View Full Version : Companies that help manage debt?
Not that I'm in any thankfully or looking for one.
It's just I saw an advert for a 'debt helping' company, which seems to help you consolidate your payments, blah blah.
I don't know anything about these to be frank, but I can imagine them screwing someone over even more, and them making money, because why else would they exist?
Anyone know how these companies even make their money?
Speedy Claire
17-02-10, 06:02 PM
They put you on a debt management program, you provide a list of the companies you owe money and from that a payment is worked out which you pay to the debt management company. They then approach the companis with an offer of a small but regular monthly payment, the debt management company will keep a percentage of what you pay them so say, for example, you pay the DMC £100 a month they keep the first £20 and then divide the remaining £80 between your debtors.
timwilky
17-02-10, 06:02 PM
Not that I would touch them with a bargepole
They reschedule your debt, arrange repayment terms and charge a huge commission that they load onto your debt. You then pay them smaller amounts at huge interest for ever and a day. They make a fortune out of those silly enough to get into debt and too stupid not to do something about it themselves.
maviczap
17-02-10, 06:03 PM
Nice fat interest rate on the loan they give you to pay off all your other loans. But less than seperate loans combined
Tis not the way to do it either
you pay the DMC £100 a month they keep the first £20 and then divide the remaining £80 between your debtors.
[-XThats madness. Why would anyone just pay someone to pay your debts for you. Get a thinking cap on and do it yourself. If you're in debt, you can't go spending money on something as ridiculous as having some basic maths done for you!
Now I know how they make their money. Thanks for info!
maviczap
17-02-10, 06:10 PM
There are plenty of stupid people out there who will go down this route, but then they're the type to buy everything on their credit cards in the first place. Buy now, think about paying for it later
Speedy Claire
17-02-10, 06:10 PM
Not that I would touch them with a bargepole
They reschedule your debt, arrange repayment terms and charge a huge commission that they load onto your debt. You then pay them smaller amounts at huge interest for ever and a day. They make a fortune out of those silly enough to get into debt and too stupid not to do something about it themselves.
I think that`s a bit harsh Tim.... sometimes people get into debt thru no fault of their own but just bad circumstances. Some people wouldn`t then know how to go about clearing it themselves or get advice on how to do it which lands them even further in debt.
IMO the debt management program can actually be a good thing if you choose a reputable company. A friend has recently enlisted the help of a company and thats where I get the above figures from. She pays £100 a month, they keep £20 then the rest is split amongst the 8 companies she owes money too, they have calculated her debt will be cleared in 4 years. She says the £20 is well worth it and she doesn`t mind paying because she now has peace of mind. Any letters she receives from her debtors are put straight into pre paid envelopes and directed to the debt management company, if she receives a phone call she doesn`t have to speak to them, just give them the number for the DMC.
I know some people might think £20 is a lot but she was out of her mind with worry... this arrangement suits her and leaves her stress free to spend quality time with her kids. She no longer has to fear opening the front door to bailiffs and she`s a few hundred pounds a month better off since making just the one payment to the DMC.
I understand the peace of mind aspect for some people, but they are taking a whopping 20% of her payments (maybe a tad less give or take the reduced interest they agreed with the other companies). That's still a pretty huge cut from payments made by someone whose in enough debt to have requested help.
Well they must make a killing out of it.
Speedy Claire
17-02-10, 06:18 PM
I think there`s a lot of very judgemental people on here. Some of us might be lucky and mature enough to not get into debt in the first place but as I said above sometimes the debt arrives on your doorstep through no fault of your own ie. thru ill health, divorce etc.
Years ago I was in the position my friend is in and I wish I`d gone down the road of a debt management company. I didn`t have the confidence to approach the companies I owed money to, got what I thought was good advice and that led to even more debt. I didn`t have credit cards, I didn`t have overdrafts, I didn`t have any holidays, I didn`t even have a car but what I did have was a very young child and a life as a single parent after my husband left. I not only had to try and manage with a monthly income that was more than halved after his departure but I also had to deal with all the debt that he`d unknown to be managed to accrue.
All I`m saying is don`t be too hasty to criticise others for debt... they might not have been as lucky in life and life choices as yourself but it doesn`t make them stupid.
