The authorities are getting tough with claims management companies which promise to write off debts.
Dozens of claims management companies have been closed down and thousands of people have paid money to have debts written off – with no guarantee of success.
Recently I had an email from someone about a claims management company which was promising to write off credit card debts and loans. The claims management industry has been going for decades in relation to personal accident and medical negligence, but it’s only in the last few years that it turned its attention to writing off credit card debts and loans. Some companies have taken up to £500 as an upfront fee and delivered little or nothing in return. Over the last few months the regulators have been getting tougher.
Women tend to owe less than men but worry about their debts more. How can you repay yours?
The recession has made us borrow less and pay off more of the money we owe, but the figures around debt are still pretty frightening. According to the debt charity Credit Action, each household that owes money owes an average of £21,200 on credit cards, overdrafts and personal loans. Although research shows that women owe less than men, we tend to owe money on credit and store cards - which can charge high rates of interest - which means we end up paying more. We also tend to worry about our debts more than men do.
If you owe money and you’re trying to pay it off, make sure you get the maximum out of every pound you pay
There are two kinds of debt – priority debt that you have to pay off first, because if you don’t the consequences could be very serious (such as mortgage, council tax and TV licence) and other debt, such as credit card and personal loans, where the lender has limited powers if you’re unable to pay. If you're struggling with priority debts, you should get help from a debt advice charity. But if you owe money on store cards, credit cards or personal loans and you can afford the payments, there are two debt repayment methods that can help you clear your debts fast.
