So is ID theft on Facebook a problem?

The only reason which we have specifically mentioned Facebook is the fact that it is by far and away the most popular social networking site in the world and perfectly illustrates the potential problems for all social networking sites.

How much information do you put on your Facebook page?

Even the slightest of glimpses at the vast majority of Facebook pages will potentially show the person’s date of birth, place of birth, telephone numbers and family members. Many people do not realise that they are potentially making themselves the victims of ID theft by literally giving crooks all the information they need to know to apply for duplicate bank cards, passports and a whole range of other very personal identification documents.

So next time you are looking at Facebook why not check it out from a “crooks” point of view and look at exactly what information is available on your page and how they could use this. Be careful what you show on your Facebook page, be careful what photographs you show and ultimately do not tell the crooks where you are every second of every day!

Location, location, location

While there is no doubt there are fun and games to be had with regards to Facebook and the many applications available, one of the more popular is the location application which literally allows you to post onto your Facebook exactly where you are. However, if you were looking at potentially burgling a house then all you need to do is look at a person’s specific Facebook page and see where they are at many different times of the day.

Do you really want everybody to know where you are? Do you really trust all of your “Facebook friends”?

Limit the potential downside

While there is no doubt there are many people who would like to keep in touch with friends and family via Facebook this needs to be done in a correct and a sensible fashion. Do not give away personal details such as your date of birth, place of birth, etc and try not to let everybody know where you are every second of every day. These simple snippets of information can, when collected together, bring about a whole new profile for a potential identity theft victim.

Identity theft insurance

It is no surprise to see that identity theft insurance has increased in popularity over the last few years as more and more people look to buy online, more and more people become concerned about their financial safety and the online crooks become ever more sophisticated in their working practices. For just a few pounds a month you can literally cover any costs, any loss of earnings and potentially put yourself in line for a compensation payment should you become the victim of ID theft in the future.

Be warned that the financial institutions of today, such as banks and credit card companies, may well be taking on the risk of ID theft insurance at the moment but this will not continue forever.

If you’re looking to put a significant amount of your Christmas spending on to your credit card, with the idea of paying it back over a prolonged period, then you need to take advantage of the various 0% interest rate offers available. Despite the fact that we are in one of the most difficult economic periods in living history there are a number of companies offering 0% interest on credit cards for periods of up to 12 months and in some cases beyond.

While 0% interest rate credit cards should not be seen as a reason to spend money they are very much a useful tool for those looking to control their debt and control their repayment plans. If you have a 0% interest rate credit card then in simple terms the debt which you transfer onto the card will attract no interest. However, you also need to be very aware that if you spend any more money on your credit card and do not pay this back in time then your additional spending will attract the “traditional” interest rate. This is something which many people seem to ignore and it can cost you dearly in the long run!

Managing Christmas

If you’re looking to spend a significant amount of money over the Christmas period then you do need to look at your finances as soon as possible. You need to put together a financial plan and a financial package to get you over the Christmas and New Year period and then look towards repaying any debts you may have taken on board. The first few months after the festive period are by far and away the most active in the trust deed market because this is a time when more people than ever before will overextend their finances.

While many people may well qualify for a trust deed, which can in due course take off much of the financial pressure, do not take this for granted. Trust deeds are not a reason to spend money, they are a reason and a means of reducing the pressure on people who have overextend themselves in the past or perhaps been the victim of circumstances. Just because you have a certain level of debt does not automatically mean that you will qualify for a trust deed so if you are planning to spend as much as possible before Christmas and then basically make yourself bankrupt in the New Year, think again!

Conclusion

Despite the best laid plans the chances are that many of us will overextend our finances at Christmas and may well, in the current economic climate, still be paying back our debts this time next year. There are a number of financial tools out there to reduce the pressure on your finances but in simple terms you should not overextend yourself and then expect to be bailed out.