Speedy Claire
17-02-10, 06:20 PM
I understand the peace of mind aspect for some people, but they are taking a whopping 20% of her payments (maybe a tad less give or take the reduced interest they agreed with the other companies). That's still a pretty huge cut from payments made by someone whose in enough debt to have requested help.
Well they must make a killing out of it.
I do understand what you`re saying and yes to an extent I agree that the companies are cashing in on peoples misfortune but I think peace of mind is well worth that 20% if it means you no longer have to worry and can start to enjoy life again
Ah you've got the wrong end of the stick. Nobody said everyone can manage their own debts. Some may not be able to. But their must be some people who do use them who could have probably avoided it. No ones making sweeping statements.
And what I said wasn't wrong or judgemental. The companies are indeed taking a huge cut if the figures you stated are similar to the others, and as a consequence they are making a killing from it, otherwise they wouldn't be around...all I'm saying.
Speedy Claire
17-02-10, 06:24 PM
Ah you've got the wrong end of the stick. Nobody said everyone can manage their own debts. Some may not be able to. But their must be some people who do use them who could have probably avoided it. No ones making sweeping statements.
And what I said wasn't wrong or judgemental. The companies are indeed taking a huge cut if the figures you stated are similar to the others, and as a consequence they are making a killing from it, otherwise they wouldn't be around...all I'm saying.
Sorry Thulfi but my comments weren`t directed at you... more to those who consider people "stupid" for having got into debt
Speedy Claire
17-02-10, 06:30 PM
Ah sorry, my bad.
:smt023 :grouphug:
ceeshaw
17-02-10, 06:45 PM
Debt Management Companies are just one option. There are more and more charities that do offer to help those in debt.
Getting a creditor to bend on the terms of your debt requires a degree of collective bargaining. Many CC companies would outright refuse a request from a customer to 're-arrange' their debt - debt management companies know who to speak to, what terms can be bargained and keep some of the repayment for themselves. The creditors get something back (as opposed to perhaps nothing), the debt management companies get to keep a cut, and their customers pay for some peace of mind and a helping hand as they climb out of a hole.
Beware though: 're-arranging' your debt like this is usually done in the form of an 'IVA' (Individual Voluntary Arrangement) and a record of this will remain on your credit record long after you've repaid your debts - making it much more costly (if at all possible) to get credit again for some time.
I've seen successful people come unstuck very quickly and land themselves in plenty of 'debt hurt' through little fault of their own... lose a job, partner leaves, illness arrives etc. Lady Luck can be very cruel.
timwilky
17-02-10, 06:48 PM
I am sorry that you think me harsh in my beliefs.
Debt causes nothing but misery, can lead to mental illness, crime and even suicide.
Of course everyone at some point in their lives has carried an element of personal debt. Even if for a mortgage. I have seen 20 years ago my brother loose his house because he can no longer afford it. The first I knew of his problems was when he turned up at my house with his wife and processions in a van saying can we please stay with you.
I am currently paying my sons mortgage as he has had no work for the past 4 months and not entitled to any help. I have paid off the bailiffs because my younger daughter would rather buy clothes than pay her council tax.
People get into debt in many ways. For the stupid it is the buy now pay one day culture, for others it is a well paid job disappearing overnight. However, these are factors that should have been taken into consideration when taking on debt.
Thereafter, your approach to how you get out of it is important. Don't delay, talk to your creditors, agree repayment plans. move heavy credit cards to 1 year interest free and be a card tart. whilst you are managing your debt, being seen to reduce it is all positive.
Doing nothing about debt to the point you need the help of debt management companies, IVAs etc is stupid and I have no hesitation in telling fools who risk the roof over their heads for the sake of a holiday, car, clothes etc. that in my opinion they have been stupid.
kellyjo
17-02-10, 06:54 PM
There are plenty of stupid people out there who will go down this route, but then they're the type to buy everything on their credit cards in the first place. Buy now, think about paying for it later
Not everybody in debt is stupid!! I never set out to be bringing up 3 children on state benefits, but unfortunately thats where i find myself.
The father of my kids earns a good wage but is too selfish to pay up any decent monthly amount for them and if i force the issue the government will just reduce what they pay me accordingly anyway. So i am totally reliant upon state benefits.
