people stand to fair a lot better. The interest you’ll receive on a savings account in the UK can bring you an incredible 2.4%-3.12% in interest.

If you have £20,000 to invest, this equals £624 per year in interest alone. The more money you have to invest, the better you’ll do. This investment strategy should really only be utilized by people with enough money to make it worth it. With forty thousand pounds, you can make a pretty good amount in interest. How does £1,248  per year sound? It should sound good, and can be used to invest more or pay off debt.

Investing in property

Property invesments can be stressful, but can pay off if done correctly.

Property investing is definitely a hot topic. Investing in properties is a source of income for many people living in the U.K. The best part about property investing or getting into it is the fact that you call the shots. You can choose to be a landlord, just the owner of the property, or take part in fixing up properties that can be worth a lot more if you put the time and effort in to make them a dream home. The location of a property you choose to fix up, rent out, or sell for a profit has a lot to do with the value. No one wants to rent or buy a home in a poor area,  so be sure you only choose properties that are in an area where the median income is high.

This will ensure your property values will increase in value as time goes on. Property investing is no easy expenditure, it requires a lot of time and effort, but if you do things right you stand to make a lot by fixing homes up and selling them. Some people don’t want the responsibility of being a landlord, they simply want to fix the properties up in the best neighborhoods and sell them for a profit. Getting into property investing should be done with extreme caution as many other people are wanting to get into the same line of work. There is lots of competition but it has a very high profit potential.

Doing your research and learning to strategize is key. If you have no idea what you’re doing in this line of work, then it may be best to leave it to someone who does. What do you have to offer? Can you purchase the homes and work with people who know how to refurbish the homes correctly? Are you an expert at refurbishing homes already? Do you have a mutually beneficial relationship with people who know how to find the best homes to fix up on the market? This is key, because otherwise you may not find the best deals. Some people are home hunters and can find these deals for you, but you have to provide them some sort of benefit financially. Do thorough research on this topic if you want to really succeed.

Once the forms are all signed an Interim Order will be issued by the court to freeze and impede any legal action from being taken against you by your creditors. A meeting will be organized with all your creditors which you will have to attend where your creditors vote whether or not to accept the IVA. Unlike a debt management plan, an IVA is a legally binding agreement and if the creditors who represent 75% of your debt vote for the IVA then the remaining 25% have to accept it as well as it is law.

Advantages of an IVA

The main advantage of an IVA is that you will be debt free within 5 years and up to 75% of your debt can be written off. Your home and other assets will also be protected and you will also suffer from no professional disqualification, unlike filing for bankruptcy. Of course, you will also be making much lower monthly payments but note that your wage slips are monitored and if you earn more then you will pay more.

Disadvantages

As with anything there is also a flip side. The main problem with an IVA is that you must have a minimum of 15,000 in debt to at least 3 creditors and you will also have to make a minimum payment of 200 per month. If you fail to make your payments stipulated in the IVA then you will automatically be made bankrupt and your IVA will show up on your credit report for 6 years. It is also important to remember that lying on you IVA application is a criminal offence.

An IVA can be a viable way to get yourself out of debt.

IVA actually stands for individual voluntary arrangement, which is a formal agreement between you and your creditors to pay back money that is owed to them, when you are currently unable to adhere to the existing payment terms. Generally an IVA can last around 5 years, with lower monthly payments usually offerd to ensure the repayments are met on time. Because of the formal nature of an IVA, the agreement must be set up by a certified insolvency practioner.

How does the IVA (individual voluntary arrangement) process work?

When an IVA is arranged, you will be asked about your current outstanding debt and other questions relating to your lifestyle, including your employment status, salary and other factors which may help formulate a payment plan to suit you. The idea here is for your IP (insolvency practitioner) to calculate the best possible payment plan to suit your current lifestyle, so that you can comfortable keep on paying your debt repayments.

The IP will then make an application to the court for an interim order, which will prevent any creditors taking legal action out on you in relation to the outstanding debt owed to them. A meeting will usually then be arranged, to discuss the terms of your IVA.If everything goes well, you will be given a reduced payment plan to ensure that your creditors get some of their money back, rather than costly court proceeding to reclaim the whole amount! NB: It is important to not confuse the IVA with a debt management plan, which is not legally binding!

Although an IVA is a very serious procedure (please note: that the process will be noted on your credit rating for up to 6 years!!), it can be a way to help you restructure how you pay your debt.

This website will continue to tell you more about debt managament, IVA’s and other debt relating issues. Please check back regularly for more finance articles!