LloydsTSB have repaid the credit agreement between themselves and 49 year old Michael John.  At age 18, Michael was serving in the Duke of Wellingtons Regiment on tour in Londonderry, Northern Ireland, when he was shot in the head at point blank range. He spent 4 months in a coma, and it was unsure whether he would survive.

31 years later, and Michael suffers from partial paralysis, slurred speech and occasionally confused thought processes. In 2003 he took out a £50,000 loan with LloydsTSB, secured on his previously unemcumbered property.  It is not known what the loan was for, but has been speculated that he was a victim of a lottery scam.  Every time he visited his bank manager, his debt problems increased.  In 2004 he took out a further £25,000 loan.  In 2005, he was offered a further £21,000, which he took.  2006 saw Michael take another £10,000 loan, as did 2007.

Michaels debt burden was increasing, to the point where nearly 75% of his benefit and war pension income was being spent on repaying LloydsTSB loans.  But Michael never sought debt help.  Unaware of his impending debt problems if he was unable to make the repayments, he eventually went to his local Royal British Legion for help in buying a lawnmower.

Major Paul Mulingani, from the Legion in Nottinghamshire visited Michael about his lawnmower and was shocked to find out that Michael had more pressing matters.  "When I looked around at the house, I could see it was in need of redecoration.  WhenI asked Michael why he hadn't done it, he said he couldn't afford it."  Said Paul, speaking in the Evening Post.

Acting as a debt counsellor for Michael, Paul delved deeper and found the details of Michael's loans.  Working with the Evening Post, the legion took LloydsTSB to task over the case, and have had a fantastic result.  The injuries suffered by Michael had affected his decision making ability, leaving him open to abuse from the banking system.  LloydsTSB have repaid the entire credit agreement, leaving Michael with his full income back and regaining control of his home.  

If you are in need of any form of debt help, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors.

 Yes, you read it right.  Nationwide have released (very quietly) a new 125% mortgage product amongst its other new releases recently.

With the amount of debt management cases rising, and other debt solutions such as IVA's and bankruptcy also looking gloomy, why would Nationwide announce a product that now seems so taboo?  Well, it seems that they are trying to tap into an ever growing market of consumers in negative equity.  

If you find yourself in negative equity, the usual advice is to stay put and ride out storm, and seek debt help if you need to.  For some though, this may not be feasible, and this could be where Nationwide's new mortgage could come in.  

The new mortgage is only available to Nationwide customers, and only available to those who can afford the payments.  They can take a new loan of up to 95% of the property, and carry over up to 25% to cover the loss on the drop in value of their old one.  It is likely that the payments for the extra 25% will be quite high.

While this may not be suitable for many consumers on debt management plans, it does show that some lenders are trying to include other consumers, such as those in negative equity.

For debt advice call MRA Debt Help on 01424 777156, where one of our debt counsellors will be able to offer the best debt solution for you

Post to twitter test by admin

Break out the champagne bottles and roll out the dancing girls, the mortgage rescue scheme has finally been of some help to consumers! 

Well, when i say some, I mean 6.  The total amount of households helped by the £200 million pound scheme has risen to the giddying heights of half a dozen.  In a press release on Monday, Moat housing (who run the scheme in Kent Essex and Sussex) proudly told the world that they had now helped a grand total of one couple.

Yes, 7 months after its inception, the first and only household in the 3 souheast counties has received help from the scheme.  If I was them, i'd have probably kept quiet rather than tell the world of my uselessness! 

7 months, £200 million, all to help 6 households?  It is slightly worrying that the press releases by the organisations involved seem so cheerful.  I'd be slightly peeved to spend £200 million on 6 people.

You may have detected a certain amount of sarcasm in this debt management post, which is entirely intentional and I make no apologies for it! 

If you feel that the mortgage rescue scheme may be of use to you, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors

A government white paper revealed today by Lord Mandelson, the business secretary, has made waves in the debt management industry, after attacking credit card companies.

The paper, snappily titled 'A better future for consumers - delivering real help now and change for the future' has set out to ensure that lenders are more responsible in their role.  Some of the points highlighted by the paper are:

The use of credit card cheques.  These cheques are usually subject to a higher interest rate than normal, and often include 2% handling charges.  They are often sent out by lenders, particularly to potential debt management clients.  Under the white paper, these would not be banned completely, but would only be able to be sent out on request by the consumer. 

Raising credit limits.  Lenders have been attacked by consumer action groups for a while now, over their tendancy to increase consumers credit limits without notice, encouraging irresponsible borrowing, and leading consumers into potential debt management problems.  The paper also looks to address instances where lenders have increased interest rates on existing debts.

The paper will also look at introducing a consumer advocate, and a review by the OFT into highcost credit such as payday loans.

If any of the points in the white paper affect you, call MRA Debt Help on 01424 777156 to speak to one of our debt counsellors