Debt Solutions

Are you struggling to make ends meet? Has a sudden change in circumstances affected your financial situation? We can help.
As a licensed professional Debt Management Company, Gemstone Financial Management can provide you with practical advice and support on a range of debt solutions. We can advise you and assist you, dealing with your creditors on your behalf.
We will draw up a Debt Management Plan which combines all your unsecured debts into one manageable monthly payment that will pay off your debts to your creditors as part of an agreed repayment programme. One of our team of dedicated and professional account managers will work with you for the duration of your plan to find the most effective debt solutions to help you get your finances back on track.
If you can manage regular payments into your Debt Management Plan, we may be able to arrange concessions from your creditors such as a suspension or reduction of interest and relief from further charges, although such concessions are negotiated from case to case and cannot be guaranteed. This plan may mean that your repayment period is longer and that the total sum paid may be larger. It is important to understand that any delayed or missed payments to creditors, or failure to pay our plan setup fee, may result in your accounts going further into arrears.


Another one of the debt solutions we can offer advice on is the Individual Voluntary Arrangement (IVA). This is a legally binding agreement with your creditors to pay back a percentage of your debts over a set period of time (usually five, or sometimes six, years). A licensed Insolvency Practitioner will assess your circumstances and formalise the agreement which can sometimes require the disposal of some personal assets. After living expenses, the remainder of your income is paid to the insolvency practitioner, who will deduct a fee and then distribute payments to your creditors. Home owners may be required to remortgage their property in the fourth year in order to release equity to their creditors. The initial cost of an IVA is usually the equivalent of 5 months' payments, with an ongoing cost of around £1,200 per annum, as agreed with your creditors. However, you will not need to paythese in addition to your normal monthly payments.
Getting an IVA is not guaranteed, as creditors holding at least 75% of your debt by value must agree to, or not vote against, the IVA. Once the IVA is agreed, creditors cannot add fees or charges to your debt and will not chase you for any further payments. And once the IVA is complete, any remaining debt is written off. Before entering into an IVA you should be sure that you can make the payments, as if an IVA fails the Insolvency Practitioner may have to file for your bankruptcy. We can provide access to market leading Insolvency Practitionerswho can guide you through the IVA process. All costs will be covered by your monthly payments.
Call us today on 0800 112 4313

Gemstone Financial Management Specialists in debt management solutions, debt consolidation, debt solutions , debt help and bankruptcy advice. Call now on 0800 112 4313

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Debt Consolidation

Finding it hard to keep track of multiple debts and creditors? Stung by late payment charges and mounting interest? Wish you could just pay one simple, regular, payment that you can reasonably afford? Debt consolidation may be right for you.
Debt Consolidation is the process of taking out one large loan to pay off all your existing debt. This means that you will have one monthly payment to make, to one creditor. In addition to simplifying your financial life debt consolidation can mean that you can get a lower interest rate on your new loan than the rates attached to your existing debt (for example, the high rates of interest on credit cards). Furthermore, Gemstone Financial Management has experience of successfully renegotiating clients’ payment terms, wining concessions from creditors such as freezing mounting interest and charges.
One of the main ways to get a lower rate of interest on your consolidation loan is through being a home-owner with a good level of equity in your home. This would allow you to get a loan ‘secured’ against the value of your home. However, it is important to understand that by doing this you might put your home at risk if you fail to keep up the payments on your secured debt consolidation loan. You should be certain that you have the ability to make and maintain payments before taking out such a loan. You should also consider that there may be penalties for paying off your other debts early, that this may make the repayment period longer and the total sum larger, and that taking out such a loan may affect your ability to discharge debts in bankruptcy.


If you are considering taking out a consolidation loan, you could benefit from speaking to a professional debt adviser before making any decisions. Consolidation is only one option for people seeking to manage and optimise their finances and debt. At Gemstone Financial Management we offer a range of financial services, and our experienced staff can devise solutions to suit the interests of you, the customer, in managing your finances or finding your way out of debt.
As suppliers of a range of financial services, Gemstone can advise you on a variety of strategies for dealing with financial issues. Based in the West Midlands, Gemstone is a company founded and managed by industry professionals, with a team of staff with a wealth of relevant experience in financial services. We pride ourselves on providing a service with integrity and professionalism. Indeed, we are one the founders and board members of the Debt Resolution Forum (DRF), the largest and arguably most respected trade body operating in the UK advice sector today, which represents firms of debt advisers and solutions providers that voluntarily adhere to standards that go beyond the minimum regulatory requirements. In short, it sets the standards for others to follow.

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Debt Collection Melbourne – Can You Afford To Do Without It?

In these times of economic uncertainty, businesses in Australia face the ever increasing prospect of a overdue accounts and even worse, the complete default of any payment. No business can afford to have its cash flow disrupted in this way and for those who are, the results may have a potentially devastating effect on the business.

