January 25th, 2010
For a while, there’s been a loophole which has allowed lenders to repossess people’s homes without having to take them to court. Finally, the Government has made an announcement that there are plans to close this legal loophole and offer better protection to homeowners facing mounting debt. At present, a lender is fully entitled to seize and sell off a property without the permission of either the homeowner or a court. It’s shocking that it is only as recently as last year that this issue came to light, when a lender repossessed a property after the borrower fell into arrears with their debt repayment. Although the mortgage lender had never gone to court to secure a repossession order, they evicted the owner on the grounds that they had secured a buy to let mortgage and were living at the address themselves. Therefore, they were evicted on the grounds of trespassing and the resulting media coverage brought the issue to the public’s attention.
The Ministry of Justice has released a statement suggesting that, while there was no evidence that this was a tactic being employed by other lenders, they felt compelled to close any loophole that allowed lenders to repossess properties belonging to vulnerable homeowners, without the need to attain a court order. Thus, in a proposal which was released recently, the government included a consultation document concerned with the security of homeowners facing the threat of repossession. The threat of mounting debt and bankruptcy has been high in the wake of the banking crisis and subsequent recession. Government figures have stated that over 33,000 people had benefitted from their advice scheme in the year up to September. This speaks volumes of the importance of specialist debt advice in helping to save individuals from the severe consequences of mounting debt; in particular, bankruptcy and repossession.
The loss of your home is one of the most traumatic events anyone can face. Keeping the roof over your family’s head is a defining factor in terms of your self confidence but debt can arise from a huge variety of causes and affect anyone at anytime. You simply must ensure that you speak to a trusted, independent debt advisor at the earliest opportunity. This will help you to avoid the most intrusive, severe debt solutions and help you to safeguard your home from the threat of repossession.
These Government schemes, combined with lender forbearance and low interest rates, have prompted the Council of Mortgage Lenders to re-evaluate their prediction for the number of repossessions, cutting the figure by a third, to 48,000. This is encouraging but safeguarding your home requires commitment and swift action. Get in touch with a debt specialist who will be able to outline the debt solutions that best suit your circumstances. Harrington Brooks is one of the longest established financial practices in the UK and have an unrivalled reputation with the Government’s Legislative bodies, industry regulators and creditors. For a tailored solution to your debt problem, the debt wizard at http://www.harringtonbrooks.co.uk/ is a fast, free and easy way to free yourself from the burden of bad debt.
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January 22nd, 2010
Everyone’s financial circumstances are different. The way we budget, manage our income and service our debts; all based on a diverse range of criteria, founded on our personal priorities. When we talk about personal finance, that’s what we mean. That’s why a “one size fits all” approach simply doesn’t work when looking to solve the Great British public’s debt problems. After all, each individual’s route into debt will have been based on a range of pressures and a different set of circumstances. Even the most common of credit streams, the overdraft, can be used in a variety of ways to suit your specific needs. Again, people use their current accounts in their own way, to suit their income. So, banks should apply any overdraft charges in a way that suits this individualised use of the service. Sadly though, this isn’t the case.
The charges imposed for inadvertently breaching your overdraft limit can be intensely frustrating and an argument has recently arisen over your banks power to halt any payments that would push you over your limit. In a recent survey by a leading UK consumer group, it was found that almost half of us would like to see banks ‘bounce’ payments that would take you over your arranged overdraft limit. Only 38% of those surveyed said they’d prefer that their bank honour such a payment and charge them accordingly. These findings were prompted by a Supreme Court ruling that unauthorised overdraft charges did not fall under the jurisdiction of the Office of Fair Trading.
This highlights two very different attitudes to what is, essentially, another form of credit. As a current account holder who goes over their overdraft limit, you are effectively being lent money without asking for it and then being charged an excessive amount for the service. Breaching your overdraft limit to any extent can incur fees of £35 or more but the actual cost to your bank for providing this service could be as low as £2.50. Therefore, these charges are generating an estimated £2.6bn of revenue for banks each year. The answer would appear to be offering this service only to customers who ask for it, allowing others to view their overdraft limit as just that. This is not without its difficulties though. Cheque payments which have been guaranteed with a bank card must be honoured. There is also the view that halting these payments could lead to more severe financial difficulty later. If, for example, you have direct debits set up to cover the cost of your utility bills and your bank was to ‘bounce’ one of these payments, the company could take legal action.
The range of financial circumstances facing British consumers is vast and varied. Even as a relatively small piece of the wider credit puzzle, an unauthorised overdraft can have serious implications on your personal finances. If you are feeling the pressure of mounting debt of any type, it’s important to get specialist debt advice to help you find the solution best suited to your circumstances. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. Their dedicated team of debt advisors can help you with all aspects of your debt problem and assist you in finding the right solution. Visit their website and try the free Harrington Brooks debt wizard for a quick and easy insight into the debt solution that’s best for you.