Out of the money paid to me for the children i have to find £200 a month on top of my housing benefit just to pay the rent, leaving barely enough for the bills. So what am i supposed to do, i have no credit cards, my overdraft is maxxed out, i have outstanding debts from my marriage and 3 growing kids.
As an example, my daughter needs new school trousers and school shoes to go back to school next week, she hasnt mistreated those she had, but she just keeps growing. Having already borrowed money to feed them this week (which i need to repay next month leaving next months budget tight before ive even got there) my only method of sourcing these was a store card. Now i consider myself an intelligent, responsible adult, but find myself in an impossible position.
The first thing i do every morning is log into my bank account to check activity and i have software i use to budget 3 months in advance, i have become a master at juggling money, i know when every penny is coming in, and when it will be going out.
Unfortunately there are too many people in my situation and i can see that for some, these debt companies may be of help. I am trying my best to remain in contact with those i owe and have set up repayment plans direct with them as i am determined to keep a good credit rating, on the off chance that one day i just might be in a position to apply for a mortgage myself. Unfortunately thats not in the foreseeable future as the government offer me very little incentive to return to work. I am in a difficult situation, it is a constant battle to keep my head above water and sometimes i need to get involved with creditors, this does not make me a stupid person and if one day i decide that one of these companies may be able to improve my monthly financial situation to free up valuable cash for the kids then i may need to use one, but it will be a responsible, well researched decision and not one made out of stupidity.
Sorry for the rant, this is a particularly touchy subject for me at the moment :-(
Speedy Claire
17-02-10, 07:29 PM
Unfortunately Kelly there`s more and more people finding themselves in your situation and I know you`re not looking for sympathy, it does actually help at times to let off steam x
I do feel for you and I can`t offer any advice other than despite times being hard you seem to have a good head on your shoulders and are acting really responsibly and credit to you for that.
I hope your situation improves and one day when the kids are grown you`ll look back and think "christ! I don`t know how I coped and managed but I did" xxx
Dave20046
17-02-10, 07:35 PM
I would look to the government/charities rather than on eof these 'debt consolidation companies' or whatever - not that I've looked into it at all just hear them tens of times a week via the radio and sound proper scammy.
Not everybody in debt is stupid!! I never set out to be bringing up 3 children on state benefits, but unfortunately thats where i find myself.
The father of my kids earns a good wage but is too selfish to pay up any decent monthly amount for them and if i force the issue the government will just reduce what they pay me accordingly anyway. So i am totally reliant upon state benefits.
Out of the money paid to me for the children i have to find £200 a month on top of my housing benefit just to pay the rent, leaving barely enough for the bills. So what am i supposed to do, i have no credit cards, my overdraft is maxxed out, i have outstanding debts from my marriage and 3 growing kids.
As an example, my daughter needs new school trousers and school shoes to go back to school next week, she hasnt mistreated those she had, but she just keeps growing. Having already borrowed money to feed them this week (which i need to repay next month leaving next months budget tight before ive even got there) my only method of sourcing these was a store card. Now i consider myself an intelligent, responsible adult, but find myself in an impossible position.
The first thing i do every morning is log into my bank account to check activity and i have software i use to budget 3 months in advance, i have become a master at juggling money, i know when every penny is coming in, and when it will be going out.
Unfortunately there are too many people in my situation and i can see that for some, these debt companies may be of help. I am trying my best to remain in contact with those i owe and have set up repayment plans direct with them as i am determined to keep a good credit rating, on the off chance that one day i just might be in a position to apply for a mortgage myself. Unfortunately thats not in the foreseeable future as the government offer me very little incentive to return to work. I am in a difficult situation, it is a constant battle to keep my head above water and sometimes i need to get involved with creditors, this does not make me a stupid person and if one day i decide that one of these companies may be able to improve my monthly financial situation to free up valuable cash for the kids then i may need to use one, but it will be a responsible, well researched decision and not one made out of stupidity.
Sorry for the rant, this is a particularly touchy subject for me at the moment :-(
Women like this (http://www.thesun.co.uk/sol/homepage/woman/2854895/How-taxpayer-funds-single-mother-of-three-Pams-luxury-life.html)(or the likes of the sun!) don't help paint a good picture of single mums I guess.
ceeshaw
17-02-10, 07:50 PM
I offered one of my staff (a single mum) more hours. She worked out that the extra money she would earn would mean she received less benefit to the point where she'd be working more hours for the same money??!!!
