Comments on: Successful Debt Management Plans are now in the tax payers interest.

By: Making a living

Making a living — Wed, 14 Jan 2009 10:55:08 +0000

What we need to remember is a properly managed debt management scheme is the only way forward for a vast majority of the UK public. Over the last ten years much of the British public have ran up record levels of unsecured debt with many relying on the increase in property values to bail them out of trouble every 2 – 3 years with a debt consolidation secured loan or re-mortgage, many of these clients have borrowed up to 90% – 95% of there property value with some lenders even offering 125% LTV consolidation loans at the high of the credit/property boom.

These borrowers will now find it very difficult to find a new mortgage deal and will typically still have around £25,000.00 of unsecured debt. Moving forward the UK public must stop using their homes as cash cows to fund flash cars and expensive holidays and start reducing mortgage debt, their mortgage payments should and must be there number one priority.

With the increased mortgage debt and reducing incomes many will now only be able to prioritize their mortgage payment and essential living costs and will not be able to pay back unsecured debt at the contractual payment.

Because of this the UK public needs guidance on how to repay their debts and in my eyes a debt management plan is a better alternative to an IVA or bankruptcy or even worse case scenario loosing their home.

We all need to work together to reduce the UK indebtedness and if these means that some organisation or individuals make a living from doing this, is this such a bad thing?

By: Ex Mortgage Adviser

Ex Mortgage Adviser — Wed, 14 Jan 2009 10:25:54 +0000

we all have to make a living somehow, charging a fee for a service is nothing new especially if that service such as debt management can save someone’s home etc. Having dealt with the CAB and other Government organizations in the past I know that the consumer has a choice, either let CAB (with the best will in the world)take their time over matters but ultimately provide nothing more than guidance, or employ a professional to ensure the job is done properly in a reasonable period of time. You wouldn’t necessarily fit your own double glazed windows or take a punt on what might be the most suitable pension. Sometimes you have to trust in the independent advice of the relevant professional, if the CAB can’t cope with what will be a massive influx of debt related enquiries what is Joe Public expected to do?

By: Trumpo

Trumpo — Wed, 14 Jan 2009 09:59:26 +0000

Sorry, I forgot to add, with the CAB, any structured plan has to be administered by the person who got themsleves into trouble in the first place – so the failure rates due to poor administration (i.e. 1 person)very high.

Hence professional administration best chance of recovery.

By: Trumpo

Trumpo — Wed, 14 Jan 2009 09:56:15 +0000

I think the CAB do a great job, but for the larger indebted consumer, i.e. over £25,000 worth of debt, it needs to be professionaly handled.

Plus the CAB have not got enough staff, if the govt allocated a fraction of the bail out money given to the banks the CAB may have a fighting chance.

By: Robin Lindley

Robin Lindley — Wed, 14 Jan 2009 09:25:41 +0000

However you butter this up, its to earn commission out og joe public. Dyson hoovers, double glazing, endowments, pensions, now debt management. All the companies I have seen are charging, leave it to Citizens Advice Bureau. The public have been ripped off enough by Gordon Brown, without this con.