Debt Archives

Getting out of debt

Practical articles about the different debt options, which might work for you and different ways of dealing with creditors

What to do if you get a Claim Form

If you receive a Claim Form from a County Court through the post you need to respond rapidly. Ignoring court papers is a bad idea, even if you think the debt is too old or you are worried you can't pay the money. If you agree you owe the money you will get a County Court Judgment (CCJ) but if you complete the Claim Form papers properly you will be able to make monthly payments and won't … [Read more...]

“Can mortgage lenders see old debts, no longer on my credit record?”

A reader asked: I know a debt drops off my credit file 6 years after it was settled or defaulted. I just want to ask when I apply for a mortgage, can the lender dig up unpaid debts if they are no longer showing on my credit report? This is a common question. The answer is Yes, sometimes because a lender can see other information that may show the debts. Let's look at what the lender can see, … [Read more...]

Is your pension safe if you go bankrupt?

If you expect to go bankrupt soon you may be worried about whether your pension will be safe. The Insolvency Service published a summary of its new guidance on pensions and bankruptcy in England and Wales in 2015 after the "Pension Freedom" changes that year made it possible for many people to take money out of their pension from age 55, even if they are still working. There was some legal … [Read more...]

“£20,000 credit card debt due to gambling – what should I do?”

A reader asked: "I have nearly £20,000 in credit card debts due to 8 years of gambling addiction. I asked several times to lower my interest, defaulted a couple of times and also they could see gambling on my account yet they still increased my credit limits. I was taking cash advances to pay for food. I have not gambled for 18 months now, but I am left with this horrible debt that I cannot … [Read more...]

How to complain when you are the guarantor for a loan

UPDATE: Do not use the template on this page for Amigo, Buddy, George Banco, Trust Two, Glo. It is now too late to complain about them. For TFS see TFS Loans goes into administration. If you are a guarantor for a loan you can ask to be removed as the guarantor: if you couldn't afford to repay the loan without difficulty; or you were pressured into becoming the guarantor; or … [Read more...]

“Lender says I lied – what should I do?”

Some lenders responding to affordability complaints by saying your application wasn't accurate about your income or expenses when you took out the loans. They are doing this to try to put you off taking your case to the Financial Ombudsman. That may save them a lot of money! Let's see why applications may have been inaccurate and whether this is a problem for your complaint. Most of the … [Read more...]

Letters from Reunite or Prime Location Services – be careful

This article covers letters from Reunite (website: reunitemenow.com) and Prime Location Services (website: primelocationservices.co.uk). Both firms send "tracing letters", trying to find someone, without saying anything about why they are trying to contact you. Both have links with Global Debt Recovery, who are a debt collector. Reunite A typical letter from Reunite says: We require your … [Read more...]

“What if I forgot to put a debt on my bankruptcy application?”

A reader asked: I am thinking of filing for bankruptcy. Some of my debts go back quite few years. I tried a DMP and couldn't keep up with the payments. I’m behind on my household Bills too. I’m single mum and find hard to cope with all this stress. I finally plucked the courage to do the form. I have at least 13 creditors, some have passed the debts onto others and some of the names of … [Read more...]

“What happens to a DRO if I move in with a new partner?”

A reader asked: I’m a single parent and have had about 10k of debts in a debt management plan for several years. I’m on low income and it looks like it will never end plus I have got some further debts. Now I’m considering a Debt Relief Order (DRO). But I met someone and I’m thinking about starting to live together. I don’t want to tell him about my debts and really want to sort this out … [Read more...]

Are you worried about a charging order?

Can your house really be at risk if you get into difficulties repaying something like a credit card bill? You might think the answer is "no", but there are some very rare situations where this can happen. It helps to know the facts, so you can make good decisions about how to deal with your debts. To be able to sell your house a creditor has to: start by getting a County Court Judgment … [Read more...]