These debt management adverts make me sick

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garystu1965

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"New government legislation means we can write off 75% of your debt".

So does this mean that people who live on the "never never" and have no way of paying off what they owe can get off scott free ?

I like to think I've done quite well with saving up, getting a bit of equity in my house, company shares, no credit card debts etc.

Yet really what I should have done is get a load of credit cards, buy things I can't afford and then go to a debt managment company to pay off 3p in the pound or whatever it is.

..and I bet I am paying for their debt in some indirect sort of way.

Somebody tell me these bad debtors are penalised in some other ways.
 
I know what you mean, especially when they add that they can even throw a bit of extra on top of what they owe as some form of ''spends''!!!!.

As far as I know though, it stuffs their credit scoring and they'll never get a mortgage/credit card/store card/credit/bank loan for a long long time.

Portzy.
 
For several days a couple of weeks ago I got phones calls from a debt management company - it played a recorded message saying it was a Government Announcement, then asked me to press a button to speak to a live operator.

I did, and funnily enough they havn't called back since!
 
Just like the adverts where someone gets a huge loan, so that they can go on holiday! :rolleyes: :) :mad: :mad:

John
 
So I suppose it's ok to buy the latest new Mercedes on HP, what they cost, thirty grand, than to borrow two grand to go on holiday? And I here you say, 'But at least we have the car'. Tell me, how much do you loose as soon as you drive it out of the showroom?

Oh sorry, I forgot everyone has paid cash for their car. Well, at least I know I have....... ;)

And I BL**DY DETEST those ads aswell by the way! Mainly because they are hypocritical........ ;)
 
Vultures

I don't think they all get off scot free. :crazy: First thing you notice is the throwaway question asked and answered in the imaginary phone conversation "yes we own our house" that means any loan you get involves signing over your house as security. "Whats the new monthly payment ----oh thats much better than we are paying now!" yes its lower for next GAZILLION YEARS!!! I hate these adverts because they actually involve getting people further into debt while masquerading as " helping people out" Talk about vultures circling the kill.:mad:
 
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yes but lets be honest, if you are in a situation where you have mountains of debt that you simply cant afford to pay then spreading ot over a longer term may help those people in the short term..

of course they should never get into the mess in the first place, but everyone makes mistakes...

i personally dont have ANYTHING on hp and hopefully never will... (apart from the mortgage i have on my flat)
 
We are not talking about companies that will consolidate your debts, we are talking about companies that will negociate with the lenders to reduce the debts to about 25% of their original value.

The money has to come from somewhere so yes; those who pay off their debts on time are paying for others to not do.
 
oh sorry.. yes i agree in that case... scum of the earth...
 
Yes, galling that others aren't paying their way. But by going down this route, their choices and options are limited in the future. Doubtless there are people bleeding the system, but those up to their eyeballs in debt will be stressing out. People have taken their own lives over it
 
hang on hang on eveyone ....... many many people find themselves in this problem through no fault of there own .... we have had at least 2000 jobs go at My Travel and the Co-Op on line bank .... thousands of small businesses are struggling as well...anyone can find themselves in this kind of trouble .... what about the floods can business support there staff through this troubled time ... the effect on tourism ...local shops being put out of trade because of supermarkets ..... easy credit ....many people don't understand APR or % rates .... good job the Girls guides are having a badge for money management ...and if they did this in schools as well it may help in the future
 
hang on hang on eveyone ....... many many people find themselves in this problem through no fault of there own .... we have had at least 2000 jobs go at My Travel and the Co-Op on line bank .... thousands of small businesses are struggling as well...anyone can find themselves in this kind of trouble .... what about the floods can business support there staff through this troubled time ... the effect on tourism ...local shops being put out of trade because of supermarkets ..... easy credit ....many people don't understand APR or % rates .... good job the Girls guides are having a badge for money management ...and if they did this in schools as well it may help in the future

Maybe i was taught different morals , if you owe it .. you pay it!

