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debt solutions

Financial, Financial Services, Home Equity, Loans, Money, Mortgage

Abacus Financial Continues to Expand In Uncertain Economy

Abacus Financial, the national expert in the resolution of distressed commercial real estate borrowers and operating companies is extending its purchasing campaign at an unprecedented pace. Having acquired and sold hundreds of apartment, industrial, office, hospitality, warehouse, single family residential and retail properties in the last 30 years, Abacus knows the ups and downs of real estate cycles and is uniquely positioned to help property owners and investors out of their negative equity predicament.

While countless real estate operating companies and investors are faced with maturing loans and the worst real estate market in decades, Abacus is actively seeking to purchase distressed properties and portfolios, regardless of delinquencies, negative equity or eminent default.Abacus provides a way out for owners who are experiencing the daily nightmare of overwhelming financial obligations and a pervasive lack of liquidity. Abacus Financial offers owners, investment groups, developers and real estate investment funds what may be the best opportunity for relief and financial salvation – purchasing each distressed property or portfolio for a price greater than the existing loan(s), regardless of current outstanding debt balance or current market value.

Abacus Financial’s execution will relieve the daily calls from irate investors and lenders. The strategy will also preserve the coveted capital gains treatment to be realized from a sale and avoid the ordinary income that could arise from debt forgiveness. At a time when it is more likely than not that capital gains rates will increase in 2011, NOW is the time to take advantage of this unique exit opportunity.

Abacus Financial is ready, willing and able to solve distressed real estate problems regardless of property type and location. Nationally recognized as a solutions driven private real estate investment workout firm, the principals of Abacus firmly subscribe to the ages old maxim: “solve a difficult and challenging problem, and all who participate shall prosper”.

In an industry that has no room for failure, Abacus has developed fast and efficient large scale equity solutions for over 30 years by working with owners and investors to solve their negative equity situations. For more information please visit http://www.abacus-financial.net or call (213) 260-4811 and speak to one of our seasoned acquisitions specialists.

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Debts, Financial, Financial Information, Investment, IVA, Loans, Money, Personal Finance, Profits

Consumer Price Index Rise Hits UK Savers Pockets

With bank rates predicted to stay low for the next 12 months, savers are in an increasingly tricky situation, according to personal finance website MoneyStand.co.uk.

As the Consumer Prices Index (CPI) is often greater than the savings account interest rates, MoneyStand.co.uk believes some individuals are actually poorer in real terms by keeping money in certain accounts. The UK website, which focuses on giving advice and information on personal finance, debt solutions, and IVA, has stated that simple and well thought out decisions can make all the difference to consumers in these instances. These are particularly testing times for those who live off the interest of their accumulated wealth to subsidise their pension.

Due to the low interest rates affecting most banks within the UK and the erosive affects of rising inflation, individuals with savings are feeling the brunt of the economic downturn. Even with substantial savings, British savers are missing out on a solid return on their investments once tax is taken into account.

With the Consumer Prices Index rising to 1.9 per cent, basic rate taxpayers need their banks to provide a minimum savings rate of 2.375 per cent before seeing any real return on their investments, and higher rate tax payers need a sizeable 3.166 per cent to see a return. In reality, currently only 9 out of 744 variable rate savings accounts available in the UK actually offer an interest rate higher than this. Compared with November, when 69 out of 744 accounts paid above this rate, experts argue that banks are profiteering at the expense of their customers, warning that the situation will now get even worse for the basic rate taxpayers.

Following a widespread media campaign for better deals for UK savers, the UK government has promised to start taking action against these low yield savings accounts. Despite these claims, Moneystand.co.uk suggests that UK individuals will soon have almost no reason to save.

Founder Matt Spencer said, “Due to the worsening interests rates offered by the banks, we have approached the stage where taxpayers are better off investing their money into gold bullion than they are with savings accounts.”

“Due to the Consumer Prices Index rising beyond economists’ expectations from 1.5 per cent to 1.9 per cent last month, basic rate taxpayers will also feel the knock on effects of the increase for some months to come. Economists have attributed this to amongst other things, rising fuel and energy costs.”

Personal Finance weblog MoneyStand.co.uk has been providing unbiased personal finance, IVA and debt related information since early 2008 specifically to help people through these testing financial times. The authors realise people are facing particularly pressing financial times and seek to alleviate this where possible by providing clear and easy to understand information.

