Blog · Debt Camel

What happens to your possessions in bankruptcy?

The bankruptcy application says "It is very unlikely that items you need for your daily life (eg washing machine, sofa, refrigerator) will be sold". Here are a selection of questions here that people have asked about what may happen to the things they own if in bankrupty. I may not have mentioned your exact situation, but the answers here try explain how the Official Receiver makes … [Read more...]

Is your name in a fraud database?

There are three large UK databases aimed at alerting lenders to possible fraudulent applications for borrowing: National Hunter, Cifas and Sira. If your name is on one of these connected with fraud you may find it difficult or impossible to take out credit and your bank account may be closed. But sometimes the information on the databases may be wrong and you need to get it corrected. In … [Read more...]

When to send a Prove It letter about a debt

If you get a letter saying you owe money on a debt you don’t recognise, or which you thought you had paid off, you need to challenge the creditor to prove that you do owe the money. Sometimes debt collectors have simply got the wrong person. This is sometimes called a mis-trace. This is what the Financial Ombudsman says about mis-traces: We would ask a debt collector to provide evidence to … [Read more...]

“Will Experian Boost help my credit score?”

A reader asked if she should sign up to Experian's Boost. Are any disadvantages? Would it really help her credit score? Experian's new Boost facility was introduced in the UK in November 2020: it can increase your Experian Credit Score by a maximum of 101 points; it is set up so it can never harm your credit score. Hundreds of thousands of people have used it. Let's see how it … [Read more...]

Apps that help you budget or save money

Here is my pick of apps and other #FinTech (Financial Technology) products that help you budget and save if you live in the UK. My interest here is people who are short of money. It doesn't include apps getting you to invest in the stock market. But these budgeting apps will also help anyone who doesn't have debt problems but wants to save more, for a house deposit, a big holiday or to … [Read more...]

There still some good 0% transfer deals but you may get a smaller limit

In February 2023, the longest 0% balance transfer deals are 30 months long, but there aren't many of them. 2017 was the high water point for 0% balance transfers - you could get deals for 43 months. Then the deals got gradually shorter and the fees edged up. With the pandemic, most deals disappeared entirely and the few there were much shorter, a maximum of 24 months. From late 2021 the … [Read more...]

Should you get a joint account for the bills?

Should we use a joint account for everything? Or get a joint account only for the bills? How will a joint account affect our credit scores? Is it best to both use the same bank? I've seen a few questions about how couples share finances recently, so I've brought them together into one article. Should we use a joint account for everything? Don't rush into this! Not only are you linking your … [Read more...]

Bankruptcy – should you get a new job? Or work overtime?

A couple of readers have asked recently about whether it's sensible to turn down a job or overtime when you are bankrupt. Two things matter in this sort of situation. First, have you been discharged from bankruptcy? Almost everyone is discharged from bankruptcy after a year. And secondly, do you have an Income Payments Agreement (IPA) set? In an IPA, you have to make monthly payments for … [Read more...]

How much must you earn to replace the £20 UC cut?

The government wants people to work more to replace the £20 Universal Credit (UC) cut coming up in October. If you would like a simple guide to UC, written by people who are "experts by experience", check out Universal Credit: A guide by claimants, for claimants. Many people would love to earn more but can't get the hours. Others can't work for health reasons or caring … [Read more...]

4 reasons why you need a new bank account

Everyone needs a bank account that they can rely on, one that doesn't cause more trouble than it solves. So here are four reasons why people with financial problems should get a new bank account. If you have a lot of problem debt, you may think you can't change bank accounts because no-one else would let you have a current account. But the new Basic Bank Accounts that were introduced in 2016 … [Read more...]

Amigo’s Scheme rejected – now looking at a new Scheme

UPDATE In May 2022, the new Amigo Scheme was approved by the court and went live. See Amigo’s Scheme for details about this. This page on the old Scheme is now no longer relevant. Please leave any comments and questions on that new page. The approval process for the first Scheme (this ended in rejection) On 30 March, the First Court Hearing gave the go-ahead for Amigo to organise the … [Read more...]

“I’m using my credit card. But my report says I’m not!”

Mr M asked: I am trying to build my credit score but feel I am getting nowhere. I had 2 accounts in default which I paid about 1 year ago. My bills are paid on time. I have a Capital One credit card with a £200 limit. I always get £50 worth of petrol on the last Friday of every month and pay it manually a few days later. But I got an email from Credit Karma saying "When your last report came … [Read more...]

Want to consolidate your debts? 5 errors to avoid

Lots of people want to consolidate all their debts into one loan. Making just one monthly payment sounds simpler. And the interest could be lower - a big improvement, surely? Consolidating can sometimes be a good idea, but you have to be careful to get it right. Most debt advisors have seen this go badly wrong for too many clients... So if you want to get this right, here are the five big … [Read more...]

Off to uni ? Time to plan your finances!

What should your top priorities be for managing your money? And what should you avoid? Living on a student loan is hard You will probably get more money in your bank account than you have ever had before. But most students find it harder to manage than they expected. It’s not a lot when you look at the bills for halls and the cost of living. And the system expects many students … [Read more...]

The 2021 IVA protocol – what has changed & will it stop mis-selling?

The IVA Protocol 2021 was published in April 2021. This replaces the old 2016 Protocol which should not be used for new IVAs after 1 August 2021. The terms of IVAs already in progress are not affected by the new version. The new Protocol aims to be easier to understand for people in debt - for example "debtor" has been replaced by "consumer" and it has been put into the typical "gov.uk … [Read more...]