Try negociating a 75% discount with Revenue and customs and see where you get.
 
i know what you mean ...the brother in law found that out ...... no one could pay who owed him money ..... the vat man intervined.... end of............but if you have't got it where do you get it from .....????? and the milk of human kindness is still flowing in scotland i see
 
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The 75% is written off, the principle is '' Something is better then nothing ''. Banks and credit card companies make huge profits through interest, repayment and arrangement fees, overdrawn fees, bounced check fee, etc, etc. In comparison to their profit margin it only constitutes a small percentage. Trust me I know, I was a Barclays ex-employee and now a Co-op bank FA, rumours are that there a going to be alot of job cuts in near future. Now that would really put me in a sticky situation!
 
For several days a couple of weeks ago I got phones calls from a debt management company - it played a recorded message saying it was a Government Announcement, then asked me to press a button to speak to a live operator.

I did, and funnily enough they havn't called back since!

Please do not press any more buttons again. it is an old scam and as soon as you press anything, you will get directed and re-routed through a premium phone number at £3:00 or more a minute.
spanish scam i think like the lottery primateva crap.
 
Check out number 1 on the bankruptcy map of Britain! :eek:
http://news.bbc.co.uk/1/hi/in_depth/629/629/6365321.stm
Frightening, especially as there is so little employment down here. My uneducated guess would be that the great majority will be very small businesses trying to make a start on the bottom rung? Bankruptcy through unforeseen circumstances is one issue, but to borrow money to buy a newish car or holidays etc when the repayments are punitive is quite another issue. I am extremely old fashioned in my family values and am totally against what I will term unnecessary borrowing.

John
 
IVA's, wonderful things. In order to set one of these up, you have to pay an insolvency practioner, who then calls a meeting of your creditors and puts forward the proposal of 25p in the pound repayment. The debt these people have normally accrued is in the form of credit cards, store cards etc etc ALL unsecured debt. So normally they will gladly take 25% as opposed to nothing. While this is running, normally 3 or 5 years no credit allowed and you must inform your bank. So they take back their overdraft facility as well.

The alternative, equally as wonderful, is a consolodation loan, but only if you own your own home. The innocent question on the advert is "do you have a mortgage" to which the reply is "yes.........." So the lender knows the loan is secured against your house, providing you have the equity in it. Debt concolidation is good if managed properly, all it effectively does is eases cash flow. Most business are run on overdraft facility or by a factoring company who are basically lending you money to ease your cash flow.

Well thats my basic knowledge gained over years of IVA's and debt consolidation:D :D :D
 
The 75% is written off, the principle is '' Something is better then nothing ''. Banks and credit card companies make huge profits through interest, repayment and arrangement fees, overdrawn fees, bounced check fee, etc, etc. In comparison to their profit margin it only constitutes a small percentage. Trust me I know, I was a Barclays ex-employee and now a Co-op bank FA, rumours are that there a going to be alot of job cuts in near future. Now that would really put me in a sticky situation!


That is where they get all the money to cover up those who cannot pay their debts.
By charging exorbitant fees to those who can pay.
Those on the dole who have more kids to get more dole money. what is the difference if you have not paid a penny into a system, e.g 16yrd old mums
 
An IVA should be a last resort not a first.
Anyone in that kind of trouble, and I can understand how it happens, should be contacting the Citizens Advice or National Debtline. They can make arrangements that actually work to clear debts without getting into deeper trouble.

I genuinely feel sorry for those in trouble who get sucked in by an insolvency advertiser who quite frankly doesn't give a damn about an individuals situation and will only recommend the route that gains them the most commission.

What the ads should state is

" If you're in trouble, we can make money from it "

All the loan consolidation people dont help either with the glib *We'll lend you so much money you'll never be in debt again* advertising.

Borrowing for some things is fine (mortgage etc) but borrowing just to have spending money is crazy as you never know what's around the corner and anything from a broken leg to the current floods can quite literally destroy your life.
 

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