Trust deeds in Scotland are there for a reason, bankruptcy laws in Scotland are there for a reason, and it is vital that you make use of this very important lifeline. In simple terms, whether you look for a trust deed in Scotland or perhaps bankruptcy in Scotland, the courts and your trustees will decide whether you are in a position to pay any debts or all of the debt. If your trustees decide bankruptcy is not in your best interests then you will be told so and the worst-case scenario would be a debt repayment program which would see both parties receive some form of closure.

Placing your head in the sand and hoping that your debt problems from go away will lead to worse problems and you need to address those issues as quickly as possible. For many people the major problems in the future come from the fact they have let their debt problems linger for too long and have “passed the point of no return”. So if there is one phrase which would sum up how you should approach any debt issues it has to be “Act now!”.

In simple terms a Trust Deed allows you to reduce the overall balance of your debt and make payments for an agreed period which will be based upon your ability to pay not what is owed. From the bank’s point of view they would rather have something than nothing and there is no benefit in crucifying people for ever and a day if they are unable to repay their overall debts and the cost of trying to obtain repayment is not cost-effective.

While a Trust Deed will mean you have no access to other forms of credit and your trustees can at any time request further information and further details about your financial situation. In reality, so long as you stick to the guidelines and the agreement, you will only hear from your trustees on an annual basis to update their records, update your financial situation and basically ensure that your repayments are going through on time.

One of the major problems for those in debt in Scotland is the fact that many people do not know how much debt they actually have and automatically assume the worst. By assuming the worst this can make a difficult situation even worse and by burying your head in the sand you ensure that the problem is never solved and never goes away. While a Trust Deed, or bankruptcy, is by no means something you would wish to experience in your lifetime, if you are in debt there is no point fighting forever and you should take professional advice.

A Scottish Trust Deed is a legally binding agreement between debtors and creditors which should effectively draw a line under a person’s financial troubles and allow all parties involved to move forward. Banks and creditors have realised that there is no point chasing individuals for money they have not got as this has a cost to all parties involved. Therefore, a number of banks and financial companies are now looking to put in place an array of Scottish Trust Deeds which will allow people to repay part of the debt, calculated on their income and their expenditure, and finally see them debt free at the end of the Trust Deed period.

While there are obvious issues with regards to credit ratings and credit in the future the truth is that many who have been through a Scottish Trust Deed and or sequestration will be very wary of taking on any debt in the future anyhow. You must also remember that any credit rating issues will not last forever and as long as you learn your lesson when your Trust Deed or sequestration is in place then there is no reason why you cannot eventually enjoy a more traditional financial existence.

If you feel your finances are struggling you need to get a grip as soon as possible, appreciate what is happening, amend your budget and if need be take professional financial advice about your situation. The trust deed laws and bankruptcy laws are there to help you and if your situation merits such action then you need to be aware it is for the long-term good of your financial health and also your family. There are many cases where financial problems will begin and if action is taken at the first signs of trouble then there are ways and means of reducing the severity of the situation and potentially not having to revert to trust deeds or bankruptcy proceedings.

If you feel like your situation is slipping away from you then you need to act NOW to ensure you have a fighting chance of rescuing whatever assets and whatever income you have.

Many expect the number of protected trust deeds granted in Scotland to grow significantly in 2011 with a large proportion of the Scottish employment sector dependent upon the public sector. As we have seen in England, there will be massive cost-cutting exercises in the public sector over the next decade which will mean more and more people thrown onto the unemployment list in Scotland. Many people are already struggling to cope with record debt in Scotland and despite the fact that UK interest rates are at an all-time low, more and more people are struggling to pay off their minimum credit card and loan repayments.

One more problem in the future with will be mortgage repayments because even though UK base rates are currently 0.5%, and mortgage rates are relatively low compared to recent times, these rates will increase significantly in due course. Unless the economy is in a significant growth period there is every chance that more and more people will be pushed towards the edge of the financial precipice due to increasing mortgage payments, higher inflation and potentially less money coming into the household.

