If you have had problems with debt, you may have had a default added to your credit record. The date of this default matters, so you need to know it exactly on all three credit reference agencies, see How to check your credit record for details. The rule is: the debt and the default will then be deleted from your credit record six years later after the first default. For example, if you have … [Read more...]
Getting out of debt
Practical articles about the different debt options, which might work for you and different ways of dealing with creditors
Buying too much online? 5 ways to cut back
A few taps on your mobile and that handbag, those kids' clothes or this kitchen gadget is on its way to you. This can be very convenient with busy lives and little time to go to the shops. But when money is tight or you want to save for something important, is it just too easy to overspend? If it's difficult to resist temptation and you want to cut back a bit - or a lot - to stop wasting … [Read more...]
SMI will be a loan from 2018 – even less help with a mortgage
Support for Mortgage Interest (SMI) is intended to help people with the cost of their mortgage if they aren't working. SMI has been given as a benefit so far, but from April 2018, it will only be given as a loan. SMI has been an important part of the UK benefits system since it was introduced in 1948. It only helps with the interest part of the mortgage repayments, not the capital. Who … [Read more...]
Fixed rate mortgage ending – should you remortgage?
Do you know what your four options are when a fixed rate ends? In July 2017 new research shows there are over a million people in Britain paying a loyalty penalty by not remortgaging. On average this costs £439 a year and one in ten people are paying more than a thousand pounds a year extra. Let's start by looking at the four possible options and how long you should try to fix for. Then I'll … [Read more...]
How equity release works in an IVA (with calculator)
Are you in the last year of an IVA and have a house with equity? You may have to try to remortgage your house to pay some of the equity into your IVA. This article looks at the questions people have about how equity release works in an IVA and what happens if you can't remortgage. It includes a calculator so you can see how much extra you may have to remortgage for. If you are thinking about an … [Read more...]
Prime Location Services – contacting you about a debt
Have you had a letter from Prime Location Services? A typical letter from them says: I am instructed to contact you as I believe you may be the person our client wishes to make contact with. Our trace team have made enquiries and have advised that your details have changed to the above address. So it doesn't mention why they are trying to contact someone with your name. Their website gives … [Read more...]
My DMP payment is too high
A reader asked if it is OK to reduce your debt management payments when you need to? This is a common problem for people in Debt Management Plans (DMPs) in 2017: inflation is at a four year high, fueled by the weakness of the pound after the Brexit vote, which increased the price of imports; Britain is in the grip of a pay squeeze, heading for the worst decade of income growth for over … [Read more...]
Lloyds overdrafts – new, simple charges are a cut for most borrowers
On July 17th Lloyds Bank announced major changes to the way it charges for overdrafts - a massive simplification. The new charging will be introduced in November for 20 million Lloyds, Halifax and Bank of Scotland accounts. Most customers will gain. This includes three million people in old style basic bank accounts - they are winners in the new system, a group that has been badly treated by … [Read more...]
Answers to the Quiz about types of debt
SPOILER ALERT Have a go at the quiz here before reading this page! A reminder: all the examples are for someone living in England, Wales or Northern Ireland. The same general diagram may apply in other countries, but the types of debts, the timescales and credit recording may be very different. A brief (no jargon!) explanation of my terms: Priority = a debt that is important, because … [Read more...]
Do you know your debts? A quiz!
Is that debt is a priority? Could you get a CCJ for it? Why isn't it on your credit record? If you have problems with your debts, it helps to understand why different debts sometimes have to be handled differently. Getting one wrong could be a big mistake! Here is a quiz, seeing if you can place some debt examples into the right place on the diagram below. Whether you think you are a debt … [Read more...]
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