Judging by our google analytics, there are a lot of people out there trying to find information about the consumer credit act 1974, and their rights when being harassed by creditors.  At MRA Debt Help, we have produced an article on our website highlighting the main areas in the "Debt Collection Guidance" document produced by the OFT.  This is not an exhaustive list, for more information you can call one of our debt counsellors on 01424 777156.

The guidance is there to stop creditors harassing those in debt by telephone, post and in person.  For example, when contacting you by telephone your creditors should:

Contact you at reasonable times, and at reasonable intervals.  This includes legitimate requests from shift workers asking not to be called at certain times of the day.

Not ask you to call back on premium rate telephone numbers. 

Make it clear who they are, where they are calling from and why they are calling. 

Creditors must make sure that all contact is clear and understandable.  They must not use logos that imply they have government or public body backing, or suggesting that they are working on behalf of the courts.  They must not use jargon or legal phrases, or present information in a way that exploits any lack of knowledge on your part. 

Creditors must answer your requests for information i.e balance statements etc, and must investigate any claims disputing the debts.

Creditors must tell you if they pass on your debt to a 3rd party, and should not use more than one debt collection business at a time, so as not to result in frequent calls from different companies.

Creditors should not pressure you into making unreasonably large installments, or into making regular payments that you cannot afford.  They should not pressure you into selling your property or to borrow more money to raise funds, nor should they threaten to tell any 3rd parties about your debts, or do anything to publicly embarass you.

If you appoint a 3rd party to deal with your debts, i.e the Citizens Advice Bureaux, or MRA Debt Help, they cannot refuse to deal with them.  They should then contact your representatives instead of contacting you, and should not operate a policy of refusing to deal with debt management companies.

Hopefully this has given a little insight into some of the things you should expect from your creditors, the entire guidance is on our website. 

Over the last few months, a large amount of jargon has surfaced relating to the current financial climate.  Some of the terms in this blog have been around for a while, but I like them, and they're nearly on topic!!!

Stagnation - This was one of the earlier terms to come out of the recession, meaning a period of stagnant growth and rising inflation, but cant help but think it has something to do with a damp smelling house.

Funts - No, its not rude, read it again.  The Financially Untouchable.  So good, they made a website about it.  It describes those of us that seem to be completely unable to obtain a financial product.  It may ring a bell for many of our debt management clients, and we hope to be able to help as many funts as possible!

Ninja Loans! - When I first heard this, I though "I want one!!!"  I want my loan to be a stealth loan, dressed in black, silently eliminating all my other debts with its huge Katana Sword.  But unfortunately, it doesnt mean you get a free highly trained bodyguard to protect you from creditor harassment.  (but how cool would that be?).  It actually stands for No Income, No Job or Assets.  It is a type of sub-prime borrowing, that has lead to quite a few problems in the US, especially for finance company HCL, who first coined the phrase.

Jingle Mail - New Christmas song, or sign of the times?  Well, you're not going to hear Cliff Richard belting it out any time soon. It refers to posting your keys back to your mortgage company when you can no longer afford the repayments. 

IPOD - Yes, I know its the biggest selling MP3 player, but it also stands for Insecure, Pressured, Overtaxed and Debtridden.  The last year has caused a huge amount of people to fall into this category.

If you feel like a bit of an IPOD or a Funt, or you are considering sending out some jingle mail, then call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors.

No, I've not found a way for everybody to write off their debts - even though some unscrupulous 'debt elimination' companies would have you believe its possible!

Unbiased.co.uk, the professional advice website has labelled today, Debt Freedom Day.  The frightening thought behind this, is that as a nation, we have worked the first 83 days of 2009 just to pay off the interest on our debts. 

This means that so far this year the nation has not started repaying any of the actual debt, and that the UK's debt mountain would take up nearly all of our salaries for the 1st quarter this year.  Thats 22% of our annual salaries being spent just on interst on our debts. 

OK, so its not easy to visualise yourself spending all of your January, February and March wages on the interest on your debts - some of us need to eat too!  But it does highlight just how much we are spending each month, and hopefully spur us onto finding some form of debt help, and work towards clearing our debts. 

