When the mess that your ex-tenants leave behind is financial, it’s seldom a quick thing to tidy up. For one lady, an 80 year old landlady from London, the financial mess left by her young tenant nearly turned into serious debt problem. It all started four years ago, when a young French tenant left her rented room in London and returned to France. There was nothing unusual about the circumstances under which the tenant left and shortly after her departure, her mail continued to arrive and was duly forwarded on to her French address. Interspersed with her mail were letters from NatWest. The landlady continued to forward these as normal but as the frequency of the letters increased, she began to return these to sender, using the address on the back of the envelope.

The letters didn’t stop. Anxious about the nature and frequency of these letters from a bank, the landlady decided, mainly out of a mixture of frustration and desperation, to open one of the letters.
As she had suspected, the young French lady had defaulted on a loan and was being chased for the debt. In an attempt to explain the situation and assist NatWest in their efforts, the landlady phoned the bank. She was concerned that, by association, her tenant’s debt might begin to affect her. Could bailiffs turn up, looking for payment?

Rather than having her debt fears put to rest by one of the bank’s advisors, the landlady was instead threatened with the prospect of legal action for opening private mail to their client. Her own financial situation was quite healthy but she was still in a precarious position; retired and supplementing her pension by letting out a room. How would this affect her credit rating? Could she really be held responsible for the financial mess left behind by her tenant?

First of all, your credit report just contains financial information that concerns you. It will show the names of your Financial Associates, anyone that you are financially connected to, but this doesn’t include tenants. Your score will not be affected by anyone who either has lived, or still does live, at your current address unless they are listed as a financial associate on your credit report. Receiving bills, or even a notice of impending debt collection, that are addressed to a previous occupant or tenant have no impact on your credit rating as long as they’re not a Financial Associate.

A dedicated debt advisor at Harrington Brooks will be able to take you through any debt concerns that you might have. So, if the stress of mounting debt is getting to you, visit www.harringtonbrooks.co.uk.

Harrington Brooks Scam Advice

Below is a list of the top ten techniques for avoiding a scam  so you’re better equipped to keep yourself and your savings safe.

1. Keep a grip on your bank account.

Account takeover is where fraudsters impersonate you by gathering your personal information and then contacting your bank. This is essentially identity theft and while posing as you, they can transfer funds out of the account or change the address on your account and request replacement cards to be sent to the new address. So, shred any sensitive material and make a note of when your statements are due. If they’re delayed, it could mean they have been intercepted.

2. Be safe with pin numbers and passwords.

Don’t write down your Pin as you run the risk of fraud and if the worst were to happen, your bank could refuse to refund you as they believe you were negligent with your details. Never share your Pin with anyone and try to use different passwords for all your accounts.

3. Bring down your credit limits.

This is essentially an act of damage limitation. Reducing your limits can cap any potential losses if your cards are stolen. Keep an eye on lenders increasing your limit without your consent too. New laws will give you the power to opt out of these unwanted credit increases.

4. Cancel any cards you don’t use.

With 66 million credit cards in the UK and only 49 million adults, it stands to reason that people have more than one. Check what cards you don’t use anymore and cancel them. The fewer cards you have, the less likely you’ll be a victim of fraud.

5. Don’t get caught out a phishing scam.

“Phishing” is when an email is sent to you by fraudsters, claiming to be your bank. A favourite scam.Chances are, it’ll have your bank’s logo and give a return email that looks genuine. Normally, you’ll be warned about a breach of your account and to log in. Then you’ll be sent to a fake site that collects your details for the fraudsters. Your bank will not email you if your account has been breached, they’ll most likely phone or write to you. Always ensure you go to your bank’s website directly and don’t follow these links if you are suspicious

6. If in doubt – Google it..

if you have the slightest inkling that something is a scam, Google it and append the work scam. Changes are someone will have posted it in a forum or blog post to warn others.

7. Consider a pre-paid card.

You can just top up the card and use it like a credit or debit card, it has Chip and Pin so can be used securely in shops and you can use it to draw money from cash machines. It isn’t linked to a current account or credit card though, so you can’t over extend it. You’ll normally pay a fee to take out a prepaid card though.

8. Keep an eye on your statements

Get into the habit of going through your bank and card statements, rather than just tossing them aside. Your statement tells you exactly when and where the card has been used, so if it wasn’t you or there are any suspicious transactions, let the bank or card company know straight away.

9. Guard against viruses and malware.

Many banks offer free security software to protect your computer from attack. A virus will normally wait until you log in to your online banking and insert a dummy page. If you enter your personal data it will be sent via the virus to the fraudsters.

10. Keep a grip on your card.

Criminals can get hold of your card details by skimming the card through a special machine that stores the data. They then transfer the info to a fake card and use it in countries that don’t have Chip and Pin readers. Chip and Pin readers are hand-held so you can see what’s happening. They shouldn’t need to take your card anywhere.

Harrington Brooks are here to help you with a host of financial queries. If you’re worried about a scam, debt or other financial issues, stop by www.harringtonbrooks.co.uk and get in touch with one of our dedicated debt advisers.

Taking the example of a graduate with a pre-existing backlog of student debt, with earnings amounting to less than a thousand pounds over the year, they would be able to achieve £3000 worth of debt, spread across a few stores. Not only are these store cards a notoriously expensive way to borrow, some have such high rates of interest, those over 25%, that they must come with a warning to potential borrowers that cheaper rates of interest for credit are available elsewhere. However, such is the ease of qualification for this type of store credit that these warnings and high interest rates may not serve to put off individuals that have struggled to attain credit from other streams. This is an already vulnerable section of the marketplace but luckily, there are avenues of assistance open to those people facing dept problems.