She declined my offer. Can't say I'd blame her. Sorry, gone a bit off-thread here!! She was great though - some of my best staff have been single Mum's.
punyXpress
17-02-10, 07:56 PM
A lot of these ' consolidation ' merchants seem on a par with the ' buy your old gold ' people. They come out of the woodwork when times are hard and look on those with mountains of debt as east prey.
TimWilky was right saying the miseries excessive debt causes but he missed out the biggest one - the toxic debt encoraged by Tony & Gordon. We and our children / grandchildren will be paying THAT ONE off for decades!
kellyjo
17-02-10, 07:59 PM
I offered one of my staff (a single mum) more hours. She worked out that the extra money she would earn would mean she received less benefit to the point where she'd be working more hours for the same money??!!!
She declined my offer. Can't say I'd blame her. Sorry, gone a bit off-thread here!! She was great though - some of my best staff have been single Mum's.
My position exactly - i could work 15 hours a week and be only £20 better off - would you?
I act for one such client. She got into serious debt on credit cards: the reasons are irrelevant but suffice to say it wasn't through living a luxury lifestyle. As Claire suggests, this lady was out of her mind with worry, she thought she was about to lose her home, and the doc had given her citalopram.
On my advice she has sacked the debt management company (which also charged 20%) and she has appointed me as her debt agent. Do remember that debt management companies are unregulated. Creditors tend to listen to a solicitor, and I think that I have achieved a much better solution for her. She will be out of debt in 4 years, not 9. I am not charging her - there are good reasons for this - in fact I was pleased to help.
My client was not too stupid to manage her own way out. The real problem was that she was so worried she couldn't see the way out. She struggled and struggled, and it took quite a while to make her realise that compared to some of the people I act for, she wasn't that bad.
I mention some I act for - I have another client, a self employed builder, who owes slightly over £100K on credit cards. Yes - £100K. And he has no means of paying it as he has no work. I'm helping him with this, too.
On balance, these companies probably do a useful function, but I see so much of this sort of thing, I can't stand people who prey on the vulnerable.
Ed
ArtyLady
17-02-10, 11:08 PM
I would look to the government/charities rather than on eof these 'debt consolidation companies'
...
Like these? http://www.cccs.co.uk/Home.aspx
hindle8907
18-02-10, 07:34 AM
they just get you in more debt i would think by spreading the payments over 10000 months lol.
Sir Trev
18-02-10, 08:17 AM
I rate these debt management companies in the same bracket as ambulance chasing "xx4u" type companies. (I won't call them solicitors as it's not right to tar someone like Ed with thier tainted brush). A lot of them are in it for themselves and make a LOT of money from misery.
It's true that some of them may be good at bargaining with your creditors on your behalf and for people less confident than KJ they may be a good way forward. However you would probably get better and much cheaper advice from an indepentant financial advisor (IFA). They would charge a consultation fee and work out a better debt vehicle for you, such as a single loan with sensible rate to stop the worry factor, and advise on how to help yourself. As they make commission on the new policies you take to replace the (probably poorly planned) old ones it will not cost anything like 20%.
Alpinestarhero
18-02-10, 08:21 AM
Sorry Thulfi but my comments weren`t directed at you... more to those who consider people "stupid" for having got into debt
SC, i agree with you...I have quite a bit of debt. Its a student debt, so sort of acceptable (its not like I brought loads of things on a credit card that have now been thrown away!) but even so, debt is debt. Somethings you can't help getting to debt for - buying a house, going to university, bringing up children.
The debt managment companies may end up costing someone more, but if you can only afford to pay a little bit of money at a time (because you get wages in a trickle innit) then it does make things easier. The extra money you have after you've paid for everything else can be put away, and at the end of the year or whateer, you might have a tidy little sum to pay off an extra portion of the debt (if that is allowed)
Not that I'm in any thankfully or looking for one.
It's just I saw an advert for a 'debt helping' company, which seems to help you consolidate your payments, blah blah.