If you are struggling with your debts, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors

The FSA has released figures this week that provide no comfort for millions of homeowners worried about the recession.  It has assumed a 30% fall in property prices from their peak, and calculated that this will leave 2 million homeowners in negative equity. 

We've commented on this before, but up till now the FSA has been quiet on the subject.  It is its Financial Risk Outlook Report for 2009 that contains the information. 

It adds to its report that the problem has a wider effect on the economy, with households in negative equity tightening the reigns on their spending, much like our debt management clients, resulting in lower economic activity.  In addition it also comments that a further 500,000 buy to let investors will be in negative equity.

If you are struggling with your mortgage and are worried about your situation, call MRA Debt Helkp on 01424 777156, to speak to one of our debt counsellors

It was recently reported that Bailiffs were to be given more powers of entry as part of the Tribunals, Courts and Enforcements Act.  But speaking on BBC Radio 4's Moneybox this weekend, Justice Minister Bridget Prentice has dismissed this.

Bailiffs can currently only force entry where they have been previously allowed entry to the house by the debtor. These powers were to be increased under the proposals. 

Speaking on the BBC, Minister Prentice said the decision was based partly on current economic circumstances.  She said "Secretary of State Jack Straw asked me last year to have a complete reassessment of the provisions of the act given the current economic climate.  We don't think they are appropriate at the moment."

Another of the ministers worries was the level of regulation (or lack of it) in the industry.  "The idea of someone entering your house to seize your goods is a very serious one and so it really is important that we get everything set up with a proper regulatory authority."

The industry is due to be regulated in 2012.  Organisations such as Citizens Advice have welcomed the postponement of increased powers.  Even the High Court Enforcement Officers Association has welcomed the decision.  "It's sad that the government couldn't implement what it wanted to do but it's a wise decision at the moment." said Claire Sambrook.  She added "You can only really give rights of entry into private homes when you have a properly regulated profession."

If you are having problems with bailiffs or any form of harassment regarding your debts, then call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors.

If you have questions regarding any areas of debt then there are many ways to contact MRA Debt Help. 

If you prefer the traditional approaches, you can call us on 01424 777156, or write to us at 3 Old Ladies Court, High Street, Battle, East Sussex, TN33 0EN.  If you are lucky enough to live near our offices in Sussex, you can book an appointment to see one of our debt counsellors in person. 

Some of us on the other hand prefer a little bit of anonymity.  If you fall into his category, then there are many ways of contacting us electronically.  You can email us, or use our contact form or debt calculator on our website. 

The final way to contact us is through our forum.  It is monitored by our debt counsellors, and we aim to answer all your questions within 48 hours.  There are sections for you to post generic queries, and any bits of advice that you may have come across, as well as a specific forum for asking our debt counsellors for help. 

Right, I'm going to talk about debt consolidation loans today, without getting on my soapbox, honest.

A debt consolidation loan is often taken out as a vehicle to reduce interest charges, therefore reducing monthly repayments.  They can also make paying off your debts easier, as there is now only one monthly payment to make.

There are several disadvantages to debt consolidation loans however, and they should only be taken out after you have seriously considered all the alternatives.

The first thing to consider is the terms and conditions of your current loans.  Are there any redemption penalties?  You don't want to spend any reduction in interest payments on effectively 'buying yourself out' of your original loans.

How long do you have left on your current loans?  A new debt consolidation loan may have a lower APR, but if it goes on for a lot longer than your original loans, you may end up paying more in interest. 

An example would be a £10,000 loan with an APR of 7%, over 4 years.  Throughout the term of the loan, you would end up paying £1494.20 in interest.  Lets just say you take out a consolidation loan for the £10000, over 10 years, and you get a great deal - the APR is 3.5%.  Thats half the APR of the original loan, so its bound to be cheaper right?  The total amount of interest paid over the 10 years would actually be £1866.30 - £372.10 MORE than you would have paid over 4 years.  If you dont believe me, check out this loan calculator from the FSA. 

One other problem is security.  The vast majority of debt consolidation loans take unsecured debt, such as personal loans and credit cards, and secure them on your property.  Now, if you make all your payments on time and in good order then you will be fine, BUT, remember these are no longer your ordinary personal loans.  If you have trouble paying them, you could lose your home!

