Help With Debt

Credit Card and Loan Write Off

2009-01-29T10:53:00.003Z

Everybody knows and accepts that we are in the depths of a recession that may even become a depression. Whilst it may be difficult to see what that means on a global scale, each of us is accutely aware of how this down turn has effected us.
The ability to obtain or extend credit has now almost disappeared. Couple with this the practice of the credit card companies, who realise that they have a tied in borrower base,to raise the interest on monies lent and you have an explosive cocktail leading the debt repayment failure.
The cycle is easy to see, you have maxed out your credit, you cannot get more credit, you need credit just to get through the month and help satisfy your monthly minimums on your borrowings, the credit card company raises it's interest charge, meaning you have to pay more, you cannot afford what you already owe, you default, they add charges, you fall further into arrears, the cycle is never ending. What can you do.
Solutions are available and I offer them all. We can help with debt management, we can propose an IVA, we can walk you through bankruptcy. We can write off your credit cards.
The latter is my favoured option at present as it can be done without harming a credit rating for those to whom this is important. For those who have credit rating issues, it can be taken alongside a debt management plan.
The procedure is simple and cost effcetive to begin.
For more information follow the links and call for a free sign up pack and FAQ sheet.
Steve Thatcher
www.helpwithdebtuk.com

Credit Card Write Off FAQ's

2009-01-06T10:02:00.001Z

How does it work?

The Consumer Credit Act of 1974 allows borrowers to challenge unfair credit agreements. Credit Agreements up to £25,000 and issued before 6th April 2007 must comply with the terms of the Act. Most UK banks and lenders have not followed their legal obligations under the Act over the years. This means that your credit agreements may be legally unenforceable. Recently, a high percentage of those agreements that have been challenged have been found to be unfair and unenforceable. The result is the debt can be written off as it cannot be collected.

Solicitors manage every case. We take details of your debts and our specialist legal team challenge the agreements with the lenders. They obtain documentation on your behalf and then verify the legality of the contract. Our legal team will then, via specific correspondence, prove that your agreement is not valid. As it is unenforceable, they will require the card company to write off the debt. In any event you do not have to pay anything further as the agreement would be unenforceable.

Our Debt Write Off Pack contains all the information and documents you need. You can request one from our web-site or by calling us on FREEPHONE 0800 043 0067. We can start your claim as soon as you return the required documentation and fee(s).

Is it legal?

Absolutely, 100% legitimate. If the banks and lenders do not follow the legislation, they are breaking the law. We use the law to protect YOU, the consumer. The banks and lenders, however, don’t want the general public to become aware that they may not have to repay their loans of credit cards.

In what circumstances do these agreements not comply?

Most lenders have not included all of the key points in their credit agreements. These are known as prescribed terms. In some cases, the lender may be unable to produce an original copy of the agreement.

How long will it take?

This depends upon various parameters. First, your lender must produce a physical copy of your agreements within 42 days of our request. If they cannot do this, they are in default and your outstanding balance can be written off immediately. This could be a matter of weeks. Second, the response times from lenders to our requests for information and confirmation that the debt has been written off can vary. Typically 4-9 months should be allowed.

Which type of debts can be written off?

Provided they were issued before 6th April 2007, secured or unsecured loans including consolidation loans, credit cards and store cards and car loans/finance, up to £25,000.

How much does it cost?

£125 fee is payable for each agreement scrutinised by our legal team. The success fee for writing off your debt is 12% of the total. For credit cards this is payable in four instalments of 3% of the total, the equivalent of making four minimum payments on your card(s). The same applies for loans. The success fee covers all legal costs associated with your claim.

Can I continue to use my credit cards?

NO. Using the cards may affect the process of getting your debt written off.

Should I continue to make payments to my credit cards/loans?

Once your claim has been accepted, you can stop making payments.

What happens if my lenders contact me after I start a claim?

Our solicitors will deal directly with your lenders. This should stop them contacting you to discuss the debt. If they do, you should not answer any questions or get into conversation but ask them to put any correspondence in writing. We might be able to use this to win your case.

Are there any adverse repercussions?

NO. It is highly likely that the lender(s) will close the credit card account, however, there are plenty more credit card companies available to you.

Can I do this if I have a bad credit history?

YES. Once we have helped you to clear your debts this will also help to clear your credit file as the debts will no longer exist.

