www.iva.co.uk

[8D]
One thing during the credit crunch that i predict will be STOPPED!!!
Is the Personal Debt CONSOLIDATION LOAN!!!

If the Banks are now going down that route or are asking the Government to Bail Them Out, What Chance is there for the Rest of the population in the UK.

How many millions of people are living on debt and are now having there credit tap turned off!!!
eg No more transferring balances to cheaper rate cards etc.
Turned down for CONSOLIDATION LOANS!!!.

Next Year will be a great year for the Debt Management Business
as the Banks can't help you so it has now come to the time when we all have to start paying back all that we have borrowed.

Andrew, this must mean the amount of IVA's BR abd the like will rise. Just hope it doesn't mean lots of new,"cowboy" debt management companies popping up to take advantage of folk in debt

xx

I am so glad we refused the last consolidation loan Lloyds TSB offered us,as it would have been like continuing to keep the head buried in the sand. We had 2 previous consolidation loans from them and it just didnt work for us coz we were stupid and used the credit cards after paying them off with loans,not in a lavish way,but the debts just built up.Had we taken the loan they were also going to do a remortgage to release equity so our mortgagae payments would have gone up too.
It was anger that they were throwing money at us when we had gone into the bank asking for help reducing our debt,that drove us to go into the CAB and boy am I glad that we went.

i am so glad that a lot of us on here have faced our demons stooped burying our heads and got sorted! like you say if the credit tap is being turned off how many more thousands will be having sleepless nights over the next few months, my heart goes out to them, the worry of it all not knwing which way to turn is frightening. i never want to be in that position again!

barb x

Me neither. When I think back to how things were this time last year, it makes me shudder.

Thank g-d the consolidation loan will under todays climate be virtually dead. I was never a real fan of same. Get the most appropriate advice depending on your circumsatnces from an expert. The initial advice should always be free.

I think people are been too harsh on the consolidatory loan....for one thing the acceptance of the loan helps to preserve the 'credit rating' and might strengthen the credit file as you could proof settlement of it.As a tool to reduce debt it might not write of debts but to be blunt if you borrowed xx pounds then you should pay back xx pounds?? Even the Banks are not getting a penny written off by the government helping out on their indebtedness. They will repay the interest and return ever penny in five years or longer.

There are countries in other parts of the world that will not write off debts in a 'lite' bankruptcy proceeding like IVA...you just go complete bankrupt and be ruined and stigmatised for years.

And how many of us have the consolidation loans, pay stuff off and then run them all up again? Quite a few people on here, myself included.

With people who are already struggling to make payments, this may seem like a lifeline, but I,personally, think it is one destined to break and leave you worse off.

I've still got almost 6 years to go with my 'consolidation' loan, and I still managed to end up in an IVA.

I don't like being in this position, would far rather pay all my debt back, but that's not likely to happen unless I win the lottery.

I'm not bothered about my credit rating, this has taught me a lesson and I won't be having credit again.

I think that saying someone is 'ruined and stigmatised for years' is a bit harsh, and may put someone off BR when it's the only option open to them.

I think the stigma of BR is nowhere near as bad as it was in the past, and along with an IVA or DMP (whichever is the right option), it can give someone the chance to start again.

I don't think of an iva as 'lite' bankruptcy at all. It is bloomin hard work and don't forget that a lot of insolvent people are in that situation through no fault of their own eg. job loss or illness.

Also i don't agree that bankruptcy 'ruins and stigmatises' you for years. For some people it is the only option available to them and its a bit alarmist to describe it in that fashion as could put people off.

Agree with Skippy (Hello[:D]) that dbet solutions give people a fresh start and are not an easy option for most

I was in a bit of a hurry when I wrote my reply this morning, so hadn't really spotted the bottom bit.

Bankruptcy is no longer the stigma it was, as you say Skip, you can be discharged within 12 months and totally clear in 3 years - much quicker than the so called 'lite' bankruptcy suggested by 60folly (IVA). They both stay on your credit record for six years.