Debt Collection Melbourne may, for such businesses, prove the most effective way of preventing of such default by carrying out debt recovery on behalf of these companies. Debt Collection Melbourne is not only an expert at recovering debt, but is also able to offer invaluable advice on how to avoid such difficulties arising in the first place by using their credit management services.
When approached by a prospective new customer, Debt Collection Melbourne will carry out such investigations as to enable you to decide if it would be economically viable to do business with the customer. They will check and verify your potential customers bona fides; determine their previous financial history, particularly if they have a bad record of payment; ascertain whether there has been any record of previous financial litigation, all of which will enable you to have a complete overall financial picture of your potential customer, before starting to do business.


In this respect, it is vital that all your potential new customers are made fully aware of your Terms and Conditions of Trade before you begin starting any business with them. Debt Collection Melbourne will ensure that your Terms and Conditions are specific to your business and will offer you the appropriate protection under such legislations as the Fair Trading Act, the Commonwealth Trade Practices Act and the Privacy Act.
They will also ensure that your Terms and Conditions provide adequate protection in respect of title, warranty conditions, returns, defects and cancellations. Clauses relating to the recovery of collection costs and interest due on late payments, will leave your new client in no doubt as to the consequences of default.
Debt Collection Melbourne, by providing credit management services, will help reduce your exposure to a late payment risk and may well forestall many problems you might otherwise face in regards to defaulting customers. Such services can considerably reduce your business costs, whilst at the same time adding value to your business.
Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Bad debts harm any goodwill between you and your customers which may have been built up over many years.
Despite taking all precautions possible, there will be instances where customers may still default on payment. Debt Collection Melbourne will first assess whether it is financially viable to pursue the debt and then focus on recovering overdue accounts as quickly and as cost effectively as possible. In practice, a "demand" letter is all that is required: legal action is generally a last resort!
Debt Collection Melbourne offer a comprehensive service of not only debt recovery but also credit management which, when combined together, provide your business with the ultimate in financial protection. The outlay is minimal for results that could well save your business from financial collapse.

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Debt Collection – An Imperative Daily Business Function

In recent years, the way in which we undertake our business operations has changed.  It is now more important than ever for businesses to keep on top of their finances, particularly in relation to cash flow.  In order to achieve this, it is essential that you ensure a positive cash flow is maintained by correctly managing your overdue accounts and debt collection.
If you offer credit facilities to certain customers, such as account holders, you must agree at the outset of such credit arrangements as to the expectations involved by both parties.  Written conditions that clearly state the terms of any account, such as the number of days credit that may be allowed until payment is due, along with the recovery procedures that will be adopted should the account not be paid within the agreed time scale, must be provided to each such customer.  You must make these Terms and Conditions part of your everyday business practise.
For example, if the normal procedure is to engage the services of Debt Collection companies after the account is 90 days overdue, then that is what should happen.  The longer you leave a debt outstanding, the harder it may be to ultimately collect and hence the longer that money is not within your business, paying for day-to-day operating costs or even to utilise for capital investment.


In this present economic climate, there is also the very real danger that if you leave a debt uncollected for any extended period of time, that debtor may become insolvent, dramatically reducing your chances of recouping your money.  It also greatly increases the time and cost involved in seeking some form of retribution.
The reasons given for not actively chasing overdue debts can range from the time that would be taken from completing other tasks, to the lack of knowledge regarding the actual legalities of debt collection.  There can also be the embarrassment factor when asking for money, especially when a long-term business relationship is involved.
This is not an issue to be overlooked or to become complacent about.  You have to keep in mind that debt collection is an important daily business function and one that may eventually have a resounding impact on the very survival of your business.
If you find that, for whatever reason, debt collection is not being correctly managed within your business, there is help available.  Debt Collection companies are able to work with your organisation to introduce credit management services, which in turn can be tailored to suit the individual requirements of your business in relation to debt collection.  These may include drafting and issuing debt collection letters, actual recovery of the debts and even instigating legal proceedings, should this be required.
As a professional, third party company, they have the knowledge, expertise and resources to actively and persistently pursue payment of your overdue accounts without damaging your business relationships.  By engaging such Debt Collection companies, you are retaining professionals to do what they do best, thus freeing you up to do what you do best – namely running and building your business.

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A Professional Debt Recovery Letter Can Save You!

Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.


When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –

• ensure that your printed Terms and Conditions of Trade are adequate and legal
• a strict control is placed on the limit of credit allowed to anyone customer
• pre-determined agreed days of credit are strictly adhered to
• penalties for late payment of account are clearly defined

Chasing the bad debts does not make you money and it certainly does not improve your cash flow! Let a debt recovery service take over this burden for you. Not only does a debt recovery service provide a most cost effective way of retrieving what you are owed, thus improving your cash flow but perhaps, more important, a debt recovery service may well reduce the risk of default in the first place.

