Recent statistics released by Creditaction make interesting reading for Debt Counsellors, consumers and anyone interested in the debt management industry.

With UK personal debt now nearing £1.5 trillion there seems to be no let up in the amount of personal debt in thie UK, which increases by £1 million every 9 minutes.

With the average household paying approximately £3930 per year in interest to manage their debts, and the average houseprice having decreased by £95 every day since December 2007 its no surprise that an average 124 properties are repossesssed daily. 

Debt consolidation is also proving to be a less desirable soulution, as almost 2/3 of people who take out a consolidation loan end up borrowing more.  With 298 insolvencies every day in the third quarter of 2008, the CCCS received a whopping 41% increase in the number of calls relating to debt management to their offices in the last 4 months they are stretched to the limit, as are the Citizens advice bureaux.

If you are struggling with your repayments and are looking for a fast response on anything relating to debt management, speak to one of our debt counsellors, call MRA Debt Help on 01424 777156

A leaked document from the banking group RBS is reported to show that the company is "preparing systems and processes to proactively refund charges to the groups customer base" if it loses its test case over bank charges.  With many consumers who have had debt problems or are on Debt management plans having suffered large fees for going over their overdraft and having direct debits bounce, this can be viewed as a step forward for our clients.

Whilst a spokesperson from RBS has denied that they are admitting defeat, he said they agreed to "deal efficiently and swiftly with customer complaints on conclusion of the case"

Martin Lewis of Moneysavingexpert.com championed the fight to reclaim the bank charges and many people managed to claim back sums running into the thousands.  Some consumers with debt management plans found that their reclaimed charges were being used to pay lump sums off of their debts, whereas others received cheques or had their accounts credited with the amount.

With the banks having managed to prolong the legal process for so long hopefully this bit of news will signify a change in the long running battle.  If you are struggling to make your repayments and are being stung by bank charges then give MRA Debt Help a call on 01424 777156

The Financial Times have published excerpts called 'Twenty things I didn't know before I worked as a debt counsellor' by David Gaffney.  Debt Management clients and Debt Counsellors alike will appreciate the humour!

The excerpts are to promote his new book 'Never Never'.  A comic thriller about multiple debt problems and the like, it should prove to be a light hearted way for clients on debt management plans to look at their situation. 

With sensible suggestions and debt help mixed in with a bit of artistic licence and literary humour such as

"1 - You wouldn't put all your soup in a basket, so don't put all your debts in one

One easy payment, the ads say, as if a little light tidying were the solution to chaotic debt problems. Faced with insurmountable multiple debt, most people try to borrow their way out. This is like mending a leaking bucket by joining up all the little holes to make one big hole. Repeat this several times until you realise it doesn't work."

It looks like debt management clients will have some interesting food for thought!  The author's experience with debt management plans (Davin Gaffney worked as a debt counsellor for 12 years) should make a refreshing change from the doom and gloom and jargon normally associated with literature about debt management.  Needless to say, the book is on order (god bless amazon), and I'll bring a full review of it soon!

It seems that the 'big bad banks' have finally acknowledged the need to help out customers in need of debt management! 

Only yesterday, my blog - "Banks to share information on potential debt management customers" revealed that several credit card companies had joined forces to share more information.  Now, under pressure from the Business Secretary, Lord Mandelson, Credit card companies have agreed to introduce even more changes.

Lord Mandelson met with Consumer Affairs Minister Gareth Thomas to host a credit card summit this week, in which card providers agreed to "develop a statement of fair principles" in two weeks to help both regular customers and those in need of some form of debt management help.  Companies have been put under pressure to pass on the cuts in the Bank Of England base rate, and to review their current risk-based interest pricing.

Of more importance to those considering a debt management plan or similar form of debt help is the news that the card providers have collectively agreed to suspend debt collection tactics for 30 days if a debt management company is working with the customer on a draft debt management plan. 

Lets hope that the lenders continue on this current trend.  If you need advice or help on any debt management matter, call MRA Debt Help on 01424 777156

Five credit card companies in the UK have agreed to increase the amount of information that they share with each other from the beginning of December.

Barclaycard, Capital One, GE Money, HBOS and MBNA are trying to reduce the number of their customers that end up on debt management plans by sharing 'behavioural data' on their customers accounts.  The companies already share the customers balance, credit limit and whether the customers payments are up to date; but now intend to also share: "the amount of the customers' last payment, and whether this was equivalent to the minimum payment; changes to credit limits; the extent to which they withdraw cash on their account and if the customer is signed up to any promotional deals such as 0% introductory offers."

This could be a step forward for creditors to identify customers who are getting into debt problems at an early stage.  They can then take appropriate action, such as refusing to give more credit and recommending that ther client seek professional debt advice from a reputable debt management company.

The head of card payments at APACS, the payments association, Paul Rodford has said: "Our announcement today is not a silver bullet for tackling over-indebtedness, but is a significant step forward in the card industry's ongoing commitment to responsible lending."

