Exploitation in Right to Buy Scheme

There have been several schemes where third party companies encourage tenants to purchase their homes under right to buy scheme, by offering them cash incentives. The tenant purchases property at a discounted price under right to buy scheme and simultaneously exchanges contracts to sell property to company after 3 years at which point no discount penalty will be repayable. The tenant will lease property to company and move out of home with a cash sum. This leaves company free to rent out property at current market rental rates.

After three years tenant sells property to company. The company will either continue to rent property at market rates or property will be sold on at a substantial profit.

The incentive for tenant is lump sum offered, which can be anywhere from £5000 to £26000 but is usually a percentage of equity of purchased property. This could be attractive to tenants who do not wish to purchase their current home or hope to purchase a property in another area as it will give them a ready made deposit to buy another home.

The new proposals are designed to make this type of sale less attractive and prevent profiteering as well as securing local housing for less well off. The proposed changes in section 180 and 182-189 of Housing Act 2004 will come into effect on 18/1/2005.

For more information on a right to buy mortgage, visit Right To Buy website at Right to buy website.

Step 4. Remove access to any credit you may still have. During this entire debt reduction program you must learn to steer clear of bad habits. You should no more try to conquer debt while you have access to credit, than you would pilot a rowboat thru a hurracine.

* Lockup, return, revoke, cancel, desroy or otherwise make unavailable to you all remaining sources of credit: credit cards, revolving lines of credit and credit extensions. * If you feel you need to keep a credit card for identification purposes such as when you pay by check, then choose card with least available credit remaining on it. * Become your own banker. Do not carry your checkbook on your person. Write yourself one check every week. This is your allowance. Cash check and live on it. * Every time you receive an offer of credit in mail, immediately tear it up and throw it away. Do this even if you have to make a special trip to incinerator or dumpster in middle of a blizzard!

Consumer credit is most insidious type and most Difficult to give up. As you know, you will be continually bombarded with new offers of easy, often pre-approved credit. You must ignore them at all cost. By this almost surgical removal of your access to credit you will come to realize power of word NO! And you will become more comfortable saying it. Step 5. Use Cash Only!

* Pay cash for everything. If you do not have enough cash to pay for an item, you cannot afford it. Anticipate your expenses now, so that you will have enough cash on hand. * Now if you do not have enough cash on hand, then cash a check at your bank or make a withdraw from your savings account. Either way, you will need to immediately deduct amount from remaining balance. * If your account is overdrawn at bank, please stop writing checks immediately. If you do not know how to balance your checkbook, do not write any checks until you learn how to do it. You must be absolutely sure there is enough money in account to cover every check issued. Under no condition may you bounce a check. Aside from any criminal liability and negative credit reporting you may be subjected to, you will have to pay an overdraft charge. This may be as much as $50 and will be deducted automatcally from balance in your account. You also amy be liable for a merchants return check fee. Which can be as high as $25 to $50 per check. * Do not apply for overdraft protection at your bank. Because this is a line of credit with a high intrest rate, you will be tempted to abuse it.

Living on cash teaches you to prioritize your spending. Since you can no longer buy anything you want whenever you want it, you must focus on what you really need. Ask Yourself: Since I am paying cash, is this something I absolutely must have? Am I really willing to forego something else in order to pay for this item now? Learn not to feel denied. Instead, think of sacrifices you are making to achieve your long-term debt reduction goals. In order to eliminate your debts, you must satisfy your needs not your wants. There will be time to buy what you want after you are in control of your finances.

Visit: www.debt-elimination-program-reviews.com/goarticles