Where do our debt problems really lie???

System

Good points again ZD, and you should be congratulated for standing up to them on your ow, but unfortunately, like nearlyrich says, we have all got into debt for one reason or another and a lot of people are not aware of the rules. Knowledge is Power. But one thing that it will do to most people is it will encase them in a shell. And the stigma that is attached to DCAs and Baliffs frigthens them half to death. There are proper procedures to follow and in some cases, I think of SOME of them do not follow these procedures - tar and brush spring to mind if you get my drift.

GettingThingsDone

nearlyrich is spot on. from the lender's point of view it is best if you borrow as much as you can afford the minimum payments on i.e subtract the base rate (minus a bit) from the %age that you pay on your debt and there's usually a nice bit of profit in there. obviously they've got their overheads...

of course it is our responsibility to look after financial affairs - and i acknowledge that the problem can be solved by a combination of education and experience, which is why this site and whatsthecost.co.uk are soooo good.

the question is zd, does your approach work or are you just 'lucky'? maybe in the alphabetical scheme of things they haven't got to dealing with 'z' yet? (jokin)

System

How many people have significant non mortgage debt in this country? I think its a lot. So I take solace from the fact that I am not the only one.

SarahNeedle1872

Zulu_Dawn wrote: »

I agree with this in so far as I beleive it is totally legitimate for us to take advantage of the best interest rates, free offers, BOGOF and all other bits and pieces the use to try and entice us into borrowing more than we can really afford.

However I do not accept the highly confrontational approach often recommended on this forum. Confrontation is not 'recommended' on this forum at all!

I have debts with DCAs. There is a very long thread on this forum relating to RMA Resolve. I dealt with them in one phone call following submission of a reasonable SOA and a fair offer.

I have debts with MBNA. They are hard to deal with but I was able to get interest frozen on £22k of debt for 12 months in exchange for paying them a monthly sum that was less than the interest they were previously charging me.

I hear stories of DCAs phoning people 10 times per day. I suspect this is simply because you don't pick up the phone on the first call. Is it acceptable for the DCA to phone 10/15 times per day, and threaten people down the phone that if they don't pay £x by x time, they will go to court/have their house repossesed!?! Is it acceptable that the DCAs call people at work? Is it acceptable that DCAs call and call despite having a written request to conduct all communication in letter form?

I hear people being advised not to give out their phone numbers. I don't deny that everytime my phone rings my heart sinks, but the fact is I need to communicate with these guys to keep them off my backs and the phone is the most immediate way. I always back up significant calls with letters and always get back to my creditors as soon as I possibly can. I also keep them fully informed. The majority of the people here DO communicate with the DCAs.

My concern is that newbies reading some of the horror stories here can end up terrified. There is somebody posting currently who is considering bankruptcy despite having substantial savings. This is scary.

I am just trying to point out that when you find yourself in the unfortunate situation of not being able to pay your debts, it does not need to end up in confrontation. Communicate, be firm but fair. All "they" want is to make as much money as possible. They don't want confrontation and nastiness. By understanding this, by learning the best way to deal with your problem, your situation can be far better managed and the outcome far better for all parties. A lot of the time, the DCA start the 'confrontation and nastiness' themselves by sending threatening letters and phonecalls. I have lost count of the number of times that people have posted worries on here about DCAs contacting them at work, or phoning 15 times per day, or bombarding them with letters threatening everything from court procedings to property repossesion.


ZD

I understand that all the DCAs are trying to do is their job, which is to recover money, but the way some of them carry out these duties is wholy unethical. They would find it much easier if they were less aggressive from the outset. 99.9% of people want to repay their debts, and as quickly as possible. It is a very stressful situation to be in, and constant threats from DCAs only adds to that stress.
Having said that, we have been very fortunate that the only time we had to deal with a DCA (Thames Credit), OH's 'case worker' was incredible helpful, negotiated us a good reduction in the debt and helped set up a payment plan that was agreeable to both parties.

You simply can judge people situations, as they are all individual to that person. This board is about advising people of the truth, and if that means telling them that DCAs can be bullies etc, then thats what we will tell them.

