Banks and building societies were writing off almost £40m per day in family debts in the second quarter of the year, according to new figures.
A report from the Bank of England found that lenders wrote off as much as £3.5bn of debt between April and June, equivalent to £38.5million per day, the largest amount on record for a single quarter.
Credit card debts accounted for the largest proportion of that figure, with lenders writing-off £2.1bn of debt that they do not expect to see repaid. £1.2bn of the figure was attributed to overdrafts, personal loans and hire purchases whilst just £184m were written-off mortgage debts.
“In a recession, it is inevitable there will be write-offs as a result of people`s financial circumstances changing,” said a spokesman for the British Bankers` Association.
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Filing for Chapter 7 or 13 bankruptcy has gotten more expensive since changes in the nation’s bankruptcy laws took effect in 2005. A new study found that people who file bankruptcy face a 55 percent increase in costs since bankruptcy reform.
Bankruptcy Fees for Attorney and Other Services
The study–published in the American Bankruptcy Institute Law Review–was done by Lois R. Lupica, a New York bankruptcy attorney, and Thomson & Knight LLP, and examined data from consumer bankruptcy cases in six states. The costs to consumers was for fees and expenses related to an attorney, the trustee, filing, credit counseling and debtor education, and other professional fees. The m
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Ewww! You might think. Dumpster diving? Climbing into a big box full of people’s trash is not for everyone, but that’s not what dumpster divers really do anyway. By using some common sense and keeping your wits about you, you’ll find used but useful items, some of which may even be valuable. It’s an environmentally sustainable practice that saves money and reduces landfill waste. Here are some tips for embarking on your treasure hunt:
Getting Over the “Ick” Factor
Yes, it is gross to throw yourself into an oversized trashcan. That’s wh
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According to research, `the bank of Mum and Dad` is now calling in its debts – as parents ask for larger amounts of money back from their children, The Telegraph reports.
The findings revealed that one in 10 grown-up children either gave or lent, on average, 8,250 to their parents last year. This figure is 1,750 higher than it was in 2008.
More than one third of parents admitted to using the money they received from their children to repay their own debts, while a similar amount used the money to cover their everyday expenses.
A spokesperson for Debt Advisers Direct commented: “We would advise anyone struggling to afford their day-to-day living costs and/or their debt repayments after the recession to seek professional debt advice. Read more…
Debt settlement is like any type of debt management, there are pros and cons. A lot of consumers find that the pros far outweigh the cons and proceed with debt settlement. While debt settlement is not for everyone, it does work quite well for those that proceed. Despite its many successes, you should be aware of the pros and the cons before you decide that debt settlement is the right option for you.
The Pros of Debt Settlement
1. Debt settlement often allows for debt to be repaid within three years. 2. You’ll be able to build your credit back up in less time than you might have thought. 3. Your accounts may be brought to current status to instantly raise your credit score. 4
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