Debt A Growing Uk Problem

Personal debt is an increasing problem across the United Kingdom with millions of adults affected.

According to top debt management consultancy Thomas Charles, over 8m adults each owe unsecured debts amounting to £10,000 or more.

And Scotland compared to other regions of the UK has the highest proportion of adults in debt, at almost 1 in 4.

The latest findings follow a survey commissioned by Thomas Charles and carried out by independent research agency YouGov.

The quarterly survey shows debt numbers up by nearly a third on the previous quarter. And when compared to the same period in 2006, the trend is also up, by almost the same amount.

A quarter of the 8.2m adults in debt are struggling to meet repayments, the survey figures reveal. More men have debt of £10,000 or more compared to women. But more women are likely to struggle to meet repayments than men.

Regionally, some 40% of London residents with £10,000 or more unsecured debt have problems meeting their repayments. The figure for the rest of the South is around 20%, with Wales and the Midlands 18%.

Thomas Charles & Co Ltd was set up in 2004 and operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management and focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangements (IVAs) and bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party insolvency practitioners around the UK.

Top Debt Tips

Don’t bury your head in the sand. Try working out your financial position using a budget sheet detailing all your incomings and outgoings.

Consider transferring credit card debt to a 0% card while you deal with more pressing bills, such as any council tax or mortgage payments. But don’t use this as an excuse to run up more debt elsewhere, and beware of hefty transfer fees.

Don’t take out other loans to pay off the original debt or use a consolidation loan. If you must do this, be disciplined and don’t use the new loan money for anything else.

Talk to your creditors about structuring a realistic repayment plan.
If you cannot do a repayment plan and you do not want to go bankrupt then try an IVA. Visit IVA.co.uk or call the IVA helpline (0800 197 48 38).

If you want to consider bankruptcy then try the Citizens Advice Bureau (citizensadvice.org.uk)

Debt Relief Counseling

Debt Relief Counseling is of great help if you plan to straighten your credit record and financial history. The primary objective before opting for debt relief counseling is to be committed and follow whatever instructions given to you. Your obedience will bring about positive results. When faced with a critical debt problem there is nothing like resorting to debt relief counseling. As we all know the alternative to debt is bankruptcy, and it is a tough stain that stays on for another 10 years. The negative mark on the credit report can bring a lot of hardships to you, as you will be denied for many other financial transactions. Therefore, it is advisable to consult a financial expert for counseling.

Debt relief counseling advices and guides you through debt elimination program first. Then strategies are formulated after a thorough view of your debt situation. Then the counselor will determine the objective on how to come about the problem and then configure the plan that will work best to accomplish your goals. A debt relief counseling plan can help you maintain a payment plan where you can meet your goals by paying your debt in such a way that it makes it convenient for you and at the same time make it less taxing. And you will be able to clear your debt and get back on the right track.


There are a number of agencies online that provide debt relief counseling programs to cater to your debt problems. These agencies provide professional and qualified financial experts to counsel you as per your requirements. These agencies also provides other debt solution programs too that can help in improving your credit status.

Debt management counseling is also type of a debt relief counseling program, which works only after you are finally able to pay off the debt a little each month rather than building the debt up. This helps establishing relationship with a number of banks and agencies. The counselors will work on your behalf with those people you owe money to, be willing to lower the interest rates and waive off the late fee.

The advantages of a Debt relief counseling is that it works on your behalf with your creditors and makes sure your monthly payments become more manageable. They can guarantee you a debt free life if you are committed to follow the instructions given to follow until all your debts are cleared. So you can start a new and systematic payment system in the days to follow. Debt relief counselors can reduce the high interest rates charged by creditors. They can also eliminate late fees depending on the conditions, therefore this way more of your money goes towards reducing your debts.

With the increase debt problems so also there is an increase in frauds, they claim to deal in debt solution programs, etc. Be aware, and make sure you are selecting the right agency that provides you with quality Debt relief counseling. Do not make hasty decisions and make sure you do a thorough research on the companies you are selecting. Click on the link below to get debt relief counseling today.

Protecting You, The Consumer

The Fair Debt Collection Practices Act (FDCPA) was established to protect the consumer from harassing and illegal tactics used by unethical and unscrupulous debt collectors. The act does not apply to the original creditor but does apply to someone other than the original creditor who tries to collect on the debt.

Here are the basics of that act and how they affect you from the Federal Trade Commission (FTC).

Debtors, Collectors, and Charge Off

If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a "debtor." If you fall behind in repaying your creditors, or an error is made on your accounts, you may be contacted by a "debt collector." You should be aware that FDCPA requires that debt collectors treat you fairly and prohibits certain methods of debt collection. Of course, the law does not erase any legitimate debt you owe.

When a debt is ”written off” or “charged off” by an original creditor, the action is nothing more that an accounting action. It means that the debt will be forgotten by the creditor or more likely, sold to a third party. But the debt is still very collectable if within the state statue of limitations.

Who is considered a debt collector?

A debt collector is any person who regularly collects debts owed to others. This includes attorneys who collect debts on a regular basis. It may include departments of a company specifically set up for this purpose.

A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts.

Can you stop a debt collector from contacting you?

You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. The debt collector or your original creditor (if the debt is not sold) could still sue you.

If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney and you have not sent the creditor a cease contact notice, a collector may contact other people. But the agency can only make contact to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

A collector may not contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What must the debt collector tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

What debt collection practices are prohibited?

A debt collector is prohibited from any of the following:

Harassment - Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, debt collectors may not: use threats of violence or harm; publish a list of consumers who refuse to pay their debts (except to a credit bureau) use obscene or profane language; or repeatedly use the telephone to annoy someone.

False statements - Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not: falsely imply that they are attorneys or government representatives; falsely imply that you have committed a crime; falsely represent that they operate or work for a credit bureau; misrepresent the amount of your debt; indicate that papers being sent to you are legal forms when they are not; or indicate that papers being sent to you are not legal forms when they are. Debt collectors also may not state:


1. You will be arrested if you do not pay your debt
2. They will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so
3. Actions, such as a lawsuit, will be taken against you, when such action legally may not be taken, or when they do not intend to take such action.

False Information - Debt collectors may not: give false credit information about you to anyone, including a credit bureau; send you anything that looks like an official document from a court or government agency when it is not; or use a false name.

Unfair practices - Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not: collect any amount greater than your debt, unless your state law permits such a charge; deposit a post-dated check prematurely; use deception to make you accept collect calls or pay for telegrams; take or threaten to take your property unless this can be done legally; or contact you by postcard.

Payment of Debt - If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

What can you do?

You have the right to sue a collector in a state or federal court within one year from the date the law was violated. If you win, you may recover money for the damages you suffered plus an additional amount up to $1,000. Court costs and attorney's fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector's net worth, whichever is less.

Report any problems you have with a debt collector to your state Attorney General's office. Many states have their own debt collection laws and your Attorney General's office can help you determine your rights. You should also complain to the Federal Trade Commission (FTC) online or call the Federal Trade Commission 1-877-382-4357.