“In times of recession individuals and families often overlook simple financial decisions that can make huge differences to their financial health.” Matt Spencer explained, “Our aim is to highlight and offer financial advice on these sensitive topics.”

For the latest financial news and advice on IVA, debt and insolvency visit our personal finance blog, http://www.moneystand.co.uk.

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Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Loans, Money, Personal Finance

Gregory Pennington reminded Consumers That Tackling Their Debt Problems Is More Important Than Ever In An Economic Downturn

Responding to recent debt-related comments from Nick Clegg, Leader of the Liberal Democrats, debt management company Gregory Pennington reminded consumers that tackling their debt problems is more important than ever in an economic downturn.

New analysis, states the Liberal Democrats’ website, reveals that personal debt has risen by a total of one trillion pounds in the past eleven years – a startling ten million pounds for every hour the Labour government has been in power. Repayments to that collective personal debt stand at almost £95 billion per year, or £3,000 per second.

“Much of that debt, of course, is in the form of mortgage debt,” said a spokesperson for the debt management company. “According to the latest figures from the Bank of England (Lending to individuals: September 2008), individuals now owe a total of around £1,460 billion – and a full £1,220 billion of that total is secured against dwellings.”

“Mortgage debt is still a serious issue, with many homeowners having over-extended themselves in order to get a foot on the housing ladder. Even so, taking on a debt to acquire an asset is fundamentally different from borrowing in order to finance a lifestyle, or to pay for food, gas or petrol, as many people have grown used to doing in recent years.

“After all, the vast majority of non-homeowners still need to make monthly payments, in the form of rent. In other words, a mortgage debt needn’t actually add to an individual’s monthly financial burden – in fact, their monthly mortgage payments may well cost less than the rent payments they would need to make to live in a comparable property.

“Even so, Mr Clegg raises some valid points. Britain’s level of personal debt is, as he puts it, ‘unrivalled anywhere in the world outside of the US’, and this can be particularly dangerous in the context of a global economic downturn. Clearly, people with higher levels of personal debt are more at risk of running into severe financial problems more or less as soon as their income drops. People with little or no debt are, in general, much better placed to cope with any financial problems they may encounter as a result of the global downturn.

“As a debt management company, we specialise in debt management plans that help people bring their unsecured debts under control. But debt management is by no means the only way of coping with (and reducing) high levels of unsecured debt. People with debt problems may find they have a range of debt solutions to choose from, and should talk to a professional adviser as soon as possible – the sooner they do this, the more likely they are to get through any financial problems that may lie ahead.

“In the longer term,” the spokesperson for the debt management company concluded, “we wholeheartedly support Mr Clegg’s call for financial literacy to play a much bigger part in education. As he says, ‘maths for life is more important than trigonometry for most people’ – financial education is clearly a key part of helping future generations avoid the kind of debt problems that so many of today’s adults are facing.”

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Bankruptcy, Checking & Savings, Financial, Financial Services, Financial Solutions, Loans, Money, Personal Finance

Shrinking Disposable Incomes Underline The Need To Cut Back On Spending And Seek Debt Advice When Necessary

Following a survey from comparison site uSwitch showing that disposable income had dropped for the first time since 1997, financial solutions company ThinkMoney.com has stressed the need for consumers to cut back on their spending and, when necessary, seek expert debt help or advice.

Released at the end of August, the report related that UK households are £2,500 worse off this year than in 2007 – that the average disposable income had shrunk by 15% in just 12 months.

In theory, ‘Disposable income’ means money that’s available for discretionary spending – the part of a household’s income that’s left after paying for taxes, social contributions, mortgage / rent, fuel, food, transport, education, etc.

“Disposable income, therefore, must cover everything else, from socialising to buying magazines, computer games and so on: basically, the things that people actually like to spend money on,” said a spokesperson for ThinkMoney.com. “But the word ‘disposable’ can be misleading. The average household disposable income may be £14,520 (28.4% of gross total income), but how many households have £280 per week to spend in whatever way they see fit?”

“Figures from the Bank of England show that around 230 billion pounds of the UK’s ‘personal debt mountain’ is not secured on dwellings. Payments to unsecured debts (credit cards, personal loans, overdrafts, etc.) come out of a household’s disposable income, but they’re nonetheless essential – the consequences of non-payment may not be as serious as missing mortgage payments, but borrowers are still legally obliged to make them.”

