Blog · Debt Camel

Can I get another car after VT or is part exchange better?

A reader asked: I want to terminate my PCP car finance. The car's fine, good condition, but we now need a bigger car. According to my contract I can hand it back. But I am going to need to get another car, so I am worried this will harm my good credit record. Would part exchange be better? Your right to end a PCP contract early Personal Contract Purchase (PCP) is the most common way to buy … [Read more...]

How to stop a debt being sent to the bailiffs

Are you worried about bailiffs? If you have problem debts, seeing programs like Can't pay? We'll take it away can be alarming. As one reader said: If I stop my direct debit and don't pay them this month surely they will not be happy? I don’t want bailiffs around my house. If you have already had a letter from a bailiff read: Bailiffs - do you have to let them in? What you need to know. This … [Read more...]

I want to sell my house to end my IVA

A reader asked: We are desperate to end our IVA. So difficult. The IVA firm that seemed helpful at the start now after two years doesn't care about our extra costs. We have decided to sell and downsize. My wife is hoping for a discount but I said they were more likely to charge us more to get out early! We need as much equity as possible for the next house. This is a tricky situation. There … [Read more...]

What are your car finance options?

Cash is often the most cost-effective way to buy a car. But this isn’t always possible, especially if you have money problems. In 2018 more than 80% of new cars in Britain were bought on finance - but that doesn't mean it's going to be right for you! The four ways to finance your car a personal loan - a loan from your bank or building society to spread the cost over 1 to 7 years. Here … [Read more...]

PPI claims after your IVA has finished

In March 2017, the Court of Appeal decision in the Green v Wright case was published: Mr Wright's IVA firm was allowed to collect PPI after his IVA ended, even though he hadn't consented to this before his completion certificate was issued. As questions about this continue to arrive, I thought it would be useful to summarise the current situation: what is clear and what is less clear. The … [Read more...]

Won your Financial Ombudsman case but worried you won’t be paid?

Financial Ombudsman decisions are legally binding on the firm. But if it's been a couple of weeks and you haven't been paid, you may be feeling worried... This article gives some information on how you can enforce a decision from the Financial Ombudsman Service (FOS) through the courts. I'm doing this to re-assure you that it can be done, not to encourage you to rush out and do it! It is … [Read more...]

Can I spend backdated benefits money before going bankrupt?

A reader asked: I’ve just received a backdated Severe Disability Premium (ESA top up as on PIP too) and I am aiming to go bankrupt in May or June. I’ve been advised by a money advisor to use this money for essentials as I have just been given permanent accommodation having been homeless. No furniture came with the flat. I’ve been paying £1 a month to my creditors since last year. Should I … [Read more...]

Paying a defaulted account & your credit score

A reader asked if starting to pay a defaulted account will help his credit score. The simple answer is No! But there are very good reasons why paying defaulted debts will improve your general credit situation, making it easier for you to get a loan, a mortgage or a credit card in future. That credit rating number isn't the only thing that matters! To start, it's good to know what your credit … [Read more...]

The biggest IVA firms in 2014, 2015 & 2016 – league tables

Here are three League Tables for IVA firms, showing all firms that registered more than 500 IVAs in 2014, 2015 and 2016. This article is a complication of three previous articles. The comments on each year's figures were the comments I made at the time. The data came from the Insolvency Service, it was supplied to Louise Yates. As some of the notes to the League Tables and the comments below … [Read more...]

How F&F settlements affect credit ratings

A reader has asked how Full & Final settlements (F&Fs) would affect her credit rating which is currently looking good as her debts were all defaulted and have dropped off her credit record. A full and final settlement happens when a creditor agrees to accept an amount which is less than the total owed to settle a debt and agrees that the borrower will not be pursued for the remainder. … [Read more...]

Has British Gas added a new default for an old debt?

A couple of questions about British Gas defaults from Debt Camel readers in the last few weeks: I check my credit file monthly. I have just noticed an account that was never on there before from British Gas saying that I owe £179 from 2008. The only thing that is showing is a default issued Jan 2017. I have no recollection of this money. We didn't move from that address until 2010. What can I … [Read more...]

Which debts can you go to prison for not paying?

I don't think people should be sent to prison for not being able to pay a debt. It rarely happens, but it's important to know the sorts of debt where this is a possibility. About a hundred people a year are sent to prison for council tax arrears - here is a case where a mother was in prison for 40 days before being released. About 30 people a year go to prison for not having a TV licence - … [Read more...]

Joint debts – what happens in an IVA / DRO / bankruptcy

A reader asked: I have received a letter saying we still owe £4,000 in council tax. The debt was included in my bankruptcy a few months ago but they are chasing my wife for the full amount, what should we do? This article looks at what happens to joint debts which are unsecured, not mortgages or secured loans. It covers all three forms of insolvency - bankruptcy, DROs and IVAs - because the … [Read more...]

What is the difference between “settled” and “satisfied” on a credit report?

A reader asked: My Credit Karma report shows some settled debts but one is shown as satisfied. I am sure I paid them all off in full. Does it make a difference and should I ask for this to be changed? … [Read more...]

What to do if your mobile or landline bill looks wrong

Mobile phone companies have a bad reputation for complaint handling, from shockingly high bills, incorrect charges and billing errors to poor debt collection practices. For example, Vodafone was fined £4.6million in 2016 for "serious and sustained breaches of consumer protection rules." Hopefully this fine will make Vodafone and the other mobile companies improve their complaints … [Read more...]