Wednesday, Jun 28, 2006

Profits soar by 177% at Debt Free Direct as personal debt problem mount

TimesOnline: Borrowers in trouble boost Debt Free Direct

Debt Free Direct said pre-tax profits have ballooned to 5.13 million in the year to April and said it expected a fivefold increase in individual voluntary arrangements (IVAs) in Britain over the next three years.
There are at least one million overstretched borrowers in Britain and the number is growing rapidly, despite comparatively benign economic conditions with low interest rates and high employment.

Posted by denzil @ 09:33 AM (737 views)
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8 Comments

1. Ilejustwait said...

It appears that lenders want people to get into debt, based on money borrowed against their property, and when it all go wrong they can just force them to sell there home and collect, no risk to them, but as for the family who once had a home what have they lost, ? ( everything ), need i say more ,

Wednesday, June 28, 2006 12:56PM Report Comment
 

2. bidin'matime said...

Well, they say it's an ill wind... Not for the first time I find myself (sort of) wishing I'd become an insolvency specialist...

Wednesday, June 28, 2006 01:32PM Report Comment
 

3. Click said...

It appears that lenders want people to get into debt, based on money borrowed against their property, and when it all go wrong they can just force them to sell there home and collect, no risk to them, but as for the family who once had a home what have they lost, ? ( everything ), need i say more ,

Wednesday, June 28, 2006 01:58PM Report Comment
 

4. inbreda said...

I have shares in debt free direct as well as debt matters. If an STR ever turns around and said they sold their house and ploughed the proceeds into either of these companies, it would be very hard to argue he did the wrong thing!! These two companies have earnt me a lot more over the last couple of years than any property would have. Glad to see the outlook is improving!

Worth noting that they have a vested interest in overstating the expected number of IVAs in the future, but nice at last to have a VI to start balancing out the masses of VI spin on the other side of the fence.

Wednesday, June 28, 2006 02:16PM Report Comment
 

5. talking rot said...

Inbreda

What does the acronym STR stand for, please?

Wednesday, June 28, 2006 08:17PM Report Comment
 

6. Autopilotengage said...

Rot, it's "sell to rent". I'm very encouraged by that Morgan Stanley article today. Just keeping involved, wouldn't want you to think it had all gone quiet again ;-)

Wednesday, June 28, 2006 09:14PM Report Comment
 

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