A report out from the UK Insurer AXA suggests the UK public is drowning in debt with 11.6 million people (25 per cent of the adult population) saying are under pressure financially with a momentous number, around one million three hundred thousand people, admitting their finances are entirely unmanageable.

AXA reported that mounting credit card bills are now putting just close to 3.8 million people under intense financial pressure and a further one million of UK borrowers are now struggling to keep up their repayments.

500,000 people have been threatened with the bailiffs or repossession and consumer county court judgements (CCJs) has reached their highest level since the start of 2007’s third quarter.

In England and Wales CCJs rose by 17.4 per cent year on year to 223,519, their highest level since the first quarter of 2007, according to figures published by the Registry Trust, the public interest company which manages the register of judgements, orders and fines on behalf of the Lord Chancellor. This represents an increase of 24.8 per cent from the second quarter of 2008.

Individuals entering into insolvency within the borders of England and Wales are on the up by nearly 9 per cent or just over twenty seven thousand in the 3rd part of 2008 compared with the previous quarter.

Bankruptcies and Individual Voluntary Arrangements (IVAs) have increased 12 and 3 percent respectively.

The sharp rise in corporate and individual insolvencies merely reflects the treacherous economic conditions people and businesses continue to face through this deteriorating recessionary backdrop; making an even sharper rise in both business and personal insolvencies look inevitable in the coming quarters of 2009.

Unfortunately the planned Simplified Individual Voluntary Arrangement SIVA, due out next year has been abandoned by the Insolvency Service

Where an IVA needed 75 per cent of creditors to accept the proposal for insolvency a Simplified IVA or SIVA only required that a majority accept the terms. The SIVA was intended to be launched next year with a creditor cap of 75,000.

UK Home Owners unable to consolidate their debts using equity and are not wishing to go bankrupt have for the time being limited options between an IVA and a Debt Management Program.

See www.ftc.gov/s/statutes.feradoc.pdf for the details of the Fair Credit Reporting Act (FRCA). This act is written, not for the credit reporting agencies, but for consumers.

The FCRA is the basis for what we are entitled to see and the rights that we have as consumers with the credit reporting bureaus. Keep in mind that these credit bureaus are private businesses that need to “make a profit.” Therefore we have a right to know what their respective reports are saying about us.

There is much information on your credit report regarding your financial picture. Even though most of the entries may be accurate, it is possible that you may find false and/or outdated information in these documents. This could be an unwelcome surprise.

According to the FTC (Federal Trade Commission) tells us that we can fix any problems with our credit reports ourselves without any help from a possibly disreputable company. According to the FCRA, the only “negative information” that can remain on your credit report is “negative information” that can be proven to be true.

When you do the comparison and review of your reports, if negative information is true, “it has to stay.” Mark the entries you plan to dispute. Then you will make a case for removal.

All of your data regarding inaccurate information will need to be documented and provide your proof of an error. This will be sent to the Credit Bureaus who must respond. It will be up to them to prove all information is true.

It is possible that you may decide that this project is really not something you can successfully complete on your own. Then you may consider “credit counseling.” Do this very cautiously. “Overnight” credit fix is too good to be true and these companies could ask for a lot of money “upfront” and charge a monthly fee. Although it might sound really good, remember that these agencies are also “for profit” and need to make money. Think SCAM.

There are people who can probably give you referrals for honest companies or people who can assist you. People are available who are reputable and will take care of your needs.

Free credit repair services defy the notion that nothing in life is free. It is possible to find credit repair service that offer their services free of charge. There are not many of them and to work for you they require that you meet certain guidelines that they have established. To locate a free credit repair service is not an easy task. It will take some searching, but they do exist.

One way to find a free credit repair service is to contact someone just starting their credit repair business. They will need the experience and may be willing to provide the service free of charge. This will help them get their business off the ground and help their new client as well.