Will my credit rating be adversely affected?

NO. Legally, once written off, the lender has to remove all trace of the account.

Does it matter if I’m already in an IVA?

NO. This is a separate service and does not affect any other actions that you may have started.

Can you help if my lender has a CCJ or Charging Order against me?

YES. If we believe that the credit agreement on which the judgment or order is based is unenforceable, then we can put that debt into dispute before getting it written off. As soon as the debt is put into dispute, all legal action against that debt is frozen immediately. This will give our specialist legal team the time they need to build a claim against that credit agreement. We can stop the CCJ or Charging Order and get it reversed by challenging the credit agreement on which it was based.

Can you get your credit card written off?

2008-12-09T15:57:00.001Z

Is your credit card agreement unenforceable?
As many people are coming to understand if a credit card was taken out prior to the 6th April 2007 there is a very significant chance indeed that it is an unlawful credit card agreement and it is possible to write off the debt. The Consumer Credit Act 1974 has a fundamental requirement that any agreement must comply with certain prescribed terms.
Examples of Unenforceable Credit Card Agreements
• The lender doesn't have a copy of the agreement.
• The amount of credit (or credit limit) hasn't been stated on the agreement.
• The interest calculation is incorrect.
• The agreement hasn't been signed by both the debtor and creditor.
• An increased credit limit has been provided on a credit card agreement without it being requested.
• The credit charges are not deemed to be fair.
• No rate of APR is displayed.
• There is no mention of any 'cooling off' period.
What will be the result if the credit agreement is lost?
Sending the lender a S77 request entitles the borrower to get a copy of the credit card agreement. It is necessary to include a postal order for £1 as required by the act.
The lender has to send a copy of the agreement within 12 days failing which it is in default. If the lender cannot provide a copy of the actual, signed credit agreement they aren't in a position to enforce the debt as it is an illegal credit card agreement. It is then possible to require them to remove data they hold about you from their records and those held by credit agencies.
Will This Have a Negative Impact on Credit Ratings?
Provided payments are kept up during the legal challenge, no credit rating will be affected. Those who have adverse credit will actually improve their credit rating. This is because the debt was deemed to have never technically existed so no adverse credit entries can be registered for a debt that doesn't exist. These entries can be removed when a case is successful.
How Long Will it be Before the Outcome?
The duration of any case does vary depending upon the institution and complexity of the case. Most cases are usually settled within 6 months, sometimes a lot sooner.
What Happens if the Unlawful Credit Card Agreement Case is Successful?
If it is decided that there is an illegal credit agreement, it is possible that the entire debt will be written off. This will mean that the balance is completely wiped and will not show on credit reference agency records.
What About Credit Card Debt that Cannot be Written Off?
For more recent credit card debts that cannot be written off, it is worthwhile considering a Debt Management Plan or even an Individual Voluntary Arrangement (IVA). It is imperative the serious debt problems are dealt with as efficiently as possible.
So it is possible to get debt written off yourself but most companies will only take seriously a threat issued by a solicitor.
IF YOU HAVE A CREDIT CARD AND YOU THINK THAT YOU MAY BENEFIT FROM A REVIEW OF THIS CARD AND WHETHER IT COMPLIES WITH THE CONSUMER CREDIT ACT 1974, PLEASE CONTACT THIS FIRM WITHOUT FURTHER DELAY.

Credit Cards Written Off

2008-11-28T13:16:00.001Z

Are your loans and credit cards unenforceable?
We can get you on the road to reclaim.
You might be abe to stop paying back your credit agreements and be due a refund of all or part of the payments you have made.
I myself have had £50,000 worth of credit card debt written off!
Help With Debt can check that your credit agreements comply with the Consumer Credit Act 1974.
WHY?
If a credit agreement does not comply with the Consumer Credit Act 1974 it may be deemed to be unenforceable.
Our solicitors can then act on your behalf to attempt to:
Write off any outstanding balance
Reclaim previous payments of interest and charges
We can audit Credit Agreements of up to £25,000 with a minimum outstanding balance of £5,000 for loans and £500 for credit cards including:-
Credit Cards
Secured Loans
Unsecured Loans
Hire Purchase
Consolidated Loans
Car Loans/Finance
Who Will Qualify?
Any individual in a credit agreement that is regulated by the Consumer Credit Act 1074
The Agreement must pre-date 6th April 2007
Loans to be between £5,000 and £25,000 and be on-going
Credit cards must have a limit of £25,000 and have a balance outstanding of £1,000
So do you have any agreements that we can audit for you? You could be within weeks of writing off thousands of pounds