Debt consolidation loans do have their place in the debt solutions industry, but should only be taken after consulting a debt counsellor.

If you are in need of debt help, and considering a consolidation loan, call MRA Debt Help on 01424 777156, where one of our debt counsellors can help you decide if it is the best solution for you.

Comparison and review site Which? has welcomed the latest announcement on irresponsible lending, calling it a 'Victory'.  Here at MRA Debt Help, we tend to agree!

The Prime Minister announced yesterday that there will be a new clampdown on the irresponsible lending of some creditors.  The bulk of this clampdown will be directed towards the use of credit card cheques and unsolicited credit card limits.

It seems that the divide between people is growing as my blog yesterday reported on the growing problem of people having credit removed from their cards with no warning.  Couple this with todays report on the amount of credit that has been issued to people with no warning, and the credit card industry seems to be a complete contradiction!

Peter Vicary-Smith of Which?, said that these practices have been going on for far too long, and that Which? had been campaigning for 6 years for this announcement.

If you are having problems with your credit card debts, on any scale, call MRA Debt Help on 01424 777156, where one of our debt counsellors will be happy to help.

The figure Britons are collectively paying in interest on their credit card debts is now £9bn a year.  The average person now owes £3256, and more than 2/3 people have at least one credit card.

These figures are the latest from Abbey, and they go on to say that only 36% of credit card holders pay off their credit card balance in full each month.  22% of people admit to having credit card debt for more than 4 years. 

Which?, and moneyexpert have also released figures recently, with Which? stating that credit card limits are being slashed by providers, with one customer having their limit reduced from £5400 to £150.

Moneyexpert back up these claims, saying that 2.7 million credit card holders had their limits reduced in the last 6 months.  An average of £1960 had been removed from their credit limit. 

If you are facing problems with credit card debt, then call MRA Debt Help on 01424 777156, where one of our debt counsellors will be happy to help

You may have read my recent blog regarding some websites that have caught the eye of the OFT.  Three of the non-compliant debt management firms have been named this week, as they have undertaken to improve their services.

The firms were facing having their consumer credity licences revoked after complaints from consumers and charities such as the Consumer Credit Counselling Services.  Buckley Stephens & Co Ltd, Pendragon Financial Services Ltd (both trading as Spectrum Financial Protection), and WKD UK Ltd, trading as Money Tailor, have all written to undertake full compliance with the OFT's Debt Management Guidance. 

Buckley Stephens and Pendragon have agreed not to take on any more debt management customers.  All three companies were alleged to have failed to provide their debt management services with due care and skill, failing to have appropriate complaints procedures in place, and not keeping clients informd of the negotiations progress. 

WKD has agreed to give clearer information on its website regarding its fees and services.  Ray Watson, director of consumer credit at the OFT has said, "The matters covered by these undertakings are very serious and we will work very closely with West Yorkshire trading standards to monitor their compliance.  If we receive evidence of a possible breach of the undertakings we will not hesitate to take further action. 

If you are in need of debt advice, call MRA Debt Help on 01424 777156, where one of our debt counsellors will be happy to help. 

Its that time of year again, when celebrities, sports stars and the like join together to get us to part with our hard earned cash.  This years theme is 'Do Something Funny For Money'.  Now normally my blogs are all about saving, and watching what you spend, but today is a little bit different.

No matter how much debt we are in, and how many letters are coming through the door, there is something we can all do for Comic Relief.  Watching the mini documentaries throughout tonight will show just what a good cause Comic Relief is.  We take so much for granted in the UK, that we sometimes forget just how well we live. 

The images of the children in Uganda suffering from Malaria, waiting for a vital blood transfusion from last nights Red Nose Climb documentary are enough to make even the hardest of us weep, and don't forget that Comic Relief also do a huge amount of work helping people in the UK too.

Raising money is a good leveller too.  Whether your one of the multi-billionaires from my blog yesterday, or you are struggling to keep afloat, in need of debt help, you can make a difference. 

