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The
consolidation loans we deal with can be for brining
all of your loans, credit cards, store debts and arrears
together and exchanging them all for one affordable
monthly payment. This will also mean you will not
have to spend ages every month trying to get your
earnings distributed around your creditors without
upsetting them!
If
you feel that you need to manage your debts better,
without a loan to consolidate your payments into one
affordable reduced payment, we have the answer for
you. Click
Here.
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What Action to Take With a Threatening or Harassing Creditor
The Consumer Credit Licensing Bureau (a government department with
teeth) deals with consumer credit licensing matters. All company’s
that supply credit to consumers (not companies) must have a licence.
The licence is the ‘life blood’ of any lender, retailer etc. The
bureau will take effective action against those who do not act
within the rules: if they are informed. All moneylenders must have a
licence.
If a creditor is threatening you, you can either write to the
licence bureau, or in a bodily harm threat, contact the police. If a
creditor knocks on your door every week, or telephones you
constantly at work, at night, and you ask them not to: they are
harassing you. The creditor must take legal action or write off the
debt.
Facing up to Debts and
Creditors
An alcoholic has to face up to reality, take stock of
their situation, and then take one day at a time. Debt
problems are very similar. You have to admit (if only to
yourself) that you have commitments beyond your control.
You have to face up to the reality that they will not go
away. You need to take stock of your entire financial
position, and finally you have to deal with it: not ‘one
day at a time’, but, just deal with it!
The first thing you need to do is to prepare an ‘Income
and Expenditure’ form. By working out what you have to
spread over your creditors (however thin) you can begin
to control your finances and future.
Creditors do not need to
accept your proposal. Some may agree to, say, a three or
six month arrangement, then review. Others will accept
easily, and a small number may refuse (with the latter,
you need to plainly express that you offer something for
everyone, or nothing for all).
Answer creditors letters promptly; be open and fair;
never be bullied or bullish. As a debtor you will get
intimidating letters and telephone calls, they will
‘want this now, and ‘that by then’ or ‘we will do that’.
Creditors believe that ‘the louder you shout (at
debtors), the more you will get paid’ (and it works). By
showing your creditors that you are in control of your
debts and your future, you will stop them shouting and
get them to start listening! Completing an Income and
Expenditure Statement
An Income and Expenditure Statement is similar to the
form you probably completed to get the very debts we all
face today. The purpose of the form is twofold:
a) For you to calculate how much money you need to live
on.
b) To indicate how much money you can set aside for your
creditors.
The form has four parts:
1. Income
Your total income (including any spouse). The statement
can be a joint proposal for a couple.
2. Living Costs
Every expense, but excluding any debts i.e. your weekly
rent would go in this part, but not any arrears. A
monthly hire purchase payment is not a living expense;
the whole balance is a debt.
3. Priority Debts
Gas, Electric and Water Rates. Rent Arrears.
Maintenance (ex-partner and children)
Court Fines. Vat and Income Tax. National
Insurance. Television Licence
4. Non-priority Debts
Every other debt not included in part 3 is a
non-priority debt (whatever the creditor may tell you).
Some guides to completing the statement are: Use monthly
or weekly figures throughout the statement. Do not mix
the two.
Housekeeping:
A couple £70 per week, single person £40, each child
£25.
Quarterly Bills:
Add together your last 4 bills (being, one year) then
divide by 52 if you are using weekly figures, or divide
by 12 if you are using monthly figures.
Clothing:
A contentious figure of £5 per week is the maximum
amount your creditors are likely to agree to (your
creditors expect you to ‘pull in the purse strings’).
Telephone:
Having a telephone for a reason other than health or
work will not please some of your creditors (unless they
use the telephone to contact you at 9 p.m.). You must
keep this figure low and relevant to your current
position.
Finally, do not underestimate your living costs or lose
sight of this opportunity. Having to immediately reduce
the amount of money paid to your creditors will not
leave you any room for manoeuvre at a later date, and
may well lead to some creditors taking legal action. The
first few months of any arrangement are crucial in
determining your creditors support: you have been
warned! |