A new Start. Fresh debt advice

2008-11-27T14:44:00.002Z

This month has taught me a valuable, but ultimately disappointing lesson. After coming up with the idea for a debt solutions business based upon the right advice at the right time and indeed setting up the same with two contacts I find myself engineered out of the business.
I was told earlier this month by my two erstwhile partners that they no longer wished to pursue the business. I was encouraged to strike out and set up on my own.
This I did as the debt solutions company to me was something I believed in and not a means to an end.
How naive I was, no sooner was I out the door and transferring my shares, than my ex partners began ring fencing the business, and tying in the contacts that I had brought in.
No matter, I will prevail. I will re-establish what I do, re configure all my templates and come back stronger and wiser.

If you read this and would like to help, send those in debt my way.

Eunoia and Debt

2008-10-30T08:43:00.002Z

Eunoia is the shortest English word containing all five main vowels. It comes from the Greek word euvoia, which means well mind. It could also mean “beautiful thinking”.

What has this got to do with debts and debt relief? Well I think that we all need some beautiful thinking, or positive movement of mind to try to unshackle our thoughts from impending doom and destruction that seems to be pre-eminent when ever one turns on the TV or radio.

The media are obsessed in this 24 hour instant news world with reporting every nuance and twist and turn of monetary machinations. If we dwell too long we will find that we spiral ourselves into a tumult of despair and foreboding.

In this Autumnal snap of Arctic air, take time today to stand in the wind and breathe deeply. Fill your lungs with cold, life giving breath, empty your mind of grim thoughts and resolve to change your life for the better.

What better way to do that than to pick up the phone and speak to a Help With Debt Advisor. Help With Debt and Eunoia, a perfect combination.

Write Off Credit Card Debt

2008-10-21T14:09:00.004+01:00

It is possible to utilise a debt solution that doesn'y actually involve spending a penny repaying your creditors. I am able to utilise the provisions of the Consumer Credit Act 1974, to legitimately help people who may owe thousands of pounds turn around to their credit card company and say I'm not paying you a penny. The credit card companies can do nothing about it an dhave to write the debt off.
It works even better with Debt Purchasers, who whilst they may purchase the right to pursue the debt, often forget to take delivery of the documents evidencing the debt. Silly Billys.
Do you want to know how to do it?
Drop me a comment and I'll tell you how.

Three Trillion invested in markets and still no bank lending

2008-10-16T08:16:00.003+01:00

Governments around the globe have invested Three Trillion in bailing out banks and underwriting their trading with each other. Central Banks in Europe, Asia and America have pumped many billions more into money markets to allow banks to lend to each other, combined with underlying Government guarantees of interbank trading. There has been a co-ordinated global reduction in interest rates by 0.5%, and may be more to follow.
The net result of this has been an initial rallying of stock markets around the globe and rises in the value of some bank stock.
What has not happened is a movement in banks trading with each other, or the passing on of that 0.5% interest rate cut.
Banks are simply not interested in lending at present. This could cause catastophic harm to world economies, which is why we are at present seeing stock markets around the globe crashing. The Nikkei was this morning down 11%, its biggest drop in history. London has opened sharply slower this morning and it is expected that the Dow will be marked down later when trading starts in New York.
So what more can be done. Well I hate to crow but I did forewarn of this last week. Central banks and Governments must now do more, and if that is not enough they must do more again. The Central Banks must try to find a link between their interest rates and the global bankers willingness to lend to each other. Without credit finance being made available to homeowners and businesses, world recession which we are in , will be deeper and harder than needs be neccessary, and indeed could escalate into a global depression.
It is a struggle that the Central Banks cannot afford to lose, but what this may cost yet, nobody knows.