While your changes of finding someone like this may be slim, it is certainly something that can happen and something that you should always keep an eye out for. You can always ask around to see if anyone would be willing to help you in order to gain experience.

Other Ways To Find Help

Another way to get free credit repair service is to advertise in the paper or in an online advertising site that you are willing to trade. Maybe you have something that you want to sell or trade in return for a free credit repair service.

If you have a skill or a talent you may be able to use that to your advantage. Offer to give lessons and teach your skill in exchange for help repairing your credit. You may be surprised at the positive results that come from a little creative thinking.

A great place to start is with close friends and relatives. If someone in your family has previously or is currently working for a company that offers the service of credit repair they may have learned a few things on the job that will enable them to be of help to you. Ask them if they would be willing to give it a try. You may be able to really benefit from their experience and knowledge.

You may know someone who has been through it before in their personal life and they have picked up enough to help you with some free credit repair services. In turn, by the time you are all done, you will have learned a lot and can later turn around and help someone else that is in need.

It is not unusual for a person to be shouldering much more debt then he actually can handle. Most people have a sizeable amount of debt that they deal with each month and for some it eventually gets out of hand and impossible to maintain. For those people credit counseling can offer some assistance. What can a credit counselor do for you?

A credit counselor has multiple roles. First they will analyze your situation to see what can be done to help you recover from the debt you are in. After their analysis they will create repayment strategy. In addition, they will help you learn how to avoid future financial problems.

Your credit counselor is interested in helping you get back on your feet financially. They work for you. However, one of their goals is to get your creditors paid as much of the money owed to them that they possibly can. With both objectives in mind and after reviewing your situation they can develop a budget for you.

When setting up a budget for you they take into consideration your other living expenses and calculate how much you can afford to pay each month to your creditors.

These counselors have established a rapport with many creditors and know what they will and will not accept concerning payment arrangements. As much as fifty percent or more of your outstanding debt could be forgiven.

If your counselor is certified this means that he has a financial background and keeps up his certification through continuing education and training. This is all to your benefit. You have someone working for you who has experience in knowledge in the field and can pass that on to you.

Once they get you back on track they give you detailed instruction on how to stay there. One important aspect of that is being well informed about your credit report and your credit scores. They instruct you on how to keep up with your credit report and review your scores regularly. They also help you readjust your attitude toward spending money so that you can avoid repeating the same financial mistakes down the road.

With the information and tools given to you by you credit counselor you can begin to rebuild your credit right away. They will give you all the instruction you need to turn your credit around.

Credit cards come from many different issuers, offering different incentives to entice you to choose their card. There are rewards cards, cards that give you special treatment at restaurants and the such, and cards that show your allegiance to a particular sports team. If you look hard enough, you probably can find a credit card that matches every personality.

A credit card designed with the entrepreneur in mind is what you should be using as a small business owner. You need a card that benefits a business owner, not one that is tailored towards the consumer market. Even though there is not as large a selection as there is for the consumer, you can still find a good selection of business credit cards.

When it comes to a credit card for entrepreneurs, they are available from big card issuers, and include Visa, MasterCard, Discover and American Express branded cards. Most cards tailored to business let you track expenses of individual card holders and other business specific items. With a business credit card, you have a lot of control over their use.

It is important to go with a credit card issuer that comprehends the needs of the small business owner. An example of such a company is Advanta with their Advanta credit card. Advanta specialized in dealing with the small business owner, which means they are one of the best when it comes to serving the entrepreneur.

Advanta only business is issuing credit cards for business, so they are quite good at this. Because they only offer a product for business owners, their credit card products are designed with the entrepreneur in mind.

Having used an Advanta credit card in our business for several years, we have nothing bad to say about the product. If you are an entrepreneur in need of a business credit card, see for yourself what they have to offer.

When you decide on a credit card for your small business, pick a financial product that is designed specifically for the requirements of entrepreneurs. Always go with the best credit card for your particular situation, as this means you are using the best financial tools available for your small business.