Debt Solutions

coolcait

Well, although I do agree with most of the comments made about the debt solutions guide, I don't think that there's any real significance in the fact that no one from MSE has responded as yet.


I've seen many, many threads of this type, and it seems that MSE tend to let the thread run for a while, garner a variety of opinions, and then post a 'Thanks everyone who responded' message.


I don't have a problem with that, as it allows 'us' - the forum members - to throw ideas around (OK, so far on this thread, the ideas are very similar!) without being distracted or sidetracked by MSE intervention.


For me, the 'proof is in the pudding' moments has far less to do with MSE management thanking every post (irrelevant, IMO) and far more to do with any changes they make, based on forum members' comments.

longtermplanner

Indeed. MSE have started the thread, it's fair to sit back and wait for a range of opinions!

Let's come back to the specifics of the Debt Solutions page.

My first thought was that it needed some tidying up and updating. Quite a bit of the stuff is simply wrong (not just the bankruptcy info. "need debts over 20k for an IVA"! that was never, ever correct... This however could be corrected failry simply.

More worrying though are:
- the ommissions eg why is there no mention of running your own DMP?
- no mention of income maximisation or reducing expenditure?
- the overly simplistic "I have less then £5000 debt, I have less than £15,000 debt" approach
- the definition of a debt crisis "Your debts (excluding your mortgage) are bigger than a year’s income after tax." That is not helpful at all, plenty of people with larger debts can snowball and plenty of people with much lower debts can't make minimum payments.

The more I look at this, the harder it is going to be to get into decent shape.

TheGardener

I haven't read it all but agree with some of the comments already made. If anyone feels the document is beyond the 'bit flabby' and more a case of 'misleading information' then they could of course hit the 'report' button and suggest that the info is potentially misleading and may at best damage MSE's reputation ... and at worst lead to someone making a very poor decision based on inaccurate information from a trusted source...
It certainly seems to have been put together by someone with fairly large gaps in their knowledge...

philnicandevan

TheGardener wrote: »

I haven't read it all but agree with some of the comments already made. If anyone feels the document is beyond the 'bit flabby' and more a case of 'misleading information' then they could of course hit the 'report' button and suggest that the info is potentially misleading and may at best damage MSE's reputation ... and at worst lead to someone making a very poor decision based on inaccurate information from a trusted source...
It certainly seems to have been put together by someone with fairly large gaps in their knowledge...

this has been suggested (and done) before in the past sadly with zero results again.:mad:

fermi

Must admit that I'm a bit saddened that MSE thought that article OK to put up.

I'll come back to it with specific points in a few days....

fatbelly

Just had a look at the DRO section. It could be better but the only thing I saw that was misleading was

You’ll have to pay a fee of £90 to apply for a DRO, which can be paid in cash at a Payzone outlet over a six-month period.

Most people pay at the Post Office. (Considering our local Payzone is in the off-licence you'll understand why I don't encourage my clients to wander in there with their DRO cash in hand) and the six-month limit is not enforced.

I wasn't aware of the £15 charge to get 'composition' on an admin order but as I haven't done one since DROs came in I am a bit rusty on them. Didn't used to exist though. Are they getting confused with: At the end of the AO, you can ask the court for a certificate of satisfaction which costs £15.

dancingfairy

The first thing I don't like is that it says you are in debt crisis if you can't pay all your monthly bills. A lot of people may struggle to pay some but can pay others so might not think they are in debt crisis. You also made the point about owing more than 1 years income. I think a lot of people will be struggling before they hit this point yet they may not feel they are 'in debt crisis' or that they can use one of the debt solutions.
I don't like the fact that you say that you will have to pay fees for the IVA yet then go on to mention that actually you don't have to stump up the cash for them. I think the mention of the fees first will put some people off and they won't read the further information.
Bankruptcy, my understanding was that you were unable to pay your debts as they become due, not that your assets were worth less that you owe?
The wording on IVAs that says your current multiple debt repayments will be combined into one makes it sound like you will still end up paying the same amount each month rather than what your circumstances dictate.
There is no category for people 15k -20k and the amounts seem to be arbitrary. There seems to be no flexibility and it feels like you are trying to come up with a one-size fits all.
The guide is o.k but could do with a lot of work.
df

JCS1

I'm really surprised (and somewhat disappointed) that nearly two months later there has been no comment from MSE.

Former_MSE_Andrea

Hi everyone!

The Edi team covers a lot of guides and may have missed these comments. I'll ask them. Can you let me know the date and time you PM'd Amy?

Thanks for flagging on the Site Feedback board JCS1

Andrea

MSE_Amy

Thanks for the feedback, have taken some of the comments on board and will continue to work on the guide to make sure it's accurate and up to date.

Thanks

Amy