How a pre-pack administration can save a business

2008-10-15T12:49:00.002+01:00

How a Pre-pack Administration can save a business.
If you have a business that is facing great creditor pressure, including court summonses or statutory demands or visits from bailiffs, then it is possible to save a decent business (but not the Limited company shell) by selling that business to a "newco" possibly set up by the existing directors.
Following are the steps that need to be taken to place a distressed business into a pre-packed solution
Step 1:
A Company would take advice from an insolvency practitioner. We can recommend one if required. Directors may be worried about wrongful trading, which is continuing to trade when they realise that the company is insolvent and may not be able to trade out of that insolvency, thereby possibly incurring personal liability.
This advice should be thorough and a report prepared in writing for the board and possibly for the bank. All options such as company voluntary arrangement, trade sale, refinancing, aadministration, creditors voluntary liquidation and pre-pack administration should be explored.
If there are good reasons for a pre-pack the option needs to be considered by the directors. If it is decided by the Board to enter a pre-pack administration a board meeting should be held and a resolution passed stating the company's board will consider the option in greater detail. It's likely the resolution will include the appointment of formal advisors either insolvency practitioners (IP), turnaround practitioners or accountants to act as advisors to the board.
Step 2:
If the plan is to sell the business (not the company!) to a "newco" then a business plan for the newco must be drawn up. This would include a detailed profit and loss forecast, cashflow forecasts and balance sheet forecasts. This will give an indication of working capital requirements. The proposed administrator will require this as evidence that the new company can be viable.
If the plan is to sell to an existing trading company, the IP will require copies of management information and accounts from that buyer. Again this is necessary to ensure the purchaser is viable and can afford any payments for the assets being acquired.
Step 3: - Compliance issues.
Under insolvency practitioners guidelines (known as SIPS) the IP must market the business. Often this requires sending sales memos to a database of potential buyers the IP may hold, an advert on his website or a local or national newspaper. If he gets no interest or no indication of interest he can then sell to the newco or third party.If there is a lot of interest and offers, beware your business could fall into a competitors hands.
The IP will also get formal valuations of the assets, intellectual property and or goodwill of the insolvent company. Any offer needs to be commensurate with valuations.
At this stage if the directors are planning to buy the business they must be careful. Directors of a failing company have a fiduciary duty of care to the company and its creditors. Starting "newco" can put that at risk of conflict of interest. It's likely that separate legal advice will need to be taken in relation to both companies.
The IP will be unable to charge costs for pre-plan work but he may well charge a consultancy fee together with disbursements which may include those fees of other external professional advisors.
Step 4: - Raising finance
You will need finance to fund the acquisition of the assets and business. There are many specialist lenders who can provide: factoring, asset based lending, loans and bank facilities. But this is likely to be difficult to raise and will probably require personal guarantees from the directors.
The detailed plans that you have prepared will enable those funders to make a decision on whether or not to support the new venture.
Step 5
If you can raise the finance, the proposed administrator has satisfied his compliance requirements and the board of newco believe they can fund the acquisition then it will be possible to move ahead.
A contract will be drawn up that appoints the proposed administrator formally. He will then initiate the pre-pack administration by contacting any floating charge holders like banks or lenders with security. If they have no objections (and often they are involved in funding newco) then he can proceed.
Assuming all is approved then the administrator makes an application to Court stating his proposals. The business will be sold to a newco or third party almost immediately.
Summary
If you are interested in a pre-packaged administration you should seek proper advice, we can provide that advice and put you in touch with advisors we trust to smooth the process.