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What are the chances of being sued for a delinquent account?

have always been current on my accounts. However, things changed after I lost my job in October 2010. I have not been able to make payments on the Amex card and the Chase card since then. I planned to pay off my debts after securing a job. I told the same thing to my creditors too. However, the creditors refused to believe me. They have sent the accounts to a third party collection agency. I have heard that the collectors are quite aggressive people. Will they file a lawsuit against me? What are the chances of being sued? I am pretty scared. I live in Los Angeles and owe around $45,000 on the cards. My current credit score is around 525. Thanks for any information.

Solution:

Your chances of getting sued are quite high. The collectors are not patient people. They want their money by any means. They will try various methods to collect the money. The collectors will file a lawsuit against you when they lose hope of collecting money from you.

The debt collectors will calculate the total owed money prior to filing lawsuit against you. They will assess their chances of getting the money by suing you. Lawsuits are expensive and so the collectors would not like to waste any money if there is no chance of retrieving money.

The debt collectors will evaluate your income and assets. They will check whether or not you have a house or a vehicle. They will also try to know if you have available funds in your checking account.

If you have some funds in the checking account or have some equity in your home, then the collectors will definitely file a lawsuit against you. They will try their best to secure a judgment against you. Once the collectors win judgment, they will garnish your checking account or put a lien on your home.


You'll also have to think about your credit score apart from the lawsuits. Your credit score is already in a bad state right now. Your score will drop further if you don't make any payments on the cards. This implies that you'll face tremendous problems in getting a new loan or future. Moreover, you may not even get a job in spite of having good working experience and high qualification.  

I would suggest you to assess your financial situation first. Evaluate how much you have to pay on each account. Then, make a list of your assets and calculate the available funds in your account. Find out if you can repay the debts with budgeting. If not, then you'll have to get a job as early as possible. It will not be possible for you to get of this mess without any income.

You should contact the collection agency and explain your situation to them. Explain to them that you are trying your best to get a job. Try to negotiate an alternative payment plan with them.

If the collectors demand full payment, then you can take advantage of Los Angeles debt settlement to clear your dues. However, you should consider debt settlement as your last option. This is because settlement will drop your score further.

Finally, if you are not able to secure a job or qualify for debt settlement, then you can file bankruptcy. This debt relief option will help you repay your debts and avoid lawsuits.

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OFT clampdown on Debt Management Twitters

According to some reports in the media recently, the OFT could be about to stop debt management companies from using social media sites such as Twitter and Facebook to advertise their services. Firms that use pay-per-click advertising on Google could also be targeted as the OFT continues its clampdown on the debt advice industry.

The OFT has implied that companies that use social media sites to advertise services such as IVA’s, Bankruptcy or a Debt management Plan, may be acting ‘inappropriately’ and that this form of promotion could be viewed as ‘unfair business practice’. The proposals have not yet been confirmed and a consultation is currently taking place.
The main argument behind the OFT’s stance is highlighted in its consultation paper, where it questions whether the limited information that can be transmitted through sites such as twitter can provide a balanced picture for clients. Often, the content on these sites are written by the MD’s and SEO’s of debt solution companies, highlighting all the great things about their companies without ever giving much regard for the ‘free’ or ‘alternative’ debt solutions that are available.
As part of ‘best advice’ guidelines, the OFT have previously stated that commercial debt help companies, as part of their advertising, should always make their clients aware of the free and charity debt advice that is available. This is rarely talked about on Facebook and Twitter.
Most often, the only information that can be found will be written in the garbled ramblings of an enthusiastic director, passionate to get content onto the internet containing as many popular keywords as he can cram into his message in order to boost his company’s website SEO. In many cases, the information to be found on social media sites can be biased, inaccurate and even misleading. Who knows where many of them get the time to post so many blogs and messages – often at a rate of one every half hour or even more frequent, and usually from devices such as Blackberry’s and I-Phones. It could actually be viewed as a little bit sad and desperate.


The question that the OFT raises in regards to pay-per-click advertising is in regards to the limited number of characters available to advertisers, and whether a fair message can be conveyed to potential customers in such a short amount of space. Normally, a debt help firm will be expected to provide certain warnings to potential customers, such as the adverse effect that a debt solution can have on a person’s credit rating and the fact that a debt solution such as a debt management plan can extend the term of a person’s indebtedness.
There have been some murmurings from those in the debt advice sector who use social media to flog their wares that any ban on this form of advertising would be ‘draconian’ and disable commercial debt management firms from operating on a level playing field with others in the industry. The OFT has responded to these concerns by stressing that use of social media is fine as long as the information is accurate, clear and truthful.

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