You should always avoid debts with your bank where you maintain your current account. This is because your bank can help themselves to money owed to them whether you can afford it or not. (more…)
For many people with debt management problems, a possible way to raise some extra money is to let a room in your home.
You can receive up to £4,250 per year tax free on top of your regular income - just over £80 per week. If you let the room for more than this, you will have to pay tax on it.
You can choose to take advantage of this tax break if you let furnished accommodation in your only or family home to a lodger. (Your only or family home is the one where you/your family live for most of the time.
For more information see rent a room scheme on direct.gov.uk.
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Have you had a good or bad experience renting out a room?
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If you are considering an IVA, ask about Fees.
If the IVA company your speaking to just says “don’t worry about that, the creditors pay for the costs” - ask for a straight, numerical answer.
It is true that creditors pay for the costs of an IVA. However, as our charges to the creditors are lower than most other IVA providers, we get IVA’s approved that would otherwise get rejected. Therefore we can help even more people out of debt than most of our competitors.
For more details see our article on Low Fee Iva’s.
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Have you been stung by fees of £7000+ over the course of your IVA?
Have you had to pay an up front fee to get you IVA proposal considered by an Insolvency Practitioner?
Please share your experience by leaving a comment.
In the debt management and debt consolidation industry February is busiest month of the year.
Apart from those selling Valentines cards, I can’t think of another business where this is the case.
Why February?
Because too many people overspend in December, the credit card bills arrive in January and creditors are on the phone by February.
Plan the presents you need to buy and really think about what that person would really appreciate to receive. Last minute buys are often over expensive to compensate for the lack of thought.
Like everything else, decide upon a budget you can afford without getting into debt or increase current debt. Make a list and stick to it.
You own stuff that is worth more to others than yourself. Cash in on that fact.
Free yourself from emotional attachments to the junk in your home and make a few quid into the bargain.
If something is worth more to someone else than it is to you, then it makes good business sense to sell it. You’ll benefit in other ways as you make more space at home.
This is also a good psychological exercise as it will focus your mind on how much you paid for items, who little value you have had from them and how little they are worth now.
This will help educate you as to the foolishness of spending on things you just do not need.
Leave a comment
What’s the most you’ve earned from selling something you thought was worth little? Please share your experience by leaving a comment.
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