Debt problems come in all shapes and sizes. So do personal relationships. And debt management plans (DMPs) are very flexible arrangements. The combination of all of these means there isn't a simple answer to the question about how your DMP will affect your partner, but here I look at the most common questions people have. Will my partner's income be taken into account? In debt management, you … [Read more...]
Is your pension safe in a DRO?
You may be worried about whether your pension will be safe if you are already in, or have finished, a Debt Relief order (DRO), or if you are thinking about applying for a DRO. The 2015 pension changes mean that many people over 55 can now withdraw some or all of their pension. so what happens if you take money out? Can you lose your pension? Can you get a DRO if you have a good pension? I … [Read more...]
Helping your son or daughter with debt or a house deposit
It's natural to want to help your children if they are in difficulty. But if your son or daughter has debts, can you afford to help them? And is paying their debts or giving them a loan the best thing to do, or are there better alternatives? I've written before about whether someone should help their parents with a debt problem - but helping your children has different implications, both … [Read more...]
Helping your mum or dad with their debts
Is paying your mum or dad's debts really a good idea? There was a lovely story a couple of years ago about Tyrone Mings paying off his mum's debt But he was a successful professional footballer so he could no doubt afford it. For the not so rich, there isn't a simple answer as every case is different, but I've put together some pointers for you to look at the options. I'll talk … [Read more...]
Will my pension be safe in a DMP?
The pension changes that came in in 2015 gave many people over 55 a new option for paying off their debts, by taking money from their pension pot. I've looked at whether this is generally a good idea in Should you use your pension to pay your debts? but in this article I focus on people who are already in a Debt Management Plan (DMP). This article is relevant for people who are over 55 (or … [Read more...]
Should you use your pension to pay off your debts?
More people than ever are retiring with significant amounts of debt. One in three people planning to retire now expects to have debts - an average of over £17,000. And annuity rates have been low for a long while, although they should be starting to rise as interest rates edge up in 2022. So with more debt to pay and their likely pension income getting less, it's not surprising that many people … [Read more...]
Is your pension safe in an IVA?
Many people who are over 55 can take some or all of their pension pot in cash before they actually retire. You need to know how this may affect you if you are considering an IVA. If you already have an IVA, you may be wondering if your pension is safe. First a warning: IVAs are individual arrangements and it is possible for almost anything to be included or excluded in the detailed terms and … [Read more...]
New Insolvency Service guidelines on pensions
On 26 March 2015, the Insolvency Service published Undrawn pension entitlements: Summary of guidance for insolvency practitioners and debt advisors. With "pensions freedom" coming into force on 6th April 2015, the Insolvency Service's aim was to clarify the murky situation around bankruptcy and pensions. Further clarification then came with the Guidance Issued to Receivers and Guidance Issued to … [Read more...]
Repossession after bankruptcy – be careful!
What do you need to do if you want your house to be repossessed after you go bankrupt in England, Wales or Northern Ireland? Perhaps the house is unaffordable, has negative equity, or it's the wrong size for you. For whatever reason, you want to move out, are happy for the mortgage lender to repossess and may want to "hand back the keys" as fast as possible to get it all over with. The … [Read more...]
Bad credit loans to avoid
Logbook loans, guarantor loans, "pay weekly" shops such as BrightHouse - these may sound attractive if you are short on cash but have a poor credit rating or have been refused a payday loan. But this sort of debt can end in disaster if you have money problems. This article looks at bad credit loans, how they create a lot more problems than they solve and what alternatives might work better for … [Read more...]
How IVA, DRO or bankruptcy affect affordability complaints
If you have been insolvent - bankrupt, had an IVA or a Debt Relief Order (DRO) - then you need to know how this affects a claim for a refund for a financial product. You can't make a new claim for a PPI refund - the deadline for this passed at the end of August 2019. But you can still make affordability complaints and other sorts of compensation eg for packaged bank accounts. New credit … [Read more...]
A friend owes me money – what can I do?
What should you do if a friend owes you money? Perhaps you took out a loan or bought something with your credit card for them because you had a better credit rating. Or perhaps you just lent them the money. And now they aren't repaying you. It would have been better to have thought all this through BEFORE lending the money... research has shown that nearly a third of people have fallen out … [Read more...]
Are you getting too many calls about debts?
Creditors and debt collectors can phone you about your debts and ask you to pay the money you owe. But too many calls are unreasonable and can cross the line into harassment, which is illegal. If you are being phoned too often by debt collectors, there are practical steps you can take to stop it. How many is "too many"? In this news story, a man kept a record of over 700 calls from MBNA … [Read more...]
Do a million need payday loan compensation?
On 2nd October 2014 the Financial Conduct Authority (FCA) announced that Wonga had agreed to compensate an estimated 375,000 customers where Wonga's "affordability" checks are likely to have been inadequate. The common reactions were first that Wonga was being made an example of to warn other payday lenders and second that this was a huge number of refunds... But should many more people get … [Read more...]
Wonga write-offs for 375,000 people in 2014
Wonga is offering write-offs to 375,000 of its current customers because its affordability assessments have been inadequate. This was agreed with its regulator, the Financial Conduct Authority (FCA) and announced on 2nd October 2014. Wonga has agreed to make significant changes to its business immediately to try to prevent these problems happening in future. Who is being compensated? The … [Read more...]