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Archive for December, 2006

Debt Free Direct calls for investigation into misleading ads

Thursday, December 14th, 2006

Debt Free Direct has said that radio advertisements that claim that people with money problems can escape up to 80 per cent of their debts are ‘misleading and unethical’, reports the Guardian. The debt management company has complained to the Advertising Standards Authority (ASA) that the rival firms have flouted advertising rules by exaggerating their ability to write off debts to banks and other lenders. Debt Free Direct named several firms in its complaint dossier, including Accuma, Spectrum and W3 Debt Solutions.

The ASA is considering the dossier and the Guardian suggests that recent accusations by Shadow Chancellor George Osborne about debt dodging will put the organisation under pressure to launch a full inquiry. Mr Osborne said: ‘I am concerned that people may be being encouraged by unscrupulous IVA companies to commit to IVAs, even where this may not be the right course of action.’ He called for ‘firm action’ against companies offering ‘false or misleading advice.’

Mr Osborne added that companies counselled people on low incomes to sign individual voluntary arrangements, which harm their credit rating. Instead, they could make an informal arrangement with their creditors. IVAs are legal contracts which allow debtors to make monthly repayments following a deal to pay off a reduced amount of their debt. According to PricewaterhouseCoopers an IVA is taken up every seven minutes in the UK.

Debt Free Direct says that people are ‘morally obliged to repay their debts’, adding: ‘It is not right to help people avoid their legal liabilities.’

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Financial news, Financial products, Insolvency, IVAs, Personal debt, Spending, UK Finance, Unsecured loans | No Comments »

Making your December Pay Check Stretch

Thursday, December 14th, 2006

A great many employers pay their employees early in December. This is an attempt on the part of employers to make your life that little bit easier in the run up to Christmas when most people have a lot more expenses than usual. However, there is the obvious catch that if you get paid early, you will have to make this pay check last that much longer as you will usually have a long gap until your next pay check comes through at the end of January. Therefore make sure that when you get your early pay check in December that you are fully aware of how long this money must last you and take the steps necessary to ensure that you will not be left short in the new year.

There are a couple of simple things that you can do to make your life that little bit easier in January. For one thing, you should probably try to keep your spending under control over the festive period. Don’t let your spending get out of hand and remember that debt, just like a puppy, is not just for Christmas but for the whole year.

Another good tip for making things a little easier at the end of the year is to buy some of your gifts early. This will spread the cost of Christmas over more months and leave things feeling less tight in December. You can also consider putting a little aside in the months leading up to Christmas for use during December.

Posted in Bad Credit, Banking, Borrowing, Consumer debt, Financial news, Personal debt, Spending, UK Finance | No Comments »

The Conservatives’ New Push against Debt

Wednesday, December 13th, 2006

There is no doubt that the Conservative party of today is a new political party. At least that is the image that the party is trying to portray to voters. It is clear that they have had to reinvent themselves. One of the areas that the party has been putting a lot of attention on recently is the country’s debt problem. It appears as if the Conservatives have rightly identified debt as one of the largest and most serious issues facing the country’s young people.

One of the initiatives that the party has announced is their plan for compulsory education on personal finances for 12 to 18 year olds. This would be treated as any other examinable subject at school. The claim is that this will make young people less likely to get into unmanageable debt.

While some critics have said that the only reason the party is getting into this area is to win votes and appear like the friend of poorer and younger voters. However, debt charities are praising the policy and saying that the more attention that can be put on this subject the better.

Another thing that people have been identifying in new Tory policies is an increased interest and focus on the problems of society’s most disadvantaged areas. It could well be that the party traditionally associated with wealthy, older, white men, is becoming the party of single mothers, and indebted teenagers.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Financial news, Personal debt, Spending, UK Finance | No Comments »

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