Why Bankruptcy is not all bad

2008-10-15T08:23:00.002+01:00

Why Bankruptcy is Not All Bad.
I have been in the insolvency business for all my working life, firstly as a solicitor for 15 years, and then as a manager in a debt solutions company. I now run my own debt solutions business offering real solutions to those in debt. My motives are not driven by a BAM (best advice model) which has been engineered not to provide best advice but actually to drive the decision to the solution which provides the greatest financial reward for the solution provider, but for a genuine desire to ensure the correct solution is undertaken.
I have noticed a concerted drift by providers of solutions to push people to a debt management solution or an IVA . The reasons are obvious if one thinks about it. For a DM solution the provider may take the first two month’s contributions, on average £250 per month and then make a management charge of 17.5% per month. For this the company will take responsibility for liaising with creditors, and attempting to get them to accept reduced payments over an extended period of time, whilst also freezing interest. This is invariably successful, and for some people it is an appropriate solution where the debts can be dealt with in a short period of time. However, many debt management plans envisage payments being made for 10 -12 years to clear balances. The problem always however with this solution is that it relies on the goodwill of each creditor who may at any stage take or continue with action against the debtor.
For the IVA solution, the provider will ascertain what the debtor can afford and the IP’s fees will come out of contributions prior to these contributions being paid across to the creditors. Fees can routinely be £2500 for setting up the arrangement and around £5000 for monitoring it for the next five years. This is very remunerative for the IVA provider if the arrangement goes the full term. Many will say that this is irrelevant as the debtor is paying what they can afford and the creditors are happy to agree these fees to ensure compliance with the arrangement. I have a different view. During my time in this industry I saw a gradual creep in the amount that creditors demanded from debtors by way of monthly contributions before they would agree to an arrangement. The result of this was that many people desperate for any debt relief would agree to make monthly contributions into an IVA that were simply going to be unsustainable. One thing that must be remembered about an IVA is that unless all 60 payments are made, the IVA is not deemed to have completed, and if it fails you will still be in the position of owing creditors whatever was due, less those payments they did receive. The “rewards” of up to 75% of the debt written off only accrue when the arrangement has been completed, but on current figures only 60% ever complete and these figures will undoubtedly get worse.
My view is that whilst the above are viable solutions for some people on some occasions, many more people should consider bankruptcy as a viable alternative.
The attractive features of bankruptcy are that all qualifying debts are written off the moment the bankruptcy order is made. The fees are reasonable, being only £495 per person. Your affairs are taken over by the Official Receiver, so he will deal with all creditor claims. You will generally be discharged from your bankruptcy after only a year and maybe even before that if the affairs are very simple.
It is said by critics that bankruptcy has a stigma, and that the bankruptcy will be advertised in a local paper. That is true but I always say to my clients to think and see if they can recall ever seeing those adverts. None can! Others say that the home will be lost. If no equity exists in the house then it can be transferred back for as little as £250. If there is equity, the Official Receiver will require this to be taken out and paid to him. For many people of course who do not own a property, there will be no property consequences of a bankruptcy.
Finally as a bankrupt a person will not be able to act as a company director, and some professions such as the police and the armed forces take a dim view of bankruptcy, but for the vast majority of people, bankruptcy will have no other effect than to liberate them immediately from debt.

Steve Thatcher

Invoice Discounting Explained

2008-10-14T09:38:00.003+01:00

For many small businesses seeking to raise instant funds for working capital Invoice discounting may be the answer. There are two types available, called Confidential and Disclosed. As their names suggest, with Confidential the customers are unaware of the Discounters involvement, whereas where it is disclosed they are.

How Invoice Discounting Works.
Client sends customers invoices for work completed
Client sends day sales ledger to Discounter
Discounter pays up to 85% of invoice values to client
Client collects payment from customer and banks these into a designated account
Discounter collects funds from account and releases the 15% balance still retained less his charges.

For many new businesses there will be an existing ledger available and the Discounter will be able to release those funds which qualify to the client.

Invoice Discounting Costs
These consist usually of a :-
Service fee which can be between 0.1% and 1% of turnover
Cost of money which is the interest charge over base for teh advanced money
There will also in a majority of cases be a minimum annual charge.

If you would like further details or you would like to speak to someone about invoice discounting please call Steve Thatcher on 0800 6800 759

If this is a game of poker, have we shown our hand too early

2008-10-08T08:59:00.004+01:00

Tuning in to the Today programme this morning I learned that the Government had announced its latest rescue package for UK banks.
The Government is going to make £50b available for banks to access if they require funds to shore up their capital. This is likely to be in the form of preference shares. The first question is where is the cash coming from if as we are being told constantly, the government has no available cash. Presumably it is borrowing this from the market place, that same market place that won't lend to other banks.
Secondly, what is the upside here for the British taxpayer? Bank shares are at a ten year low. Presumably over the medium term, with the guarantee of government support and a pledge that "we will do all that is necessary" these bank shares will rise considerably in value. Is the British tax payer getting the type of share that can be sold in due course and the benefit of the increase in share price realised?
The second element of the rescue is that the government looks like it is going to provide a guarantee for a bank which has to the market to replace it's short term borrowing used to fund its long term mortgage lending. eg HBOS may need to replace £100b of this type of funding in the next three years or so. If the money market will not replace this borrowing the government intends to act as guarantor for the banks ability to meet any repayments on this money, and to bolster the security given to secure it. Again, any shortfall on the security will be picked up by the British taxpayer!
My question this morning is whether the market will see fit to accept this latest offer. The government and the Bank of England have been intervening for months now by providing cash for liquidity, to little effect. This is a bigger plunge, and is significant, but the market is not driven by sentiment. My worry is that the market will effectively say, "Thanks British Government, that is a nice offer, but we think that you can go higher". Essentially they will play a game of poker and see just how far they can push not only our government but others around the world. If I am right and this is like poker, have we revealed our hand too early, and what else have we got to offer. Actually shouldn't we be calling the markets bluff and saying, that's it. Take it or leave it, there is no more.

