Two months of 'breathing space' for those in problem debt from 2021 - MSE News

MSE_Chris_D

People struggling with serious debt are to be given a grace period of 60 days before being hit with further interest, charges and enforcement action, under new rules that will come into force in 2021...

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'Two months of 'breathing space' for those in problem debt from 2021'

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Kentish_Dave

This is a terrible idea. The sort of people who’ll get this help are incredibly unlikely to use it as intended and it’ll make lenders that little bit less willing to people who had a genuine need but were marginal.

The infantilisation of society continues ever onwards, early education and feeling the full if minor consequences of a first debt problem would be far, far better than giving people another way to put off dealing with the underlying problem.

sourcrates

Kentish_Dave wrote: »

This is a terrible idea. The sort of people who’ll get this help are incredibly unlikely to use it as intended and it’ll make lenders that little bit less willing to people who had a genuine need but were marginal.

The infantilisation of society continues ever onwards, early education and feeling the full if minor consequences of a first debt problem would be far, far better than giving people another way to put off dealing with the underlying problem.

Agreed Dave, financial planning should be taught at school, but schools are busy still teaching the basics to kids whose parents didnt bother, also you cannot turn back the clock for the rest of society, taring everyone with the same brush, is a very dangerous thing to do where debt is concerned, people from all walks of life get into these situations, sometimes by there own hand, granted, sometimes due to circumstances beyond anyones control, life always throws a curve ball when you least expect it.

The idea of breathing space is so the debtor can get advice from the free debt charities, and to take a moment to steady themselves, I dont know if youve ever been in that situation, but constant phone calls and letters demanding money, can wear a person down, a lot of people simply cannot cope with the stress of it all, and they then make unworkable arrangements they cannot stick too, simply because they were under pressure at the time.

They need clear heads to form a stratagy to get out of debt once and for all, so in my own uniportant view, this can only be a good thing, we were campaigning for 6 months breathing space, but Government has decreed 2 months to be sufficiant time.

This, along with the new debt repayment program soon to be introduced, should make big inroads in helping people tackle their debt problems.

Karonher

Schools might be able to teach budgeting early on if they were not being made responsible for all sorts of other things. At Key stage 2 there is still the need to teach them how to tie shoelaces, tell the time and in some cases use a knife and fork. This is before the more personal and behaviour related issues.

By high school there may be the chance, but as all of the boys are going to play for one of the Sky big 6 and the girls will marry a footballer or win X Factor/Big Brother they don't believe there is a need to worry about money.

Clearly this does not apply to every single child/school, but having spoken to a staff from schools across the country sadly it does to many.

The infantilisation of society continues ever onwards, early education and feeling the full if minor consequences of a first debt problem would be far, far better than giving people another way to put off dealing with the underlying problem.

I agree but it will only get worse if parents don't start the financial advice. Now that it will be harder to get pay day loans I am worried about the number of elderly who will suffer when they think they are helping family members and agree to be a guarantor for them. There are already quite a few companies offering this type of loans.

Kentish_Dave

I agree with the two posts above, it’s down to parents at least as much as schools to explain budgeting, and the value of saving and having an emergency fund.

Too many government initiatives seem like looking down the wrong end of the telescope, looking only to help people when it’s already too late.

HonmaDP

Good!! Should be longer

How so many finance houses get away with irresponsible lending I will never know.

onwards&upwards

Great news. There are still far too many suicides due to debt, anything that helps people feel things aren’t hopeless is great.