I don't know anything about these to be frank, but I can imagine them screwing someone over even more, and them making money, because why else would they exist?
Anyone know how these companies even make their money?I can speak from personal expierence. There are 4 types of 'debt management'. One is these companies as you say who consolodate your loans over a 25 year period. However you can only do this if you have a home. It ends up costing just as much if not more. Then you have Debt management. This is where you pay a fee and a good salesman phone up your creditors and say that you cant pay and arrange for a payment plan. The cridtors can still call in thier debt as and when they feel like it and take you to court and all manner of things. Then there is an IVA (Which im in) This is backed by government legislation. Its a proper insolvancy practitioner that handles this. They contact your creditors say that you cant pay. If over half agree to the plan, then the ohter 50% are bound by law to comply. A payment plan, based on your income is worked out over a 60 month period, the creditors then have to make a claim on it. They stop all the interest, so all you pay is the capital back, and this, and in my case, equates to 30%. Then there is Bankruptcy.
Was i stupid to get into debt, yes of course, but it is a never ending spiral one that i seriously couldnt see the end of. I was paying out 85% of my salary on cards and loans. I have been in 'debt' since i was 18 and my 1st car. What have i to show for a very considerable amount of money, naff all. The only thing that i have owned outright from the day i bought it is the bike. Woudl i get in debt again, yes probably, this time though it will be a house and never ever ever have another credit/store card as long as i shall live. Living with just the cash in my pocket with no overdraft, or cards to fall back on, puts things into perspective thats for sure.
Drew Carey
18-02-10, 09:11 AM
Thought I would give my view on this. I am one of these so called "stupid" people.
Over a period of 5-6 years starting in 1999, I got into a lot of debt, to the tune of approx £20k. I am not going into how / why this occured and I regret every penny of it, but it happened and I have dealt with it.
For many years I was servicing the debt, but it slowly got out of control, it came to fruition one day as I did honestly felt like suicide might be the only option. I was getting threatening letters from all sorts of debt collection people etc. This all occured at the same time as splitting up with my Ex and then having to relocate because of it all. I felt, at the time, that I couldn't deal with it at all.
I contacted Baines & Ernst, who went through everything with me. They reassured me, they spoke to me like a human, not just a statistic. Now I know it was only "sales" talk, but it was what I needed to hear at the time. In return for their service I paid them a fee of 8%. We went through my finances, they allocated spending money in the budget and came up with a sensible figure. They then did all the talking with all the creditors etc and helped no end. One of the main ways they helped, is that you no longer have to worry about speaking with all the different creditors. When you moved address, B&E dealt with the change in details with them all. I had a total of 8 creditors, so it made the process much easier.
Moving forward to now.....3 or so years ago, I decided to do it on my own. However, one thing was certain, for a small fee, which 8% I think is reasonable, B&E had agreed all back charges, all interest, all fees were scrapped on all my debts. So immediately it meant that the 8% was worth paying. Secondly, most defaults were removed by the creditors as part of the agreement. This basically meant that for the fee, that saved me money in the long term, the DMC had done all the work for me, so that when I decided to go it alone, I simply called each creditor, informed them of the change and all is now happy and rosey. I now contact them every 6 months and simply give them an update. When one debt finishes, the money from that simply gets rolled into one of the others.
From an initial debt of nearly £20k, I am now down to approx £4k, its all still interest free and all still at an amount that I can afford to pay.
So even though I am no longer with them, some debt management firms are good and some do help......in the short term. Agreed, in the long term do it yourself.....but why not get the clout of the DMC to do the donkey work for you to start with. Getting into debt was my own fault and even though I have family etc that could afford to bail me out, I want to pay this all off myself and want to get square. In the beginning though, I felt I could never see the light at the end of the tunnel......but when in the position I was, the DMC was brilliant.
(One word of warning though.......agree that there are now charities that will help you do this etc......however, when I started out I was not aware of them. So I would suggest people use charitable DMC rather than commercial.)
Dave20046
18-02-10, 09:14 AM
moneysavingsexpert and the mse forums have a lot of debt fighting stuff anyone reading might find helpful.
Drew Carey
18-02-10, 09:16 AM
To back up what Viney has said, please DONT confuse debt consolidation LOANS with traditional debt management.
