In January, a reader told me about a loan he had for £650, with 18 monthly repayments of £147. This adds up to a total repayment of £2,650 - an eye-watering amount and more than four times what he borrowed. At first I thought this was probably taken out years ago. But in fact, it was borrowed in late 2018 from Loans2Go. Loans2Go also offer logbook loans, but this article is just about their … [Read more...]
Debt news – June 23
The news story of the week has to be the Treasury's announcement of the breathing space to start in 2021. But Panorama's Easy money, tough debt? should be watched by anyone with an interest in personal debt in Britain. And if the Mail's as yet unconfirmed scoop that the Money Shop goes under is correct, that will be another lot of payday loan victims who do not get full … [Read more...]
Money Shop to close? Implications for refunds
The Daily Mail has just published Hundreds of jobs at risk as payday lender The Money Shop goes under following 'unprecedented number of customer complaints' which says: In a letter sent to employees and seen by This is Money, ICL said it plans to close or sell off all of its UK stores following 'poor financial performance' and an 'unprecedented number of customer complaints'. The Money Shop … [Read more...]
Panorama’s “Easy money, Tough debt”
Panorama on 17 June 2019 showed Easy Money, Tough Debt? It's on iPlayer for 11 months if you missed it. It covered a wide range of high cost borrowing, with stories from people who had problems with payday loans, with high-cost credit cards and catalogues, and guarantor loans, with a borrower and a guarantor being featured. Everyday stories of high cost borrowing For a debt adviser, these … [Read more...]
The 3 best ways to check your credit score & records – all free!
Keeping an eye on your credit reports is a good idea, but how should you do it? In 2019 there are more than sixteen different ways to check your credit record! The myth of a single credit score You don't have "one credit score" or "one credit record". You have three different ones. This is because there are three main Credit Reference Agencies (CRAs) in Britain: Experian; Equifax; … [Read more...]
“Will settling defaults help me get car finance next year?”
A reader, Mr W, asked: I had credit cards and got myself in a mess when getting balance transfers but keeping the old cards. Then I lost my job last year, but I am now working again. I have defaults ranging from 2015 to last month. All my debts add up to about £6,500. Many of them have offered me a discount if I clear the outstanding balance. I have been offered a 20% discount on a £3,500 … [Read more...]
Debt news – June 16
My pick of last week's news is the Supreme Court judgment in Samuels v Birmingham City Council but if you want an interesting read you may not have seen, look at Consumers Are Becoming Wise to Your Nudge. On a personal note, I was very proud to be elected as a Trustee of the Institute of Money Advisers this week. Tweet of the week @KarlTurnerMP asked @MelJStride if he could have a … [Read more...]
How to repair your credit record after bankruptcy
Bankruptcy badly affects your credit record for six years. This article looks at what should happen to your credit record when you are discharged from bankruptcy after a year. Even if you have no intention of getting into debt again, a good credit score makes it easier to rent a house, get a mobile contract and it's essential if you want a mortgage. There are three different Credit Reference … [Read more...]
Debt news – June 9
My pick of last week's news is the FCA's final rules on overdrafts. Tweet of the week Day made by getting a bailiff company to repay almost £700 to a constituent who was intimidated into finding money she had no liability for. But the behaviour of the bailiff in question was so, so wrong. And how many more such cases are there? — Karen Buck (@KarenPBuckMP) June 5, 2019 Debt … [Read more...]
Will new rules on overdraft fees help you? Will simpler mean lower?
On 7 June 2019, the bank regulator, the FCA, announced its new rules about overdraft charges. It calls these: the biggest shake-up to the overdraft market for a generation. The new rules will come into effect from April 2020 - that's a long while to wait if you are currently paying very high overdraft fees. And how much effect will they actually have? The changes to fees - getting … [Read more...]
“What if I forgot to put a debt on my bankruptcy application?”
A reader asked: I am thinking of filing for bankruptcy. Some of my debts go back quite few years. I tried a DMP and an IVA that failed. I’m behind on my household Bills too. I’m single mum and find hard to cope with all this stress. I finally plucked the courage to do the form. I have at least 13 creditors, some of these details I took off my IVA creditors list but some have passed the debts … [Read more...]
The credit card suggests you pay more … but what if you don’t?
Have you had a letter from a credit card, store card or catalogue suggesting that you should increase what you pay each month? Hundreds of thousands of these letters are going to people who have only been paying the minimum amounts for a long time. Here is one: If you're still paying more in interest, charges and fees than you're repaying your credit card debt in nine months' time, we'll … [Read more...]
Debt news – June 2
My pick of last week's news is 'Don't ignore' credit card warning letters. Tweet of the week But will science ever find an answer to Anne Widdecombe? https://t.co/p19Lsx1bJd — Stephen Fry (@stephenfry) June 2, 2019 Debt news 'Don't ignore' credit card warning letters BBC: Rules set by the City regulator mean that many people will now be receiving a second reminder suggesting … [Read more...]
“My overdraft limit has gone up & I don’t want any more debt”
There are thousands of people in Britain in 2019 who will know how Mr D feels when he asked: We moved into our own place 18 months ago. I have have had to ask for my overdraft limit to be increased several times when I can't afford the bills. It is now at £2,000 and I am paying more than £60 a month in fees. I am trying to reduce it but really struggling as I am the only one working while my … [Read more...]
Practical ways to help a friend with debts – tea, biscuits & a stapler
Your friend or a relative is very worried about their debts and doesn't know what to do... they may be overwhelmed by the size of their problem or they are scared of finding out how big it is. This article looks at the best ways to give some practical help in this situation. The answer usually isn't money You probably shouldn't lend or give them money. Certainly not at the beginning until it … [Read more...]
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