Are we revisiting the 1970's

2008-10-07T11:10:00.002+01:00

Are we revisiting the 1970’s?

Wait long enough the saying goes and everything comes back in fashion. Well I don’t know about you but the pain and suffering being experienced by many people in the UK today is one fashion I could do without.
The press and social commentators are happily comparing now with the financial meltdown that occurred during the 1970’s. So, is it the case that there are parallels between what happened then and the beginnings of what we are experiencing now and are there any lessons that we can learn?
One of the good things that the current Prime Minister did whilst Chancellor of the Exchequer was to make the Bank of England independent. His brief to them was to keep inflation at 2%. If they failed to do so they had to write to him to explain why and tell him what they intended to do to bring it under control.
The Bank of England PPC (public policy committee) have been very successful in keeping inflation within its boundaries, but now they have had to write that letter as inflation rises above three percent. Cast you mind back to the 1970’s when inflation ramped up to nearly 27%.
The reason why inflation is so feared is that costs escalate, and as costs escalate so prices have to rise to ensure profits are maintained. As prices rise, so wages have to rise to enable goods to be bought, this causes inflation to rise again and so the cycle continues. It is unsustainable for businesses facing wage demands from employees seeing the value of their earnings plummet and so this is why inflation is so feared by businesses.
Back in the 1970’s the unions had a lot of power and held the government of the day to ransom. In the 1980’s Margaret Thatcher challenged the power of the unions and many say broke them. She did this to drag the country out of the doldrums it was in and to try to turn it competitive again. In this decade, union and government relations are peaceful and their leadership on the whole responsible.
So whilst the PPC has control over inflation in the country it can do little if anything about global inflation, which is being fuelled by an ever rising price in the barrel of oil, which is now over $140 a barrel. This has been caused in part by speculators, the demand for oil from emerging economies of India and China, and problems with refining capacity across the globe. In the 1970’s we saw this type of situation when OPEC cut production.
In addition we also have a global food crises in which a combination of crop failure and alternative use of land to grow crops such as for bio-fuels, has caused prices of staple foodstuffs such as rice and wheat to be in shorter supply. Certain countries have already experienced food riots.
All this is happening at the same time as banks restrict the availability of credit, due to the problems incurred in the US where banks over lent to sub-prime borrowers, who subsequently defaulted on their home loans. These loans were packaged into billions of dollars of security and traded. When the true nature of the value of these loans was discovered, it caused billions of dollars of losses to global financial institutions. This led to dissolution of their capital bases and the restriction of credit by those institutions both between themselves and the public.
In the UK, the high street, has for a number of years been kept afloat by consumer spending on credit card and other types of credit. Whilst times are good, this credit can be re-paid. The economy needs this activity to continue otherwise growth will stagnate.
In the UK we have also had rising house prices for a decade which has given society a false feeling of wealth. People thought that if they had equity in their property, they could continue to spend as even if they couldn’t repay the instalments they could always sell up and repay.
However there is now a major problem with this debt solution as the restriction in credit has meant that mortgages are not available for first time buyers who need a large loan to value. This has prevented many people getting on then housing ladder when coupled with the high prices of housing stock.
The lack of movement in the housing market is causing house prices to fall, maybe by up to 15% this year. With that envisaged, those same people who couldn’t get on the housing ladder, are now waiting to see how far house prices will fall. This is further exacerbating the problem and may well lead to falls in prices last seen in the early 1980s’
An additional problem is that with houses not being sold, builders are unable to shift stock, which has the knock on effect of causing those builders to downsize staff. As more people are made redundant, this has further negative implications and headlines.