Although spending on store cards is often curtailed by a lower credit limit than is available with a standard credit card, the aforementioned high rates of interest and the sale of these cards by under qualified staff in high street stores, who tend not to be interested in their customer’s suitability for credit, amounts to a risky debt scenario. It’s quite a common problem too, with Finance and Leasing Association estimating that there are almost 15 million store cards currently in circulation, amounting to about £3 billion worth of store credit. These figures are the result of the accessibility of store credit, at the very check-out where you can begin to build up the debt.

Harrington Brooks are one of the longest established financial institutions in the country and are only a phone call away if you are looking for expert advice about how to deal with your debt. If you think you need some debt advice, try the free, 15second debt wizard at Harrington Brooks to help you find the best debt solution for your circumstances.

Over the years, personal debt has become easier to accrue and the amount of debt that it’s possible to get into has grown. However, the further we push this side of the fiscal equation, the bigger the payback.

We are currently reeling from an extremely well publicised, debt fuelled financial crisis that affected us all on a global scale. However, the more emotive debt warnings come on a local, more personal level. The effect of debt related stress on our families and on our mental health is something which it is very important to consider when counting the cost of this financial phenomenon. It can be all too easy to regard debt as a problem that affects other people simply because we’ve, thus far, managed to keep our credit cards on a tight leash. If the world financial crisis teaches us nothing else, it has highlighted how dependent we are on one-another’s money.

Occasionally, we may be reminded of an era where personal debt was essentially unheard of. Mortgages were acceptable but the idea of unsecured debt, of spending money you simply didn’t have, just wouldn’t do. There was a time when the credit and store cards that feed our families, didn’t exist. Obviously, no-one really wants a regression to those dark days but can we continue down this road towards a life of consumerist fantasy, well beyond our means? Can we be trusted with our credit card?

So, should there be an imposed limit on our level of personal debt?

There is certainly a solid argument in support of a cap being placed on personal debt. Some measure in place to keep our debts in line with our salaries, existing savings and the extent of our other debts. As mentioned, the term personal debt can itself be misleading. A lot of the debt that we consider to be personal has a much wider impact, as emphasised by the present housing market. Although we’re currently experiencing a fall in house prices, it’s still extremely difficult for first-time buyers to take their first step onto the property ladder. This artificially inflated value could be the result of the debt encouraged by mortgage lenders, driving up prices. If personal loans had been capped, prices would not be at their current levels.

It is generally accepted, for personal debt accumulation to begin during our years at university. There is something inherently contradictory in this relationship, between the aspirational drive towards future prosperity through education and the acceptance of personal debt as its side-effect.

Also, any effort to cap debt would mean less consumption. In our world of boundless consumerism and instant gratification, this just might not stand. It’s hard to argue against plain and simple saving-up, but we want it now and can often, within reason, have it now.

Once again, the housing market makes an excellent illustration of the principles of capping. Admittedly, the mortgage market can be accused of padding out salary figures to deliver us more than we can afford but the principle is that we are leant what we have an ability to pay back. However, will there be anyone brave enough to stand up and tell us to consume less, spend only what we can afford and live within our means?

Well, probably not. It’s worth considering though, that personal debt is seldom accrued due to a passion for champagne, fast cars and the finer things. In the real world, the boiler packs up and car needs breaks down and if you’re broke, you either have a cold shower and walk to work or you take on some debt and get them fixed. There’s no questioning how useful it can be to have an overdraft, credit cards and a mortgage. The fact remains that treated responsibly, debt can be an extremely valuable tool.

Lenders are as anxious to avoid bad debt as anyone. To this end, their underwriting requirements are designed to allow conventional credit streams to restrict personal debt to a level that the individual can service. Ultimately, they’re always monitoring too, so if they want to reduce a credit card limit or close a card account, they will.

So, in an age of responsible lending, shouldn’t we also embrace an attitude of responsible borrowing? After all, any limits placed on our borrowing would have to be means tested, as what’s regarded as a lot of money by some people, may not be by others. Thus, our circumstances would impose a natural limit on our level of personal debt. The government would be better employed ensuring that lenders are acting ethically and help personal debt to remain what it is, personal.

The credit crunch seems to have affected us in a big way, not just our wallets, but our health as well. According to the Telegraph, a debt counselling charity called Christians Against Poverty has stated that there is a shocking increase in the amount of people approaching them with stress and anxiety problems. Of these people, 40 percent have been put on medication. More shocking is the fact that five percent of these lost souls (think they should be called something other than lost souls!!) have attempted suicide, with a further 31 percent admitting that they have considered it. Obviously something has to be done before things get worse.

Many people seek the advice of medical practitioners to help them with their stress stemming from financial woes. But what many people need is someone who will offer them advice, not a quick fix to make them feel physically better. Stress has quite a few tell tale physical signs, like headaches, panic attacks, high blood pressure and hyperventilation. What medical experts need to do is listen to the problems of their patients before prescribing pills. Stress is more of an emotional and mental condition than a medical one.

When people stress, they feel like they have lost control of their lives. These feelings of helplessness, desperation and confusion can be overwhelming. This can therefore lead to depression and anxiety, two very real and serious conditions. And what is worse, your sleeping and eating patterns may also be affected.

If you find yourself in this rather unfortunate position, it is best that you seek professional advice straight away. But there are a few things you can do yourself, such as trying to change your mindset. There are many legitimate reasons why people get into debt, so the last thing you should do is blame yourself. Here are a few more helpful tips on how you can cope under stress and start regaining control over your life.

• Learn to make time to relax each day, or do something that makes you feel happy and content
• Try to avoid nicotine, caffeine and alcohol as these can increase stress
• Accept that everybody makes mistakes and learn from them instead of putting yourself down
• Don’t go through this alone. Talk to a professional or a trusted friend. Do not bottle up your feelings. This will only add to your stress