Donating is easy.  Oxfam and Sainsbury's are selling Red Noses, T-shirts are available from TK Maxx.  Jamie Olivers new recipe book is available in all good book shops, and Sainsbury's - and at least £2.50 goes to Comic Relief.  You can also visit the Red Nose Day site to donate.

If you really can't afford to buy, or donate, then you can still do something 'Funny for Money'.  There are loads of ideas on the Red Nose Day site, and you can have great fun, while getting all your friends and family to donate to Comic Relief.

Right, that was a wee bit off topic, but never mind - visit the Red Nose Day website, donate some money and have fun!  Im off to do something debt related now!

If you are struggling with debt, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors

And now for something different!  Due to the numbers of clients currently being helped by MRA Debt Help, our franchise opportunity has never been more appealing!

Are you an Independent Financial Adviser or Mortgage Broker?  Do you accept or disregard clients who have unsecured debts? We are offering a franchise opportunity for select IFA’s, Financial Planners and Mortgage Brokers to benefit from our knowledge and experience in the Debt Management field.

Our franchise system will encompass all the focal areas of debt counselling, including debt management, IVA’s and Bankruptcy advice, and provide you with training, marketing materials and a guarantee not to recruit any more debt counsellors in your local area.

If you think that you can make a difference, and help debt management clients in your local area, then call MRA Debt Help on 01424 777156.

If on the other hand you are in need of debt help, then one of our debt counsellors can offer the most suitable debt solution for you.

OK, so its not really related to debt, but I couldn't help commenting on the Forbes rich list, which was released yesterday.  It seems that we are all susceptible to current world wide financial climate, whether you want to call it a recession, credit crunch or downturn.

Now, they're not exactly going to be checking the back of the sofa for change, or searching the loft for things to put on ebay, but the fortunes that some of the people on the list have lost are incomprehensible to most of us.

Bill Gates has returned to the top of the list this year, after 'only' having lost $18 billion from his personal wealth in the last 12 months.  But don't worry, he's still got $40 billion left!  Warren Buffet and Carlos Slim both lost $25 billion last year, leaving them in 2nd and 3rd respectively.

This year also showed a huge drop in the numbers of billionaires across the world.  1125 last year has reduced to 793, a drop of 30%. 

If your fortune has dwindled, and you need debt help and advice, then call MRA Debt Help on 01424 777156, where one of our debt counsellors will be happy to help.

The OFT has cracked down on misleading debt management websites this week, concentrating on those using copied content.

A press release from the OFT has said that 11 companies from the 'Financial Management' sector have been requested to close down their websites immediately.  The sites are charged with using domain names similar to those of the big debt management charities such as the CCCS, and the CAB.  They are also accused of using content that is identical or sinilar to that of the charity websites.

They have warned consumers to be careful when visiting debt management sites, and that all debt management firms must have consumer credit licences.  You can check this on the OFT website. 

When seeking debt advice, always make sure that you are speaking to advisers from a firm licenced under the consumer credit act.  MRA Debt Help is licenced under the consumer credit act as a debt adjuster (Mike Robertson Associates Business Solutions Ltd).  Our licence number is 0576191. 

Anyone that reads our debt management blog will see that 'Debt Management' features quite regularly!  But what actually is debt management?

Debt Management can be described as simply spending less than you earn, or a structured repayment plan set up by a designated third party, either formal or informal, which can be as a result of a court order or as a result of personal initiation.  Debt management plans are offered by many organisation nationwide, from the Citizens Advice Bureaux, The Consumer Credit Counselling Service, National Debtline and MRA Debt Help. 

To start the debt management process rolling, a debt counsellor will take a huge amount of information on the client, known as a factfind.  They compile a list of all the clients creditors, including current balances and also the clients income and expenditure.

The debt counsellor can then look at any disposable income that the client has, and calculates how to distribute this to the creditors equally.

This information is then used to construct a common financial statement (CFS).  This is a document recognised by the credit industry.  It is sent to all the clients creditors, along with a letter offering the new, lower payment that the client can afford.

The debt counsellor then negotiates with the creditors to arrange the lower payments, and potentially freeze or remove interest from the accounts. 

