Blog · Debt Camel

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 the creditors agrees to accept an amount which is less that the total owed to settle a debt, and agrees that the debtor 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...]

2016 insolvency numbers up – but rising debt isn’t the main cause

On 27 January the Insolvency Service published the data on insolvency in 2016. The number of people who became insolvent in England and Wales last year was 90,930. As the graph above shows, this has reversed the trend of personal insolvency numbers falling every year: the total for 2016 is over 13% higher than in 2015, the first time there has been a rise since 2009. Bank of England statistics … [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...]

Should I get a loan to repay old defaults?

Mr N has asked: On checking my credit score I have two defaults on my account both with the same creditor. First default was on 11/14 and the second 08/16 for a total of £1,750. I am now able to get back on track and get a loan to pay this in full. If I write to the debt collector and say I can pay this off and they give me their guarantee to put fully settled on my credit record, is this the … [Read more...]

How to make New Year resolutions you will keep

Happy New Year, everyone! Are you excited to have a blank piece of paper in front of you for your 2018 resolutions? Or is it a bit depressing as your list is much the same as last year... And last year half of them didn't make it to mid-January and you didn't stick to any of them for three months... This year, go for SMART resolutions. SMART is a term from professional project … [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...]

Debt Clever – trying to profit from closing down?

The FCA says that over a hundred debt management firms who applied for authorisation have been refused or have withdrawn their application. In September 2016, Debt Clever became one of these firms. Some firms that are closing are looking for ways to continue to make money from their clients. My previous article, Why the FCA should ban the Compass debt advice model, has some examples. This … [Read more...]

What to do if you can’t pay a water bill

If you have just received a water bill you can't afford, what can you do? If you ignore it, can they cut off your water? This article looks at the questions people often ask about paying water bills in England and Wales. But first, have you looked at how you reduce your next bill? This may not seem like a priority at the moment, but if you can pay less next year you can afford to repay your … [Read more...]

How to cut your water bills

Water bills keep on increasing. You can't change Water Companies but there are still a lot of ways you can cut your water charges. This article is looking at ways to cut your future bills. If you already have a bill that is too high for you to manage, don't ignore it, read What to do if you can't afford to pay a water bill. See if you would pay less with a meter 60% of people don't have a … [Read more...]