Update on - Debtwizard gets a shock! last posted , 19 June 2009

Remember the 64 year old gentleman living in sheltered accommodation and who was on disability benefit and had his house repossessed 20 years ago after a business venture went wrong. Well I was generally shocked that he was still paying for the debt after all this time. More on this blog of the 19 June 2009 can be found here.

The gentleman called me yesterday and stated that he was not well because he has recently undergone a kidney operation but was now worried as the firm chasing this 20 year old debt has said they want him to increase the payment from the £10 per month and intend to send someone to his home address and review his circumstances. I am in receipt of this letter threatening the action and hope to do things next week to help resolve the situation, will keep you posted on this one.

Spare a thought for the unemployed.

Many will eventually find new jobs but they will not match or improve on their previous salaries and as a result thousands will free-fall into debt, some will end up bankrupt or propose an Individual Voluntary Arrangement, IVA.

There will also be others that will not be able to pay their mortgages and will eventually lose their home. The high unemployment figures will have an impact on the both the insolvency and house repossession figures.

There is also real concern about how these individuals will motivate themselves into getting back to work.

Unfortunately some will drop into depression or turn to alcohol, gambling or even crime in an attempt to solve their debt problems.

From experience many will not address their debt issues for well over a year from when they first arose and will often ignore the fact that they have a serious debt problem growing everyday.

Creditors also need to be more understanding and sympathetic towards borrowers who find themselves suddenly out of work and take note when someone is a ‘can’t payer’ instead of a ‘won’t payer’.

Debt can consume your life. These people need support from their families, friends and creditors both emotionally and financially. They also need to have clear goals on how they can manage their debts. The best way to start is to draw up a budget form, prioritise which creditors need to be paid first such as mortgage and rent, followed by utilities.

It is a clear fact that once you get control of your debts you get back control of your life.

Egg credit card

This could just be the start of something quite big with all the other credit card providers quickly following suit. A £1 per month may not sound a lot but over the coming months or years this could easily be increased once the consumer has got used to paying a fee for the credit card.
Some borrowers will not be affected by this as they will keep on top of their spending and recoup their annual charge through the cash back scheme being offered but there will be many thousands that will find themselves trapped in the cycle of debt.

They  will have to pay this monthly charge whether they like it or not so you can see how this potentially will become a big earner for the credit card companies and this is on top of their cash withdrawal fees, balance transfer fees and transactions abroad.

Bottom line; don’t use credit cards unless you can repay the balance at the end of the month.

Tax credit renewals date expires 31st July 2009

It’s simple, you have until 31^st July 2009 to get your claim in, I have detailed the government’s very helpful website direct.gov.uk no excuses if you fail to claim what is being offered. Just remind your friends and family if you feel they may be able to qualify.