Blog · Debt Camel

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...]

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...]

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...]

Overtime, bonuses & pay rises – what happens in an IVA

A reader asked about a friend who is looking at an Individual Voluntary Arrangement (IVA): Mr X is 23 and owes just over 10k on various credit cards and loans. He earns £20k and hopes to get a £10k bonus this year. The IVA firm says the bonus doesn’t matter as it's not guaranteed. But won't the IVA take half of it? Would it be better if he got a job with a larger basic salary and no bonus, or … [Read more...]

Shall I stop paying into a pension?

If you are paying high interest on credit cards or other debts should you use every penny possible to reduce your debts? Or should you stop if your finances have been squeezed by cost of living increases? There are many good reasons why you should continue to make pension contributions. More than 10 million people save into their pension through auto-enrollment, where employers have to … [Read more...]

Will the new Enforcement Conduct Authority bring bailiff reform?

In 2020, the Centre for Social Justice (CSJ) brought together the debt advice sector and the bailiff industry to form the Enforcement Oversight Working Group. This group has co-authored a report called Taking Control for Good - introducing the Enforcement Conduct Authority, published on 25 July by the CSJ. In place of the current system of bailiff self-regulation, the report recommends the … [Read more...]

Provident Scheme – the voting and approval process

UPDATE - the Scheme has now been approved by the court. See Provident Scheme – 4 million people can now claim a refund for how to make a claim and what will happen in the Scheme. Provident Financial Group (PFG proposed a Scheme of Arrangement to reduce the refunds it has to pay to customers given unaffordable loans through its Provident Personal Credit (PPC) subsidiary. There are … [Read more...]

Save a house deposit or pay off debt?

A reader asked: "A friend said not to pay my defaulted debts off but save money towards a deposit for a mortgage - is this a good idea?" It's often unwise to rely on friends for debt advice... They may be guessing, their situation may have been quite different from yours, or they may be assuming what happened to them years ago is still useful today. And in this case, the friend may know … [Read more...]

Santander gives NOSIA refunds on some credit cards

UPDATE in August 2021 Barclaycard is sending out some letters saying "they have noticed a mistake was made with one or more statutory notices(s) in the past". That's very vague! But those too may well be the "NOSIA refunds" described in this article. In June 2021, Santander sent some credit card customers a letter saying they would be paid a refund because Santander had failed to send them … [Read more...]

Thousands should switch from DMPs to a DRO after rule changes

UPDATE The rules about who can have a Debt Relief Order (DRO) changed in 2021 and more changes are coming in June 2024. From that date you can qualify for a DRO with debts of up to £50,000 and the permitted value of a car you can own is being doubled to £4,000. Thousands of people who are renting will now be eligible to apply for a DRO because of the 2021 and 2024 changes. Many people who … [Read more...]

Should I end my IVA and change to a DRO?

In 2024 the Debt Relief Order (DRO) rules have been relaxed so a lot more people qualify. For example, the maximum limit of debts in a DRO has now been increased to £50,000 and you can also own a car worth up to £4,000. Will you now qualify for a DRO? If you are in an IVA, you are renting and your IVA payments are less than about £120 a month, you may be much better off switching from an IVA … [Read more...]