If you are struggling to meet your repayments, and are unable to obtain any more credit, give MRA Debt Help a call on 01424 777156

A recent report in the Guardian, about the unfair and aggressive practices of some debt collection agencies, has stimulated much needed government debate, about how to protect individuals being chased for debts.  The severity of the situation has recently been brought to public attention, when a great-grandmother, who received a mistaken debt demand for £17,000 when in fact she only owed £500, took her own life.  It transpired that the mistake was caused by a computer error and that the £17,000 debt was in fact meant for a man who lived 200 miles away.  Tragic incidents like this highlight the need for debt collection agencies to act more responsibly and legal changes in the current system to be dealt with more swiftly.  While it is acceptable that businesses want debts repaid, the irresponsible manner in which some companies go about retrieving the money is not.  Individuals who might be victims of this sort of bad business practice might want to think about contacting a good debt management company.  They can offer good debt advice and the tougher the bully-boy tactics the harder they fight back.  

Ring MRA to talk to a debt councellor on  0800 612 9233

http://www.guardian.co.uk/money/2008/nov/18/debt-firms-crackdown-consumer-affairs
 

The financial pressures that people are now finding themselves under is reflected in the number of county court judgements recorded by Callcredit this quarter; an increase of £45.6m from £779m in just three months.  This recent report also suggests that people are unwilling to meet their financial responsibilities.  For anyone following recent financial events the reasons for this maybe obvious: rising costs of living and the banks reluctance to offer any further credit means people are struggling to meet their monthly outgoings and as a result CCJ’s are on the increase.  So what is a CCJ and what can people who are faced with CCJ’s do?    A county court judgement is a summons which states how much debt you owe and asks for you to reply with details of your current financial situation.  At this point debt advice and debt help is a positive option and making contact with a reputable debt management company who can help communicate with creditors threatening court action is a sensible choice.  While a first instinct maybe to try and weather out the storm, each missed repayment is only going to damage credit scoring further.  While debt management companies may not be able to improve credit scores in the short term they may at least be able to offer ways to prevent further damage and increase confidence about how to deal with the debt in the future.

MRA have people on hand who can offer debt help.
 

If you are an exclusive luxury goods firm with a wealthy customer base, which includes the likes of David Beckham, Sir Elton John and Kate Beckinsale, then you would be forgiven for thinking that you may just be lucky enough to come out of the credit crunch unscathed.   After all, could you ever imagine the Beckham’s of this world, cutting back on buying the latest Prada shirt, seeking out debt advice or implementing a debt management plan?  Not likely.
A recent report by Sue Hawkes and Marcus Leroux of the Times, suggest that all is not as grand as one might think in retail nirvana.  Theo Fennel, jeweller to the Beckham’s and other high profile stars have issued a profit warning for last month and a Bentley group in Exeter was reported to have recently fallen into receivership.  This is evidence that debt problems are taking hold of businesses at all levels.  Widespread redundancies across the European financial sector could be partly responsible for the loss of profits in the luxury goods sector and cuts in bonuses may also account for a reduction in sales of big items such as property, cars and swiss watches.  What is clear is that the impact of the financial crisis is being felt by all and debt solutions are being sought out no matter how rich or poor. 

For any debt counselling please call a MRA debt advisor
 

Concerns about the state of the UK's banking system have been further escalated by news that they are failing to supply enough credit to small business looking to refinance and in passing rate cuts onto mortgage payers.  If Britain’s small businesses are unable to continue trading as a result of the banks unwillingness to offer credit then cuts in investments and job losses will inevitably follow.   This news comes as a further blow for homeowners already struggling to make ends meet and others whose credit score is worsening on account of missing monthly mortgage repayments.  For many mortgage payers, rate cuts should mean an immediate and significant cut to their mortgage repayments thus easing the debt problem.  Instead, UK banks have failed to pass on rate cuts, leaving homeowners in a deeper financial mess.  If all this sounds wildly familiar, then seeking a debt solution by talking to a debt management company can help alleviate some of these financial concerns..

For independent debt advice please phone MRA on 0800 612 9233

A recent report by David Wighton, business editor for the Times, has indicated that even the most stable companies in the UK will find it difficult to raise new money from banks to pay off existing company debts.  The unwillingness of many banks to refinance company debt, while markets remain frozen, will make it difficult for businesses to trade as they have done previously.  Debt refinancing is hugely important as it is the way that company debt is turned into equity.  So what does this mean for UK businesses?  Well, these latest reports are not a sign that UK companies are currently having problems trading, but instead points to the fact that the banks, despite the government’s recapitalization scheme, will be reluctant to offer debt refinancing when the time comes.  The question then is just how long will many businesses be able to trade before needing to refinance and what are the consequences should they not be able to find any debt relief from banks.  The sad news is that companies who cannot refinance will begin to look at new ways of debt management that will ultimately involve some form of cut backs in investments and job losses. 

For debt help and debt advice please call MRA helpline and speak to one of the debt councellors