Have you had a letter from Prime Location Services? A typical letter from them says: I am instructed to contact you as I believe you may be the person our client wishes to make contact with. Our trace team have made enquiries and have advised that your details have changed to the above address. So it doesn't mention why they are trying to contact someone with your name. Their website gives … [Read more...]
My DMP payment is too high
A reader asked if it is OK to reduce your debt management payments when you need to? This is a common problem for people in Debt Management Plans (DMPs) in 2017: inflation is at a four year high, fueled by the weakness of the pound after the Brexit vote, which increased the price of imports; Britain is in the grip of a pay squeeze, heading for the worst decade of income growth for over … [Read more...]
Debt news – July 16
Two big bits of news last week: Lloyds takes a radical approach to overdraft fees and the Bank Of England's Credit Conditions survey. Tweet of the week This caught my eye for obvious reasons... the article is interesting if you are an economist. Retracing the history of UK banking, using a new database and the CAMEL analytical framework. https://t.co/CTpKcQFuSX #BankUnderground … [Read more...]
Lloyds overdrafts – new, simple charges are a cut for most borrowers
On July 17th Lloyds Bank announced major changes to the way it charges for overdrafts - a massive simplification. The new charging will be introduced in November for 20 million Lloyds, Halifax and Bank of Scotland accounts. Most customers will gain. This includes three million people in old style basic bank accounts - they are winners in the new system, a group that has been badly treated by … [Read more...]
Answers to the Quiz about types of debt
SPOILER ALERT Have a go at the quiz here before reading this page! A reminder: all the examples are for someone living in England, Wales or Northern Ireland. The same general diagram may apply in other countries, but the types of debts, the timescales and credit recording may be very different. A brief (no jargon!) explanation of my terms: Priority = a debt that is important, because … [Read more...]
Do you know your debts? A quiz!
Is that debt is a priority? Could you get a CCJ for it? Why isn't it on your credit record? If you have problems with your debts, it helps to understand why different debts sometimes have to be handled differently. Getting one wrong could be a big mistake! Here is a quiz, seeing if you can place some debt examples into the right place on the diagram below. Whether you think you are a debt … [Read more...]
Debt news – July 9
My pick of last week's news is Citizens Advice's excellent report on Universal Credit. But for a glimpse into the future, read the American Banker article on high tech, low effort loans. Graph of the week Play the very short video here to see the graph build: WATCH > How a working single parent with two kids has fallen further from making ends meet: https://t.co/Tc56TCmRNQ … [Read more...]
Payday loan refunds when last loan not repaid
You can get a "refund" for expensive payday loans if you still owe money on your the last loan. It can even be easier, as some lenders are quicker to reduce or write off debts than they are to hand over cash. The complaint process is explained, with template letters, here: How to get a payday loan refund. Use the same letters if you still have a loan outstanding, but here are some extra points … [Read more...]
Inheriting money when in a DMP, DRO, IVA or bankruptcy
What happens if you inherit money when you are in debt management or one of the three forms of insolvency: Debt Relief Order (DRO), bankruptcy or IVA? The answers are surprisingly different... Inheriting in a DMP This is the easiest case. Any money you inherit comes to you, not to your creditors or your DMP firm. It doesn't matter if the person dies before your DMP started or during your … [Read more...]
Debt news – July 2
The most depressing news last week was the closure of The Debt Counsellors Charitable Trust because of lack of funding. Since they started in late 2014, their six staff helped 5,217 clients with an average debt of £4,046 and average disposable income of only £9.55pm. Graph of the week The most deprived local authorities in England have seen biggest spending falls for neighbourhood … [Read more...]
“I’m bored, Mum” – cheap/free ideas for Summer 2017
Are you wondering how to keep your children happily occupied at the lowest possible cost all through the summer holiday? Here is a pile of ideas, including a lot of new ones for 2017, and they are mostly free or pretty cheap. Get out of the house as often as possible Picnics! In your own garden or down at the local park. Sit around in the sun and show them how to make daisy-chains. Take … [Read more...]
Persistent credit card debt – lenders must do more to help
The Financial Conduct Authority (FCA) is proposing a definition of persistent credit card debt and a set of actions credit card lenders will have to take with people who are in persistent credit card debt for 18 months or more. Recent news highlights why the FCA is worried about credit card debt. In June 2017, £67billion is owed on credit cards in Britain and that is increasing at 9% per year. … [Read more...]
Debt news – June 25
I was hoping some proposals for a Breathing Space would have been in the Queen's speech as they had cross-party support. But no... My pick of the articles this week is the three with personal debt stories. Graphic of the week Poorest children are 4 times more likely to have severe mental health conditions than the richest 5th: https://t.co/8901iMlEou #Queensspeech … [Read more...]
Piggy banking – go the whole hog and budget better!
Piggy banks are not just the cute pig-shaped money jars for kids. Piggy banking is also a system of dividing your money into different ‘pots’, or accounts. It is also known as "jam jar accounting" or "the envelope method". Each pot represents a different aspect of your life you need money for. So, for example, you might have one account for your most important bills such as the mortgage or … [Read more...]
IVA – why you may get a cheque for uncashed dividends
A reader asked: I have received a letter from my IVA firm with a cheque for over £2000, saying uncashed dividends had been returned by one of the creditors. They have said if I don't cash it in 90 days they will give it to a charity. Now I'm worried - What are these dividends and why would the IVA firm send them to me, surely it would be classed as a windfall? It says the creditor should … [Read more...]
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