Traditional debt management stops all interest and fees etc. So the debt does NOT grow. You then pay it back over an agreed period of time at an agreed rate.
The debt management loans are crazy, as they simply take the debt and restructure it against property, such as a house and usually with massive amounts of interest over very long periods of time.
EssexDave
18-02-10, 10:22 AM
They put you on a debt management program, you provide a list of the companies you owe money and from that a payment is worked out which you pay to the debt management company. They then approach the companis with an offer of a small but regular monthly payment, the debt management company will keep a percentage of what you pay them so say, for example, you pay the DMC £100 a month they keep the first £20 and then divide the remaining £80 between your Creditors.
They also talk to your creditors and negotiate repayment terms. Generally, this is a waste of time as most of these plans fail, as you have to sacrifice a lot. Eg the DMC will sit down with you and go through your income/expenditure. Your creditors do not have to agree to any plan they propose.
Essentially, a Debt management plan is an unofficial IVA. The DMC will write to your creditors with a proposal for the amounts you can pay over what period etc and then you pay it.
As far as I'm aware it is not legally binding (I can check this if you really need to know - PM me) and as such the companies can change their mind on the amounts they want. Although I can't remember if that is purely for other informal arrangements.
Just as an aside; I work in insolvency (for the official receiver) and so if anyone wants any information of advice you're more than welcome (confidential of course).
Drew Carey
18-02-10, 10:34 AM
They also talk to your creditors and negotiate repayment terms. Generally, this is a waste of time as most of these plans fail, as you have to sacrifice a lot. Eg the DMC will sit down with you and go through your income/expenditure. Your creditors do not have to agree to any plan they propose.
Essentially, a Debt management plan is an unofficial IVA. The DMC will write to your creditors with a proposal for the amounts you can pay over what period etc and then you pay it.
As far as I'm aware it is not legally binding (I can check this if you really need to know - PM me) and as such the companies can change their mind on the amounts they want. Although I can't remember if that is purely for other informal arrangements.
Just as an aside; I work in insolvency (for the official receiver) and so if anyone wants any information of advice you're more than welcome (confidential of course).
Correct, the agreement is not legally binding (whereas an IVA is). However, the creditors tend to agree to your payments providing they don't breach their minimu limits. This is the amount that the creditor would require as a minimum; these tend to be much lower than you think. For example, one creditor I contacted recently, who I am paying £39 per month too, explained, "No worries, your payments are all fine and in fact you could drop it to £11 per month if you had issues." The figures are usually based on the amunt outstanding aand what they consider the maximum amount of time remaining.
I also found that when going through the budget etc they were very realistic as to what spending monies would be required etc. The plans DO work, but not for everyone.
Essex, no a std DMC agreement isnt legaly binding. it was one of the things that made me go the IVA route. The creditors can change thier mind at any time. Debt is so just damn east to get out of control. Anyone who says it stupid must be VERY diciplined with thier money or earn enough not to go the debt route. My misshappenings were in excess of £50k! I have 19 payments and i shall be debt free for the 1st time in 20 years! Party on that day i can tell ya
Essex, no a std DMC agreement isnt legaly binding. it was one of the things that made me go the IVA route. The creditors can change thier mind at any time. Debt is so just damn east to get out of control. Anyone who says it stupid must be VERY diciplined with thier money or earn enough not to go the debt route. My misshappenings were in excess of £50k!
Pretty much the same boat as me Viney, mine were in excess of £42k and I was paying over £1100/month back on loans/CCards which was only really paying off the interest. I think I calculated that it would have taken me over 20 years to pay back.......
....or take out an IVA which reduced my monthly payments to £350/month over 5 years, then I'm debt free. The IVA only stays on your credit record for a total of 6 years too so not a major issue.
One thing I do know is that I'll never ever have a credit card again and I only buy stuff now that I save up for. It's satisfying knowing that everything I've got is owned by me and not some bank.
Only 14 months to go in my IVA then I'm free.
If you're in more than £20k debt then taking out an IVA is kind of a no brainer, and I wouldn't touch a debt management loan again with a barge pole, been there, done that.
