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libitina

New Hope For People With Credit Card Debt

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http://www.mailonsunday.co.uk/pages/dmstan...d%3D62%26ct%3D5

MORE than a million people struggling with repayments on borrowings could be freed from much of their debt under a change in the law within two years.

Also

A 'SPEND now, pay later' culture has seen a surge in the number of young women swamped by debt. Those plunged into a serious cash crisis which threatened financial ruin and bankruptcy soared by 122% in three years.

http://www.mailonsunday.co.uk/pages/dmstan...d%3D62%26ct%3D5

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Lovely idea with Gold!

Sadly as usual with the Daily Mail it is cobblers. IVAs are being drummed up now by a new "VI" - these VIs make their living (a pretty good one nowadays) advising severely indebted muppets, er "consumers" on how to reschedule or escape debt.

An IVA does not allow you to escape half your debts without all of your lender's permission! You need most of them on board. It is a route whereby those who can pay something towards the debt (and who do not want to, or for whatever livilhood based reason (co directors, lawyers accountants, IFAs etc) cannot let themselves become bankrupt). The licensed insolvency practitioner negotiates a deal on your behalf with the creditors (must be 3 or more unsecured creditors - does not affect martgage/secrued debt) whereby they write off part and accept instalments on the balance and if 75% of them vote in favour you pay them off a fixed amount for 3-5 years.

A few problems - (i) if you have a house - forget it - the creditor could always go for a charging order and wait for the house to sell. If a mortgagee they have a secured asset anyway. (ii) if you get any "windfalls" eg lottery win, inheritance gain, or gift that will go to the creditors to pay them off. (iii) a big pay rise or more disposable income? they can renegatiate a reasonable higher payment.

Finally, this might work with some outfits but Visa, MC, Barclaycard et al? No way are they going to allow everyone to do this or the whole thing breaks down to the chavs benefit yet again. They would (assuming they had 26% of your unsecured debt or more) block it given the other routes open to them.

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  • 338 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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