Debtiva's Weblog

Missing payments can impact on future debts

debtiva — Mon, 04 Feb 2008 09:26:14 +0000

Debts

Recently I dealt with a young couple hoping to buy their first home. Buy the guy had a missed acouple of payments on a credit card claiming that there was an issue with the directdebt. Although, no one ever admits they were just skint and missed it is a mistery, but I said ok and we wnet along. We applied for a mortgage, and although tha case fitted criteria, the lender would not do the case. Aparently,. they just didnt like it. This somejuect need to be exppained in greater detail, but the problem, now ifs that the mo0rtgage they do get will be much more expensive, and this all because he missed a couple of payments!

To get ‘debt smart’ and reduce debt stress please call The Debt Counsellors for expert debt advice absolutely free of charge by telephoning 0880 018 6081 or simply by navigating to The Debt Counsellors website and clicking ‘Live chat’.

Be ‘smart’ and Savvy about debt

debtiva — Mon, 04 Feb 2008 09:17:28 +0000

Be ‘smart’ and Savvy about debt

Channel 4 presenter, Cesarina Holm-Kander, has stated on the Channel 4 web site, that she believes that people are complacent about their finances, and should be more ‘smart’ and ‘savvy’ when it comes to money. She said that “consumers, with regard to their personal finances should avoid debt problems”

Research from You Money Matters found that a ¼ of consumers in the UK think that the value of the pound in world markets will fall causing a full blown recession.

Is missing payments increasing debt?

debtiva — Mon, 04 Feb 2008 09:17:18 +0000

Is missing payments increasing debt?

It is estimated that five million credit card customer have missed a payment on the bill over the last 6 months!

Research undertaken by MoneyExpert, has shown that 11% of peoploe with credit cards, have missed a payment, on the card, and this is coupled with new figures showing high levels of insolvencies.

It does seem that the credit crunch, although not directly related, could have another meaning.

Getting credit is very easy, therefore producing more debt

debtiva — Mon, 04 Feb 2008 09:17:07 +0000

Getting credit is very easy, therefore producing more debt

A recent survey by the debt counsellors, has shown that many people believe that getting credit is easy. Some of those who took part said that they didn’t know what an IVA was, even though they were in a web site for a company who helps with debt, so the people on the site should have had a better grasp. Does this mean that there are huge numbers of people who just don’t need to know, or does it mean that people are just not educated in these things.

Debts – can bank charges effect people

debtiva — Mon, 04 Feb 2008 09:16:57 +0000

Debts – can bank charges effect people

In a recent court hearing, a High Court judge, is listening and reading a number of documents which argue the point that several banks are over charging. Most people will agree that banks are businesses and what they charge is up to them, but as everybody need to have a bank, then surely they have a duty of care. Many banks will charge up wards of £30 for a returned direct debt, this can effect people greatly especially those with low incomes, a few of these missed payments and then they are looking at a £100 or so, making this money up can be hard, and cause future issues.

Can credit companies hinder your debt.

debtiva — Mon, 04 Feb 2008 09:16:47 +0000

Can credit companies hinder your debt.

In a recent article in the Independent, it was stated that only 1% of mistakes happened on the credit files of individuals. But at 400million credit records, there are still 400,000 that could be affected!

This could be a range of things, such as an argument with your mobile phone company, or a utility bill.

These companies, especially the Water companies will through CCJ at any debt, very quickly. But what if their system is wrong, or what if you just missed something? If a CCJ or default goes onto your credit file it is there for 6 years, effecting in many cases, your whole future!

Borrowing and debt exceeds GPD!

debtiva — Mon, 04 Feb 2008 09:16:36 +0000

Borrowing exceeds GPD!

In Britain, we have racked up so much debt, with various loans and credit cards etc, that the total borrowing, now exceeds the total GPD! Financial Consultant Grant Thorton, forcasts that the GPD will hit £1.33 trillion this year. And lending will be £1.35 trillion, including mortgages, credit cards, and loans.

It does beg the question, of where is this going to end up?

New rating system to asses debt if unveiled

debtiva — Mon, 04 Feb 2008 09:16:26 +0000

New rating system to asses debt if unveiled

Scientists at a university in Edinburgh have come up with what they believe the be a more honest approach to assessing risk fir lenders of money.

They say that taking interest rates, along with earning, consumer confidence will help assess risk more accurately

The University now hope that banks and other lending companies will test the new system.

Could their be a spike in insolvencies and debt.

debtiva — Mon, 04 Feb 2008 09:16:14 +0000

Could their be a spike in insolvencies and debt.

This year has seen interest become high, with just a wee drop at the end of last year. For may who found a comfortable mortgage a couples of years ago, they maybe coming to the end of 2 year fixed rate. This means that they are looking to mortgagee in many cases. But now they face a higher rate in many cases as the rate of interest has gone up. Some people may have even occurred some credit trouble and received CCJ’s, or Defaults.

In this situation, they client would be in a tough situation. Maybe their existing lender will keep them on at a half decent rate, but this maybe still subject to credit checks.

Fall into debt of the white collars

debtiva — Mon, 04 Feb 2008 09:16:02 +0000

Fall into debt of the white collars

The BBC recently wrote and article about the fall from grace of former newsreader Ed Mitchell. He stated that because he was high profile and that he earned good money, so the banks lent him fortunes.

In this situation, many feel comfortable to borrow more and many life the life of Riley, but if they hit on hard times then they can soon find themselves in trouble, and some like Ed hit the wall hard. Ed is now living on the streets, after going bankruptcy.