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January 20th, 2010
An ever popular New Year’s resolution is to get ourselves into shape. Perhaps more worrying than our own festive overindulgence though, is the workout that we have given our flexible friends during the season of goodwill. In fact, for the vast majority of us, the leanest thing about us this January will be our bank account. Sadly though, the opposite can often be said of the outstanding balances on our credit and store cards, which have gorged to bursting and are in need of a strict spell of forbearance. So tempting then, to take advantage of the enticingly low rates of interest that are encouraging us to transfer that big, fat credit card balance onto another card. That tempting 0% deal promises to give you valuable breathing space to trim down the debt – but is it the best option?
In the wake of last year’s festive overspending, more than £7bn worth of credit card debt was transferred between cards as customers searched for a better deal. Transferring your balance for free, in order to take advantage of a lower rate of interest, can help you to solve your mounting debt problem. The rates that are being offered by credit card companies are also a lot cheaper than they were this time last year. So, if you shop around, you can get a good deal. You have to be extremely cautious though. Whenever you are dealing with debt, there are risks and the advertised rates on offer may not tell the whole story. There is always small print.
A lot of attractive balance transfer offers come with a sting in the tail. For example, some will charge interest at a higher rate on any new spending; only giving you the advertised rate on the switched balance. So, you could get 0% on your transferred balance for the introductory period but any new debt will build up interest at an extremely high rate. Also, it’s important that you have either paid off your outstanding debt or you remember to transfer your balance again once the interest-free period runs out. You stand to be hit with a high rate of interest on the remaining balance if you don’t.
There are other debt solutions out there though. If you’re committed to getting your finances in shape and freeing yourself from the burden of bad debt, talk to a specialist debt advisor. Harrington Brooks are one of the longest established and most trusted financial institutions in the UK. Their dedicated team of debt advisors are on hand to help you find the solution that best suits your circumstances. Visit their website and try the free Harrington Brooks debt wizard for a fast and free answer to your debt problem.
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January 19th, 2010
UK bookshop chain Borders has recently gone into administration, which is putting over a thousand jobs at risk over the festive season. When discussions of a possible sale fell apart, an administrator was brought in to keep the stores open while a buyer was sought. As in much the same way as with an individual bankruptcy, someone is brought in to oversee the sale of assets in an effort to meet the debt repayment. In the case of Borders, the assets they have are store premises and stock. The difficult situation that is inherent to the sale of a bookshop’s stock is the likely opposition to a firesale by publishers who will make every effort to prevent having their stock liquidated. This is due to the model of sale-or-return on which most of the book trade is based.
Borders was originally founded in the founded in the US in 1971 by the Borders brothers. Borders UK was established in 2007 and has 45 stores, nine of which trade under the name of ‘Books etc.’ however, they have struggled to compete against online and supermarket sales. In fact, in the year ending February 2008, they recorded a loss of £13.5 million. If you compare this scenario to that which would affect an individual facing insolvency, the options open to the individual are far greater. At various stages of your ever worsening financial situation, there would be opportunities to seek out debt help that could halt the threat of impending bankruptcy. There are various alternatives, providing you act quickly enough to capitalise on them. If only Borders UK could’ve opted for an IVA. The Individual Voluntary Arrangement has saved thousands of people from bankruptcy, letting them keep their homes and other assets. Obviously, it’s not an option for Borders though.
Their stores will stay open while the administrators look over the books, no pun intended. Their aim is to find a buyer for the entire company but failing that, its constituent parts. HMV, owner of Waterstone’s, is a potential buyer but WH Smith has withdrawn their interest after being involved in preliminary negotiations. If you’re facing the threat of mounting debt, selling off some of your assets, perhaps downsizing your home or simply cutting down on expenditure can help to fend off insolvency. The first step though, should always be to seek out professional debt help from a specialist debt advisor. Take the free, fifteen second Debt Wizard at Harrington Brooks and find out the best solution to your debt problem.
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January 15th, 2010
The Citizens Advice Bureau has reported that the number of people who have come to them for debt help has shot up over the past year. In fact, there was an increase of over 20% in the number of people who approached the service between July and September when compared to the same period last year. In those three months alone, they received 573,000 inquiries from individuals who were caught up in the spiral of mounting debt. It may not come as a surprise, due to the extent of the financial strife that has swept Britain over the “Credit Crunch” years but debt is now by far the most popular issue with service users. Since the recession started in earnest, around April of last year, they’ve dealt with over 3 million people’s debt problems.
It is essential to seek out debt help from a specialist as soon as you find yourself facing the pressure of mounting debt. The more quickly you react, the more debt solutions will be open to you. Also, the less severe these solutions will be. A popular area for debt help is advice on the best way to avoid bankruptcy. The implications of bankruptcy are serious and can include things like the loss of your home or other valuable assets. There are alternatives though. As everyone’s financial circumstances are different, there isn’t a one size fits all response to debt. The key benefit of specialist debt advice is a solution that’s tailored to suit your situation. As one of the longest established and most trusted financial institutions in the UK, Harrington Brooks are experts in the field.
If you are concerned about which is the right debt solution for you, there are few people who share Harrington Brooks extensive knowledge of the market. A quick visit to their website will let allow you to use their free Debt Wizard and in 15 seconds you’ll have a solution that is tailored to your specific debt problem. There is also detailed information on the different avenues that are open to you; whether it’s a debt management plan, a debt consolidation loan, an Individual Voluntary Arrangement or support with bankruptcy proceedings.
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