Funnily enough my office is one floor below the Insolvency Service in London :rolleyes:
EssexDave
18-02-10, 10:51 AM
I was having a discussion yesterday where the amount of debt came up. To me, personally, £20k is a phenominal amount of debt. However, I've started to become numb to it, as daily I deal with people well over £100k debts.
Debt is a real problem, and half of the problem is the institutions that are willing to offer people money who are already in serious financial difficulty. Payday loans at 2000%apr which they have no prospect of paying off in the short term given.
But yes, creditors would rather you pay them something than go bankrupt in which they generally lose everything. (Official Receivers' fee is £1715) and most people going bankrupt do not have enough assets to cover that + agents fees + a resonable distribution
EssexDave
18-02-10, 10:51 AM
Funnily enough my office is one floor below the Insolvency Service in London :rolleyes:
Bloomsbury street?
timwilky
18-02-10, 10:52 AM
Yes, I say debt is stupid, I grew up in an age when if you want something you save up for it. A letter from the bank managers would be something to fear.
As I said earlier, I saw the misery my brother went through when he had his house repossessed. I was always determined never to be in a situation where I placed myself or my family at risk.
I have once had to take out a bank loan to buy a car. The conditions that the bank lending officer imposed would these days be illegal. You cannot have the loan unless you take out our insurance policy on it etc. These days credit is easy, too easy.
I know damm well that people suddenly find themselves in changed situations. My own son is a very good example. But far too many seem to think they can borrow their way out of trouble.
I am not disciplined. I make far too many spur of the moment purchases. I want a new bike, guess what I am saving for it.
Bloomsbury street?
Indeed! :D
EssexDave
18-02-10, 10:59 AM
Indeed! :D
Do you ride to work? I was there a couple of weeks ago. Nice building.
Gotta go to holloway next week for some training. Fun...
Having seen drew go though what he has, the DMC has worked for him....
however we are both now witnessesing my sister and brother in law going though hell.... which is now resulting in a personal bankrupcy for my brother in law! :-(
Without going into to much detail, yes they have been stupid in spending, yes Drew tried to help them a long time ago as he could see the route they where heading down, but also his own business has also been presented with a wind up order. But I am the first to tell them, they should have asked for help a long time ago and stopped spending and answer the phone calls to the banks rather than avoiding them!
Looking at it he says it amounts to 65K maybe a bit more... they stand to lose the 2 vehicles they have and a lot of other things.... the only silver lining is that because they moved house last march, there is no money in the house so they have been advised that they will not be forced to sell as there is no point, just need to keep up the mortgage payments! We have seen this get worse and worse over the the months since August last year. And at any time when we have tried to help or talk to them about it... we got told it was fine.
I have debt (student debt) which will be gone in 5 years.....I do not believe that everybody who gets into debt is stupid, there are really reasons for it! I've seen how a DMC (not consoldation loan company) has helped Drew, and have also seen how he is building on what they did and paying it back quicker!
Yes, I say debt is stupid, I grew up in an age when if you want something you save up for it. A letter from the bank managers would be something to fear.
As I said earlier, I saw the misery my brother went through when he had his house repossessed. I was always determined never to be in a situation where I placed myself or my family at risk.
I have once had to take out a bank loan to buy a car. The conditions that the bank lending officer imposed would these days be illegal. You cannot have the loan unless you take out our insurance policy on it etc. These days credit is easy, too easy.
I know damm well that people suddenly find themselves in changed situations. My own son is a very good example. But far too many seem to think they can borrow their way out of trouble.
I am not disciplined. I make far too many spur of the moment purchases. I want a new bike, guess what I am saving for it.
Totally agree. I was stupid and after I finished uni (with quite a bit of debt) I stuck my head in the sand and hoped that it would solve itself over time :lol: Lesson learned.
That's why I took out an IVA 4 years ago; I wanted to be debt free when/if I start a family and be in a good financial position. Worrying about money really sucked and I got really really depressed at one point, but the feeling of dealing with it head-on overcame that.
Do you ride to work? I was there a couple of weeks ago. Nice building.
Gotta go to holloway next week for some training. Fun...
Yep, every day. I leave the bike in the garage downstairs instead of the bike bay in Bedford Avenue. One of the reasons I'm still in this job is the secure parking :safe:
What were you doing there? I work for the HFEA on the 1st floor (sorry, really off topic now).
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