With potential inflation and a slowing economy, we face every economist’s worst nightmare. Stagflation.

The economic news every day is gloomy. Nobody is quite sure where this is all going to end. The government argues that the economy whilst experiencing difficult times will not enter recession. Many others argue we are already effectively in one, no matter what the official definition might say. I say if it looks like and recession and feels like a recession………

Hold on tight, this is going to be a bumpy ride.

Steve Thatcher.
http://www.helpwithdebt.org/

Sure signs of a debt problem

2008-10-07T09:26:00.005+01:00

Many people struggle with debt and only take advice when they have anguished for months over where to seek a remedy. In the meantime they may have missed the triggers that would have warned them of an impending debt problem and as a consequence they may have built up more problems than simply owing a bundle of debt.
The sure signs of a debt problem
The following is a list of the typical progression that an individual will experience from debt free to debt meltdown. If you are reading this and recognise any of the stages then you need to pick up the phone to Help With Debt whose link is attached.
· Stage 1: Debt instigator (e.g. unemployment, lost orders, death, cash flow, redundancy, sickness, marital breakdown etc.)
· Stage 2: First missed payment and initial creditor pressure.
· Stage 3: 'Robbing Peter to pay Paul' – the loan to service debt principal
· Stage 4: Multiple debts coupled with increasing creditor calls.
· Stage 5: Contact with creditor - promise to repay (agreement to pay whatever they ask just to make the calls stop)
· Stage 6: The breaking of promises to leading to an escalation of calls and letters
· Stage 7: Individual responses, e.g. depression, frustration, anger, denial
· Stage 8: Legal pressure - letters from solicitors, court summons, court orders often leading to bailiffs action and then again agreeing to unrealistic repayments.
· Stage 9: Financial meltdown.
· Stage 10: Priority creditors pressure as even most essential payments are missed leading to bailiffs action, disconnection of utility supplies, loss of home.
· Stage 11: Final degeneration being mental breakdown. marital breakdown, domestic violence, deterioration of physical health.

If you recognise the above check this link for a solution. http://steves-helpwithdebt.blogspot.com/2008/10/some-debt-management-advice.html

http://www.helpwithdebt.org/

Some debt management advice

2008-10-07T08:37:00.005+01:00

In my role within Help With Debt we are always asked to explain what a debt management plan entails and what its benefits are. For those reading this blog who are unsure below are my top ten reasons for considering a DMP:-
10 reasons to do a debt management plan with Help With Debt

1. Continuing to struggle with payments you cannot afford, will cause stress. This may lead to ill health and marital or family problems. When you see the post piled on the doorstep, or see the answer phone bleeping, do you worry and stress. By engaging us these calls and letters will stop.
2. One call to us will mean that we can take away all the pressure that has been building for weeks or month.
3. You can increase or decrease your payments to suit your budget. Unlike an IVA it can be flexible to meet your personal circumstances.
4. You can propose this solution with as little as two creditors. As long as you have debts you cannot service in full we have the debt solution for you.
5. You can have a debt management plan with debts at any level. Most people will have at least three thousands pounds in debt. You can owe up to any level, but the greater the amount you owe, may mean other solutions are more applicable.
6. A Debt Management plan can be done with Help With Debt for as little as £100 per month. We believe that everybody is entitled to a debt solution. Most of our clients pay between £150 and £250 a month.
7. Your property will not be at risk. If your plan is agreed and maintained then no further action will be taken. Contrast this position to an IVA or bankruptcy.
8. In the majority of cases interest can be frozen and charges kept off.
9. It is an alternative to going bankrupt for those people that might be unable to continue in a profession such as a solicitor or accountant.
10. You can cease it at any time and consider another debt solution, such as an IVA or bankruptcy.

For more information visit http://www.helpwithdebt.org/

Blogger Buzz: Show off your Followers

2008-10-06T14:38:00.000+01:00

Blogger Buzz: Show off your Followers

Billions to banks so why is the market still falling

2008-10-06T14:22:00.006+01:00

God it makes me mad. I'm having a little scan through the BBC website again and see that the BoE is going to make billions more available to the UK banks. This on top of the billions that they have already had in an attempt to create a market for inter bank lending. A scheme which is patently failing.
The problem is that the banks cannot trust each other enough to know that they are worth doing business with. The result is stagnation in the financial markets.
This is a problem of their own making and yet they want all of us to pitch in and bail them out.
Here's an idea. Tell them to go hang. If they want to save their asses they are going to have to be honest with each other, put all their cards on the table and say this is my exposure, who will do business with me. If nobody will tough. The bank goes to the wall. The sooner some more banks fold the rest will soon learn a lesson and regulate themselves. They will realise that at some stage they will have to deal with each other again, and then the market will start to move again. Proper capitalisim at work!
What do you guys think. You with me or agin me.