The debt counsellor then acts as a point of call for both the client and the creditor, reducing the amount of stress inducing phonecalls and letters recieved by the client, and reviews the clients situation on a regular basis to ensure that the CFS is still accurate.

The client makes one easy monthly payment to the debt management company e.g MRA Debt Help, who the distribute the payment as per the CFS.

If you want any more information on debt management plans or any other debt advice, then call MRA Debt Help on 01424 777156

Yesterday we looked at the first steps to a debt free lifestyle. So far, we've admitted that there is a problem and decided to do something about it. We've sat down and worked out our income, expenditure and the balances on the debts we currently owe. Now what do we do?

Lets have a look at the debt solutions that could potentially be open to us. The 'Big 4' are Debt Consolidation, Debt Management, IVA's and Bankruptcy. From April a 5th option will be available called a Debt Relief Order. Administration orders are also available to some clients. Today, I will briefly outline the main points that separate these debt solutions, and later we'll go into more detail about each of them individually.

Lets start with one that you've probably all heard of and fear - Bankruptcy. 

Bankruptcy is the severest way of dealing with debts you cannot pay. Bankruptcy proceedings free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and make sure your assets are shared out fairly among your creditors.

Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves. 

Bankruptcy should only be considered as a last resort for people who are deeply in debt. While there are situations where it can be useful, in most cases, other forms of debt management would be advisable, as when you declare bankruptcy the restrictions placed upon you are severe, there are many implications relating to Bankruptcy, some of which are listed here.

IVA's.  Anyone who's ever seen any daytime tv will have heard of IVA's.  It seems that every advert that isn't comparing car insurance is trying to seduce people into an IVA.  But what actually are they?  Well they're nowhere near as easy as the cheesy adverts would have you believe! 

An IVA is one of the most extreme forms of debt management.  It is a legally binding agreement between you and your creditors to pay a reduced amount each month.  It must be accepted by creditors representing at least 75% of your total debt, and will last a set period of time, usually 5 years. 

But be warned.  Failing to make payments on an IVA can be catastrophic.  If your circumstances change, e.g you are made redundant or have to accept a lower wage, then the creditors have to agree to accept your IVA again.  If they do not agree, then your Insolvency Petitioner will have to petition for your Bankruptcy. 

Debt Management is up next.  Often regarded as similar to an IVA, it also involves negotiating with your creditors, but that is where the similarity ends.  a Debt Management Plan is an informal agreement with your creditors, designed to help you clear your debts at a reduced level that you can afford.  As it is not legally binding, there are no expensive legal fees, and there is no contract to put your property at risk.

MRA Debt Help have built up a good rapport with many creditors, and as such can create Debt Management Plan's that are beneficial for the client. 

Debt Consolidation loans are often taken out to reduce the interest on their current loans and combine the payments to make things easier, but often result in the client actually paying more!  Debt consolidation loans are often paid off over a longer period of time, meaning that even with a lower interest rate you will pay more in the end! (If you dont believe me try putting a few scenarios into a loan calculator)They are also often secured on your property, meaning if you default on the payments, you face losing your home. 

Hopefully this has given a little insight into the different debt solutions available.  Don't forget every client's situation is different, so call MRA Debt Help on 01424 777156 to speak to a debt counsellor about the best debt solution for you.

Creditexpert, part of the Experian credit reference agency have released some amazing debt news this week.  A staggering 19% of people have admitted to keeping their money worries secret from their partners.  Thats around £30bn of debt hidden from the ones we love the most. 

And thats only the start of it.  10% of people asked admitted to having a secret bank account that their partners were unaware of.  3.2 million of us!  27% of us admitted to having sneaky peaks at our partners bank statements, 13% havn't told their partners the amount of store cards or credit cards they have, and 15% of us hide the amount of bonuses or level of earnings we have!

Well that all makes us sound very dishonest and sneaky doesnt it!  But it's natural.  Pride is a very strong emotion for a lot of us, especially when it comes to financial independance.  At MRA Debt Help, we see a lot of people that have hidden debts, or their partners are unaware of their full situation. 