The good news for borrowers is that such payments may, in certain circumstances, be negotiable. With the right debt solution, they could reduce the interest rates they’re paying, or even arrange for some of their debt to be written off. They may also, if they can’t make their repayments, be able to reduce the amount they’re paying each month – something which this survey indicates may be particularly appealing right now: “Anyone who was devoting a large part of their disposable income to unsecured debt repayments a year ago is likely to be facing serious problems today, and looking for a way to reduce their expenditure as soon as possible.

“The first thing to do, of course, is take a good look at their spending and identify areas where they could cut back. In many cases, though, this isn’t enough – and this is where a professional debt solution can give them a chance to regain control of their finances.

“Most unsecured creditors would rather renegotiate the repayment terms than try to force the borrower to stick to the original repayment plan when this clearly isn’t an option. Many people ask a debt management organisation to talk to their creditors on their behalf, negotiating a more realistic repayment programme – with lower monthly payments, for example, frozen interest and/or waived charges.”

Should debt management not be an option, there are other debt solutions, such as debt consolidation loans, debt consolidation mortgages and IVAs (Individual Voluntary Arrangements). “Everyone’s different, and there’s no ‘one-size-fits-all’ debt solution. The important thing is to talk to a professional debt adviser before making any firm decisions.”

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Bankruptcy, Banks, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, IVA, Loans, Money, Mortgage, Personal Finance

Ivas Don’t Address Mortgages And Other Secured Debts But They Do Reduce Payments To Unsecured Creditors

Commenting on the rising number of home repossessions, debt consolidation experts DebtAdvisersDirect.co.uk point out that IVAs (Individual Voluntary Arrangements) and other debt solutions could help people stay in their homes.

Of the 45,000 repossessions expected by Council of Mortgage Lenders (CML) in 2008, there were 18,900 in the first half of the year. In the second half, therefore, the CML expects a further 26,000 or so.

“As with any statistical forecast, this figure isn’t written in stone,” said a DebtAdvisersDirect.co.uk spokesperson. “Times are particularly tough for homeowners, but many people threatened with repossession may be able to resolve their situation by talking to their lender, and by taking steps to sort out their finances and free up enough money for their mortgage payments.

“Different homeowners will, of course, need to adopt different tactics to avoid repossession. Some may just need to reduce their spending, while others may need to consider taking in a lodger, for example, or working longer hours.

“But for many, the problem is unmanageable debt. Many people can’t afford their mortgage payments because their non-priority debts are taking up so much of their budget. We would advise anyone in that situation to seek debt help immediately. A professional debt adviser can help them go through their finances and figure out what steps they would need to take to free up the necessary funds.”

Often, those funds are already there: “Very few people know exactly where all their income goes. They may know where they spend large sums of money, but the smaller sums can easily slip through the cracks – and they all add up. This is why so many people find they have enough ‘on paper’, but not in reality. A debt adviser can help them create a monthly budget sheet and track their spending more effectively.”

Some homeowners, however, are facing more serious debt problems. “At a certain point, the monthly debt repayments simply exceed the individual’s ability to keep up – there just isn’t enough money coming in to service the debts and cope with the ongoing bills. Once this happens, they find it’s almost impossible to pull themselves out of debt without professional help. The important thing is to get in touch with a debt specialist as soon as possible, and find out what they can do to help.

“Depending on the individual’s circumstances, the best debt solution could be an IVA. As a form of insolvency that helps people clear significant debts without resorting to bankruptcy, an IVA can be an effective way of reducing their monthly expenditure, freeing up the money they need to make their mortgage payments and start paying off any arrears that have built up.”

An IVA is a legally binding agreement between an individual and their unsecured creditors, which normally lasts for five years. “The individual commits to making fixed monthly payments throughout the IVA, based on what they can afford after taking their essential living expenses (including mortgage payments) into account. If enough of the creditors agree to the terms, they’ll agree to freeze interest, not to take any legal action, and to write off any outstanding debt at the end of the IVA. Like bankruptcy, an IVA helps borrowers make a fresh start, but unlike bankruptcy, it helps them protect their home – they may have to release some equity, but it’s extremely unlikely they would have to sell.”

Yet it’s important to recognise that IVAs are not an appropriate solution to every homeowner’s problems. “Whatever financial issues an individual may be facing,” the spokesperson concluded, “it’s vital they seek debt advice from a specialist offering a range of debt solutions – someone who can help them take stock of their situation, understand their options and identify the best way forward.”

About Debt Advisers Direct
www.debtadvisersdirect.co.uk helps people with financial difficulties, providing debt help & advice and tailor-made debt solutions.

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