As for OP..... I got myself into this debt by a)spending more than I could afford and b) helping OH pay his debts, because he was spending more than he could afford - Common theme for us!
A lot of us are here for that reason alone BUT there are a lot of people here who got into debt due to relationship break-ups, long term sickness or loss of employment, and just trying to survive month to month feeding/housing their families, never mind buying luxuries.
Our situations are all individual, but what brings us all together is the fact that we are all trying to deal with our debts, and the reasons that caused them, and most impotantly, that we are all here to support/advise/comfort each other in our time of need.

giftbouquets

I agree ZD that we all have to take personal responsibility for our debt. Part of the problem though, at least for me, is that the financial systems that we use now make you feel as if it's not really money you are spending. Before the introduction of switch payments I thought long and hard before handing over my hard earned cash. With plastic it is just so easy. The cycle of debt consolidation is encouraged and leads to a spiral that easily gets out of control. Personally my LBM came as I walked out of the bank after arranging a further advance on my mortgage to pay off debts. I had gone into the bank with the figure I needed calculated intending to 'sort myself out'. Somehow, and in a very friendly and reasuring way, I had been 'persuaded' to borrow an extra £5,000 to have 'just in case' it was needed. After finding this site and realising there was another way out of the mess I had got myself into I cancelled the further advance. Yes, we borrowed the money and it is our responsibility to ensure we pay it back as agreed. The banks should also take a responsible approach and avoid lending us more than we can afford to repay.

Zulu_Dawn

Is it acceptable for the DCA to phone 10/15 times per day, and threaten people down the phone that if they don't pay £x by x time, they will go to court/have their house repossesed!?!



What would you do if you wanted to get hold of somebody and they weren't responding. In a work situation, I have tried people once an hour if I think they are there and I need to speak to them. I wouldn't always leave a message and I would stop once I had spoken to them.

If a DCA phones me, we have a conversation and agree a position, I would be irritated if they phoned again that day. I would clarify to them our previous conversation and ask if they need anything further, A third call would then result in my escalating the call to their manager or other appropriate customer service outlet.

The fact is that if we do not pay we could end up in court or in certain circumstances being reposessed etc. The word thrreat is emotive but any reading of a default notice would clarify exactly what avenues ar eopen to the DCA.

What we should be doing here is pointing out what opportunties are available, making people aware of the potential outcomes and advising them of the best way to avoid the worst of them.

When I got my first default notice, the blow was substantially lessened by a decent creditor explaining to me that this was merely a step in the process and that be being defualted, it enable them to freeze interest and negotiate outside the standard credit card terms. That's the type of message I want to pass on.

I totally accept there are bad apples in any profession and it is our responsibility here if we come up against them to report them.

ZD

newleaf

Personally, I have never blamed anyone but myself for my debts - which were built up by me, spending money I couldn't afford to spend. Now it's payback time, and oh, how it hurts!
But I do think the fault lies in the way we're brought up in the dark about financial matters.
Credit is seen as an easy and socially acceptable way to have everything we want, and have it now. Everybody does it. We have turned into a 'must have it now society'.
Credit is even encouraged by the Government for heaven's sake. We encourage our young people to go to University, funding themselves for 3 or more years with massive amounts of credit, to get degrees which for many will ultimately prove useless due to shortage of employment opportunities. (I know many graduates who are working in retail on minimum wage, - but try finding a plumber in an emergency!) For many, repayment of student loans will never happen.
We have a false impression of our relationship with our Bank. We grow up believing they are there to 'help' us. Even my elderly mum, who's never owed anyone a penny in her life believes this. They aren't, they are there to make money and they will wring it out of us by any means they can think of.
Our culture has changed. People need to be educated about money, and quickly, otherwise we're doomed. It needs to be discussed both at home and at school. And in my opinion, credit needs to be much harder to get, this 'live now, pay later' society is not sustainable.

Toto

How about the people who are too vulnerable to deal with DCAs over the phone, so request all contact in writing? How about the people who agree re-payments over the phone but the DCA then ignore the agreement, continue to harass via 20+ calls a day.

I asked all of my DCAs to deal only in writing, I frankly got sick to death of having to repeat myself 5 or 6 times to people because no one had bothered to note my previous conversations. I never had the courtesy of written correspondence despite my repeated requests in writing.

You sound as if you are quite a strong lady which is wonderful. But many many people aren't. Some suffer depression, some have had to live through losing a partner through death or divorce. Others have been bullied out of their jobs, I could go on and on. These people aren't able to communicate with the DCAs and rather than the DCAs approach people in a kind, friendly, non-judgemental way (which probably would get a much greater response) they go in all guns blazing, bully boy threats and push people further and further into a corner.

Zulu_Dawn

Toto wrote: »

You sound as if you are quite a strong lady which is wonderful.

You couldn't be further from the truth!!

ZTD

Zulu_Dawn wrote: »

I totally accept there are bad apples in any profession and it is our responsibility here if we come up against them to report them.

And what happens? Nothing. The watchdogs should be called "Watch Hens" because they have no teeth.

And the bad apples know this.