Back to the CreditExpert stats, and it seems that women seem to be more secretive about their spending habits, with nearly 3 times the amount of men being secretive about how much they spend on clothes and shoes.  (Isn't there a film about this coming out soon?)

But its not all the ladies' fault, as a higher amount of men are more likely to hide information about their income and bonuses.

If you need debt help or advice, have hidden it all away, and want someone to talk to about it, call MRA Debt Help on 01424 777156.  Our trained debt counsellors will be pleased to help.

The CAB has released figures, gleaned from debt enquiries in July 2008 that prove a worrying read.  It claims that, out of the enquiries received in that month, the average client would take 93 years to pay off their debts. 

They go on to state that the average amount owed was £16971, the equivalent of 18 times their monthly income.  50% of them had no spare money, 20% had no equity, or were in negative equity, and 33% had mortgage or rent arrears.

And this was all before the credit crunch really took hold.

The amounts of people seeking help from organisations such as the CAB, and MRA Debt Help, has shown a huge rise since then, making the prospects of these figures reducing seem bleak.

If you have any issues with debt, then call MRA Debt Help on 01424 777156, where one of our debt counsellors can help you find the best debt solution for you.

When writing about debt, many people seem to go straight for the jugular - Bankruptcy this, IVA that, with a smattering of Debt Management or Debt Consolidation in between.  One thing thats often forgotten is the first few steps to a debt free lifestyle.

The first, and most important step is to recognise that debt is a problem.  Without this, it doesnt matter if you know the difference between an interim order and an administration order, or how long it takes for a Bankrupt consumer to become discharged - your debt will not go away.

So, with your head firmly back out of the sand, it's time to do something about your debt.  The next step is to turn off the tv, make yourself a cup of coffee, and sit down with your bills, payslips and all those statements that have been flying through the door.

We'll take things in order to make it easier, so start with your income.  Don't forget to include your salaries, and any benefits, pensions or other income, such as if you take in lodgers or students - it's all important. 

Next, write down any savings accounts and investments you may have - don't forget that property and vehicles are assets too.

So far, so good.  You should now have a clearer picture of how much money you have coming in on a regular basis.  Now for the REALLY important bit. 

Yep, its time to write down how much you spend.  I can't stress how vital it is to get this bit right.  Cutting a few corners to make your budget form look better, without actually cutting your expenditure can make it look like you have more disposable income than you actually have.  This makes your debt counsellors work more difficult, and could potentially lead to them offering you the wrong debt solution!

Start with the big items, the obvious ones, such as your rent/mortgage and all your utilities.  Don't forget any insurances you have such as Boiler Cover, Mortgage Protection and Buildings & Contents.

Next move onto other important items.  Add in things such as fines, child maintenance, hire purchase agreements and pensions. 

And now for travel - again, don't miss anything out.  Include everything you pay out for your car and public transport, including servicing, insurance, parking charges etc.

Housekeeping.  A biggie!  It's worth looking through a few receipts and bank statements to see how much you really do spend per month.  Remember to include your toiletries and pet food!

Finally, look at everything else you have spent money on, be it clubs, dentist bills, socialising - the works. 

Well done!  Nearly there!  It may be starting to look a little frightening now, but don't worry - keep going, and it'll help your debt counsellor to look at your situation properly.

Its time to look through your debts.  Start with all your priority debts.  These are things such as your mortgage (and any other secured loan), any court fines, Council tax and utility arrears, and any outstanding maintenance/child support. 

Then seperately, add up all your non-priority debts.  These are your credit cards, loans and overdrafts.  Be sure to include all of them, and write down the balances as up to date as you can.

Now, that wasn't as hard as you thought was it?!?  Hopefully, if done properly, it should give you a better idea of your financial situation.  At MRA Debt Help, we often find that people look at it and think "Do I really have that much left at the end of the month?".  If so, its worth going over and making sure you havn't forgotten anything. 

Right.  You've written down everything you can, and have a good idea of your situation - whats next?  Call MRA Debt Help on 01424 777156.  One of our debt counsellors can then use the information to ofer you free debt advice, and help you to free yourself from debt. 

If all of this seems far too daunting, then don't worry!  We can guide you through the process and help you every step of the way.