If you are struggling to cope with debt it is vital that you take professional financial advice with trust deeds and protected trust deeds the equivalent of IVAs in England.

Step one

The worst thing that you can do is bury your head in the sand and pretend that everything is well and there are no problems. The first step towards coping with debt is to admit there is a problem and to clarify the situation as soon as possible. Once you know the problem, the total debt you have and any free income, you will then be able to try and solve the issue.

Step two

The next step is to see whether you can make changes in your own budget which will leave sufficient money aside to pay off any debt and also stop you from building any more problems for the future. Whether you need to reduce your Sky TV bill, give up your mobile phone, cut back on takeaways and other nonessentials, there will be ways to reduce your monthly budget and hopefully begin to pay off your debt.

Step three

If you quickly realise that small changes in your spending habits will not have a major impact upon your debt and indeed you are under pressure from your creditors then it will be time to look towards IVAs, voluntary agreements with your creditors or even bankruptcy. The quicker you take professional financial advice with regards to your debt problems the quicker you can have these issues tackled and hopefully solved.

The trick to solving your financial problems as soon as possible is to admit they are there, write them down on paper so you can see them, make changes to your budget and take professional advice where required. Leaving the issue to build up and build up can and does affect your health and will make the issue worse in the future. Act now to give yourself a fighting chance of rectifying the problems without the need to go to court or take professional advice.

This list of insolvency practitioners Aberdeen contains the leading members of the insolvency sector in and around the region and there are more than enough to choose from should you require assistance to sort out your financial affairs. Whether bankruptcy or an IVA are the best options for you, or indeed whether there are simpler ways out of your financial woes, is something which you should discuss as soon as possible to ensure you are making the right choice.

MESTON REID & CO
12, Carden Place, Aberdeen, Aberdeenshire AB10 1UR

RSM Tenon
Suite 2B, Johnstone House, 52-54, Rose Street, Aberdeen, Aberdeenshire AB10 1UD

Begbies Traynor
7 Queen’s Gardens, Aberdeen, Aberdeenshire AB15 4YD

Invocas
Langstane House, 221-229, Union St, Aberdeen, Aberdeenshire AB11 6BQ

Ritson Smith
16, Carden Place, Aberdeen, Aberdeenshire AB10 1FX

Johnston Carmichael Financial Services Ltd
Bishop’s Court, 29, Albyn Place, Aberdeen, Aberdeenshire AB10 1YL

Campbell Dallas
10, Carden Place, Aberdeen, Aberdeenshire AB10 1UR

Jamieson’s Book-Keeping & Accountancy Ltd
39 Dee Street, Aberdeen, AB11 6DY

Peterkins
100, Union Street, Aberdeen, Aberdeenshire AB10 1QR

Johnston Carmichael
Axis Business Centre, Thainstone, Inverurie, AB51 5TB

CS Corporate Solutions
11, Allardice St, Stonehaven, Kincardineshire AB39 2BS

Peterkins Solicitors
60 Market Place, Inverurie, AB51 3XN

Peterkins Solicitors
39 Main Street, Alford, AB33 8PX

Johnston Carmichael
15 Academy Street, Forfar, Angus DD8 2HA

Peterkins Solicitors
145 Mid Street, Keith, AB55 5BJ

Peterkins Solicitors
Gordon Street, Huntly, AB54 8FG

You need to tackle your debt issues head-on as soon as they begin to impact upon your life as ultimately they will get worse if left unattended. As more and more people continue to pile debt onto their credit cards there are only putting off problems today for tomorrow and making them worse. Any credit card company, loan company or mortgage company is likely to be more sympathetic to your case if you let them know as soon as possible that you are having trouble.

Ultimately many people in Scotland may need to look towards trust deeds or even bankruptcy in the end but if this is the best course of action for your long-term future then so be it.