Blog · Debt Camel

Debt news – February 9

My pick of last week's news are the persistent credit card debt articles. Tweet of the week Well the Film came out in 2016 4 years it’s taken and at last The DWP have changed the Shite music on the phones but not sod all else !! ⁦@KenLoachSixteen⁩ #DWP pic.twitter.com/0y672acTor — Dave Johns (@davejohnscomic) February 3, 2020 Debt news Dear CEO: our approach to customers who have … [Read more...]

“What’s the best way to clear credit card debt?”

A reader has a very common situation: I have £12,000 of debt on a couple of credit cards and a catalogue. Is a loan the best way to sort this out as soon as possible? It's not possible to answer that without a lot more details... but let's explore the options and see what makes some ways better for some people. Why do you want to do this? There are three main reasons: 1) You are fed up … [Read more...]

Debt news – February 2

It's been a busy week for news: Amigo puts itself up for sale, IVA early failure rates up again, FCA asks banks to explain their new overdraft charges. But my pick has to be the 4.3p in the £ which is all the 400,000 people owed compensation by Wonga are getting from the administrators. Debt news Very low Wonga payout: Wonga victims will only get 4.3p in the pound my article; … [Read more...]

Wonga victims will only get 4.3p in the pound

On 28th January 2020, the Wonga administrators announced that they will be paying all unsecured creditors 4.3% of their agreed Claim. They stated: This is a first and final dividend totaling £23,090,071.32, representing 4.3p in £ on agreed creditor claims of £535,636,017.75. No further dividends are expected to be paid to the Company’s creditors. Most of the unsecured creditors are the c. … [Read more...]

New “simpler” overdraft charges in 2020 are higher for 8 million people

In June 2019, the bank regulator, the FCA, announced its new rules about overdraft charges. It called these: the biggest shake-up to the overdraft market for a generation. Banks have to change their overdraft charging before April 2020. On 22nd January the last of the banks announced how they were changing their rates. And the FCA has now admitted that about 8 million people will be paying … [Read more...]

Debt news – January 26

Benefits and overdrafts are the main themes this week. Debt news Problem debt and the social security system StepChange: "the social security system would not meet basic regulatory requirements of consumer credit firms to treat customers fairly." Detailed statistics about how UC creates debt problems. Overdraft: Lloyds, Halifax and Bank of Scotland introduce up to 50% overdraft … [Read more...]

Debt news – January 19

My pick of last week's news is that gambling on credit cards is to be banned. Tweet of the week Waiting for a funding decision today... everyone thinks clients with #deficitbudgets are a priority don't they? — Anna Hall Ⓥ (@Anna__Hall) January 17, 2020 Debt news Love Island stars promote buy now, pay later firm Klarna accused of pushing customers into debt Sun: Alongside … [Read more...]

Debts keeping you awake? Find a good way forward

In the small hours of the morning, worries about bills and debts can go round and round in your head: complicated ideas about how to juggle all the payments when there isn't enough money; worries about your partner who doesn't know how bad it is and how to stop your children being affected by your money shortage; panics about what "they" (debt collectors, a judge in court, bailiffs etc) … [Read more...]

January – can’t pay all the bills & debts this month?

January is often the hardest month for millions of people. You got paid early in December so the money has to last longer, but then the credit card and catalogue bills arrive with that extra Xmas spending on them. So if you can't pay all your bills and debts this month, what are your options? Here is a practical list - starting with some things not to do, as they will make your life … [Read more...]

Debt news – January 12

My pick of last week's news for people interested in debt policy is the FCA's Journey into distress. And the Under the wage floor demonstrates how good regulations are not sufficient if the detection rate and the sanctions for breaking them are too small. Tweet of the week Yes! This ⬇️⬇️⬇️. We give employment rights to people to help offset the power imbalance between (low paid) worker … [Read more...]

Can you get a default deleted? When will it drop off if you do nothing?

"This default is destroying my credit score - how do I get rid of it?" This is a very common question! It's sometimes asked when people's finances have improved and they are trying to clean up old problems on their credit history as fast as possible. Or sometimes the default feels unfair in someway I will look at various cases to see what - if anything - can be done for each of … [Read more...]

Debt news – January 5

My pick of the week is I Worked at Capital One for Five Years. This Is How We Justified Piling Debt on Poor Customers - American but relevant to all high cost lending in Britain. And a shout out to Torsten Bell for "You think your meetings are boring? The Bank of England’s Monetary Policy Committee has met 107 times since 2010, and on only three occasions has it actually done anything to … [Read more...]

I have debts – can I get a mortgage?

You know a mortgage will cost the same or less than your rent which you have paid without problems for years - so it's obvious you can afford the mortgage. But that isn't what a mortgage lender looks at when they assess affordability! A few years ago, lenders only looked at the size of your deposit, your credit rating and your income. Now, in 2020, the "affordability calculations" look … [Read more...]

16 tips to turn New Years Resolutions about money into action!

Have you made some New Year Resolutions for 2020 - or even for the new decade? Millions of people in Britain want to improve their finances - start saving, clear debts, pay less interest, get a better credit rating etc. I think it's a good idea to ask yourself what you would like to change in 2020. If you carry on doing the same, then you probably aren't going to succeed with those … [Read more...]

Debt Advice – 2019 did not go well – what will happen in 2020?

Many annual reviews say the year has gone by so fast. But it seems like a very long while since I wrote my review of Debt Advice in 2018. 2019 has been very difficult for debt advice. There have been few bright spots (apart from affordability complaints), a lot of delays to policy decisions being taken and an ever-worsening benefits environment for our clients. 2019 - what happened & … [Read more...]