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

Car finance commission – can you get a refund?

There are now two different types of car finance commission complaints, "discretionary commission" and "undisclosed commission". In January 2024, the FCA allowed car finance firms to "pause" their handling of discretionary commission complaints. Then in October, a major appeal court case covered a completely different reason for asking for a refund of car commission - it was not fully explained … [Read more...]

What to do if a creditor won’t freeze interest

What can you do if a creditor is still adding interest when they have been asked to stop? This can happen if you have a payment arrangement. It also sometimes happens, but much more rarely, in a Debt Management Plan (DMP). Most creditors do freeze interest if you have supplied a reasonable Income & Expenditure Statement. If you are in a DMP, your DMP firm will have sent the creditor … [Read more...]

DMP FAQs – if you are worried about a DMP, read this

A reader said she was scared about starting a Debt Management Plan (DMP). She was worried her creditors might not freeze interest or could take her to court. Another reader asked if he can get a new mortgage fix if he is in a DMP I thought it would be useful to look at the most common questions I get asked about DMPs. Setting up a DMP Will I get lots of phone calls from creditors? You … [Read more...]

Can’t pay your bills & debts? What help can you get?

What help can you get if you can't pay your important bills and debts? If you don't think you can manage to pay everything, this article looks at your options for priority and nonpriority debts. And how to get help, with debts and with benefits. Get a budget & know what is top priority When there isn’t enough money to pay for everything, you have to make choices. It’s important to … [Read more...]

Debts – why, how & when to ask for the CCA agreement

The Consumer Credit Act (CCA) gives you the right to be sent a copy of your credit agreement and a statement of your account for most loans, credit cards, catalogues, store cards and Hire Purchase agreements. CCA agreements are important! If a creditor can't find it then: you can't get a CCJ for the debt; and you may decide to stop paying the debt. Sometimes asking for a CCA … [Read more...]

“Will a credit builder card improve my score?”

Four million people in Britain have a credit card specifically aimed at people with a bad credit rating. These cards have interest rates of 30-70%. A standard interest rate on a normal credit card is about 20-28%. Brands include Vanquis, Capital One, Aqua, Ocean, Marbles, Zable and 118. Some normal credit card lenders like Barclaycard have a specific bad credit product available. They are all … [Read more...]

7 ways to speed up a DMP so it finishes sooner

A reader asked: I'm being told a DMP would take more than 10 years. Is that too long - I hope my situation will improve? Ten years is a long time. But lots of things can happen during a Debt Management Plan (DMP) which will change the time it may take. Here are seven ways the DMP could be speeded up - not all of them may apply to you. 1. No DMP fees If the DMP firm you are talking to charges … [Read more...]

When to send a Prove It letter about a debt

If you get a letter saying you owe money on a debt you don’t recognise, or which you thought you had paid off, you need to challenge the creditor to prove that you do owe the money. Sometimes debt collectors have simply got the wrong person. This is sometimes called a mis-trace. This is what the Financial Ombudsman says about mis-traces: We would ask a debt collector to provide evidence to … [Read more...]

HSBC pays compensation for not saying a debt was unenforceable

In 2023, Miss M asked HSBC to produce the Consumer Credit Act(CCA) agreements for her debts. If a creditor cannot produce the CCA agreement for a relevant debt, the debt is unenforceable in court and the consumer can stop paying it. The older a debt is, the less likely it is that the CCA agreement can be found. Miss M's debts were very old. Asking for the CCA agreement is a simple procedure … [Read more...]

Should you switch from a DMP to a DRO?

You may have started a DMP hoping things would improve, but if your wages haven't kept up with the cost of living, or your expenses have gone up with a baby, you may be fining it hard to keep up with the DMP payments. And you may find you now have debts outside the DMP or arrears on bills accumulating . In this situation if yoy are renting, look at the option of a Debt Relief Order … [Read more...]