What financial help do you qualify for?
By AdFeatures | Tuesday, August 14, 2012, 07:19
Personal debt in the UK is at an all time high. With prices rising for all essential overheads such as food, rent, fuel and public transport without a significant increase in wages, debt has become a common way of life for individuals who do not find themselves on wild spending sprees but simply struggle with the realities of everyday living.
Fortunately, there are a number of ways that you can seek financial help to either eradicate debt or to simply earn enough money to live on. Below is a list of options you may wish to consider when seeking any form of financial help:
Government benefits for families
If you are a family and have a joint annual income of under £66,000 you may be entitled to some benefits which could really help to ease the pressure of modern living. If you are not already in serious debt but are looking for a way to take the pressure off of essential overheads such as food, rent, power and transport then the government may be able to help.
Credit cards can be a very effective way of eliminating the stresses of everyday life and many are available at extremely competitive rates. Again, if you are struggling with your overheads, a credit card can actually help as long as you budget correctly and make sure that it is only used for emergencies.
Most individuals with regular income who do not have a history of going into an unplanned overdraft with their bank are eligible for a credit card. Make sure you consider the type of card you select carefully and if you are worried it will encourage you to spend then seek alternative forms of debt management.
There are several mortgages schemes that have also been set in place by the government for those people who are finding it increasingly difficult to maintain monthly repayments. One of the most popular of these is the government rescue scheme which works with local councils. The council will buy your house (in full or part) and then rent it back to you at a much lower price than you would pay for your mortgage.
Eligibility for this is decided case by case through examining your finances so it is always worth making enquiries and seeing if you are entitled to any assistance.
Individual Voluntary Agreements, with companies such as Harrington Brooks, are designed for individuals who find themselves in serious debt and are unable to repay it.
An IVA will freeze your interest and allow you to set a repayment option over a period of around 5 years. If you find that you can only repay the interest on your debt every month and not come close to repaying the actual debt, then this may be a viable option. Eligibility for this is a debt of around £10,000 and upwards and the ability to pay back at least 150 a month.