For more information and articles please visit http://www.helpwithdebt.org/

How to beat a statutory demand

2008-10-06T13:54:00.006+01:00

I blogged earlier on my company's web page about a little known section in the consumer credit act that can be utilised to prevent or curtail collection activity from Debt Collection Agencies. I am re-printing the blog here.
How to beat a statutory demand
Now before we go much further this is not a guarantee, but we have found that there is a solution that puts the Debt collection agency on the back foot, when they send a stat. demand to you through the post.
Peoples first reaction when they get the demand is to panic. They see the words bankruptcy and a deadline of 21 days and they can’t think what to do. Our first reaction is to advise that in all probability the demand will not result in a petition for bankruptcy being issued at all. The statutory demand is being used by collection agencies as a debt collection tactic. If the debt has been incurred and there is no obvious dispute it may seem that there is no way out.
We may have the answer. It is using Section 77 of the Consumer Credit Act which obliges the creditor or the collection agency to provide a copy of the signed credit agreement, prior to having the right to collect the debt. They have twelve days in which to do so failing which the debt cannot be proceeded to be collected and any attempt to do so will be a breach of the Consumer Credit Act.
We have considerable experience and success in helping people stave off demands by using this tactic.

The statutory demand is being used now as a debt collection tactic and not because the DCA has any intention of following up with a bankruptcy petition.

For anyone interested in utilising this procedure, follow the attached link. http://www.helpwithdebt.org/

Do we have a nationalised banking system

2008-10-06T13:36:00.005+01:00

A strange thing is happening. First Northern Rock, then HBOS and now Bradford and Bingley. All different and yet all the same.
Each of these banks has in a way all become nationalised or subject to government intervention in recent months after exposing themselves to toxic loans or suffering from the collective failure of the world banking community to trust each other enough to lend to one another.
Northern Rock has been taken into effective state ownership and the Government has exposed the UK taxpayer to an unknown billion pound liability. The Government has effectivley guaranteed the whole of the savings in Northern Rock, something incidently that no other bank has the luxury or. The result of this is that the bank has been swamped with depositors cash from other banks who don't have this safty net. The result is that this bank cannot now take more deposits.
On the flip side the the loan book is looking pretty rotton. The bank is taking on no more loans, it is actively seeking to shrink it's loan book, by working away mortgages and raising it's lending rates to drive away customers. The result of this is that all that will be left are the Together Loans which were 100% mortgages combined with an additional 25% unsecured loan. These can't be passed onto anyone else as no-one is doing 100% mortgages. The poor old tax payer is stuck with these. So if these customers default on their repayments and houses are re-possessed either by the bank or in a bankruptcy situation, it is us as taxpayers who will carry the can.
In our business we see many Northern Rock customers who cannot service their loans and mortgages anymore. Some we are walking through bankruptcy.

HBOS was worked away from the edge of a cliff because the government engineered a deal with Lloyds which prevented a run on deposits. It remains to be seen what sweeteners were promised here to Lloyds.

Finally Bradford and Bingley was saved from collapse by a fire sale of the deposit book to Santander Group and the Government again taking over ownership of a horrid looking buy to let book which is already in serious default. It is said that the banks themselves will be taking the first £15b of losses through its deposit scheme.

The chancellor has repeatedly said that it will do what needs to be done to prevent a bank collapse without actually saying that it will guarantee 100% of deposits. How much longer it can do that with the Irish government and now the Germans, Greeks and Danes saying that they will all protect 100% of deposits remains to be seen.

For more information see http://www.helpwithdebt.org/

Welcome to my blog

2008-10-06T12:56:00.001+01:00

I already blog on my company's website but I have so much to say and so much information to impart that I thought I'd start here as well.
So check out http://www.helpwithdebtuk.com/ for total debt solution advice in the UK.