Debt review not ready for rate hike Business Day
A FAILURE to remedy defects in the debt review system could leave it ill- prepared to cope with a wave of overindebted consumers when interest rates start rising again, warns the head of SA’s largest debt counselling agency.
Visionary but insufficient legislation and poorly trained debt counsellors without suitable IT systems are some of the problems hampering the industry created under the National Credit Act, says Ian Wason, CEO of Cape Town-based IDM Holdings.
In addition, an industry seemingly prey to corruption — Business Day revealed this month that one debt counsellor had offered parties and women for sex to regulator staff in an apparent inducement to send business his way — risks losing credibility among the very public it is set up to serve .
"There’s an increased need for debt counselling, but a very bad public perception of (the industry) at the moment is stopping people from applying," says Mr Wason, whose company owns Debtbusters, which at the end of March had an active client base of 5562 .
Free Debt Counseling -Demand The Best
www.realcase.com No matter what you use as a debt consolidation plan, taking the time to determine the best course of action for your debt is ...
any doubt counsellors or solicitors with debt experience out there?
my friend (yes,really, not me (grin)) has arranged
regular payments wh all his creditors which he makes on time - one of them in particular keeps threatening him with legal action or debt collectors or worse by saying that he's not paying enough or the payment was late (it has never been late)
i understand that this type of harrasment is illegal, can anyone confirm this and confirm the law or statute that says it is so??
many thanks.
no silly answers please - this is a serious matter.
sorry, yes, i meant debt counsellors
Hello Majic,
I am a debt counselor. The law you are referring to is the Fair Debt Collections Practices Act (FDCPA). You can read about it on the www.ftc.gov website. Put the acronym into the search argument.
There are definitely laws regarding what a creditor can and can not say. You didn't indicate whether it was the primary creditor or a 3rd party collector as the rules are a bit different. Yes, harassment is illegal but also difficult to prove. You can complain to the ftc on the same site. Violation of the law is a $1000 fine. If there are too many complaints against a specific company, the FTC (Federal Trade Commission) can close them down.
I suggest your friend read what he/she can find on the site so the next time the collector calls, his/her rights are familiar to him/her.
Collectors are trying to get your friend emotional, if they cry, the collector wins the game. This can be controlled somewhat by indicating up front that the conversation is being recorded and that the caller is aware of his/her rights under the FDCPA law.
What is the best and most cost effective "pay" service to pull customer credit reports?
We are an outsourced call center providing service support to a debt counsellor. We require a method to pull credit reports on those customers that ask for their services. We are looking for a legitimate pay service that is reliable, quick, complete and cost effective.
Hi,
I used "Credit Solution" to settle my debt and improve my credit score.They managed to reduce my debt up to 58% .It's legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://dwarfurl.com/8d4d6
I NEED DEBT ADVICE Please help me! I have debt totalling around ten thousand pounds.?
The debts include a £5000 (15.9%apr) loan (really 6700 once it is paid off) a £1500 overdraft with natwest(18%apr) house of fraser store card with £400 (29.3%apr) and a natwest creditcard with £400. I also have about £600 in little debts. I really don't know what to do I am a single mum on benefits although I have just got a job for a few evenings a week which will help but at the moment i'm living on a credit card and I don't know what to do I don't want to go down the iva or bankruptcy as that would cause more problems and I'm still young and don't want to ruin my credit score anymore than it is. I have tried to consolidate the debts but as I have a poor credit rating I can't get any decent deals and I don't want to borrow even more money than I already owe. Does anyone know of a REPUTABLE company that will give me a loan for a lower apr than the one I have already or anyother advice. I have spoken to debt counsellors but I don't class as owing enough for any real help.
I have about the same amount of debt as you and I am now with Consumer Credit Counseling Services. Basically I send them money every month and they distribute it to each of my credit cards. They were also able to lower all of my interest rates a lot. I will be debt free in about 4 years compared to probably 20 if I would have kept paying the minimum on my cards. The thing is you have to STOP using your cards to make any head way.
What specific qualifications do i need to become a debt counsellor?
I am 26, have managed my own house for 7 years and have experience of being in debt but managed to get myself out of it. The thing is whilst my debt was small and manageable really, other people get themselves into a right state and it is all too obvious to me where they are going wrong. I have been asked for help from workmates and have been able to point them in the right direction (without sounding sanctimonious) as we have all been there and I think I have a skill in this area (one of my workmates suggested it to me as a possible career) I really would like to do this as it would mean helping people and using my brain (for a change)
by the way found 1 - i can spell counsellor! have you ever had any formal education??? if so you need a refund love.
I don't think you need a qualification for this but I know to get employment from a debt counselling company or a bank you need a clean credit rating. I was an accounts assistant long time ago and cant get a job in this field because of my credit problems - they think if you cant sort out your own you cant sort other peoples, even though mine was due to divorce etc.
Has anyone ever dealt with this debt consolidation firm before?
Has anyone evr dealt with the National Credit Counsellors Of Canada Inc. before. If so has your experience been good or bad any feedback would be greatly appreciated.
Hi I have never dealt with National Credit Counsellors of Canada Inc before, but I do have some information about Debt consolidation might worth to take a look. Please check the article in my resource box.
It is always good to be aware of who we are dealing with and what we are asking for.
Good luck!
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is an online ebook :
you can read it for free at:
http://umgarticles.atspace.com/debt-consolidation.htm
Don't have enough money to consolidate debt ?
I once went to a credit counsellor but I told him that I won't be able to come up with $1000 a month. Does anyone know what else I can do because I'm drowning in the high interest credit card debt that I incured when I was not able to work?
It depends on your particular situation. If you are working, then if you can't pay your credit card bills, the card companies can pursue judgments against you and eventually garnish your wages. If you're not working, or if your only income is Social Security, etc., then you could be temporarily judgment proof - but if you begin working again, those judgments could still be effect. It depends on what state you live in, and many other factors.
Quite honestly, your best recourse at this point (if you truly cannot pay down your debt) could be bankruptcy. There is still a lot of misunderstanding out there about bankruptcy - but it is far from the financial death sentence many people believe it to be. You can buy a car shortly after BK, and yes, you will find credit card companies that will take a chance on you, and yes, you WILL be able to rebuild your credit, if you know the right places to start. You can even buy a house as soon as 2 years out of bankruptcy.
Look around the bankruptcy forum on the link I'm posting as my source - the folks there know what they're talking about, and there's a great thread pinned at the top that will help you figure out if bankruptcy might be something it's time for you to consider.
Also, the credit forum on the same website is invaluable for rebuilding your credit, regardless of the path you take in regards to your debt.
Take heart. I promise - there IS light at the end of the tunnel. :)
Need Advice on Crippling Debts?
I am 'maxed' out on two credit cards and up to overdraft limit in three bank accounts. I know I'm stupid for letting this happen, but I've got two jobs now and I'm working 16 hours a day some days, but I just can't seem to get these debts down, especially when there are bills/food/petrol & ex-wife's child support money to pay. Is there anything else I can do i.e. see a debt counsellor?
It is easy - you are spending more than you make
What do I do about my debt in divorce? Had to feed the kids somehow.?
My husband left me and the kids two years ago and I had to feed them somehow. I ran up a lot of credit card debt. I was thinking that maybe we would get back together, so I didn't initiate divorce proceedings. I just found out he has been lying to me and having an affair. I thought he had just gone away for his job, and that he still loved me - alll lies.
So I have run up all this credit card debt, feeding the kids - I haven't been extravagant at all, my clothes have holes in and I haven't had a haircut for over a year. I now find that everyone is telling me I have to divorce, it's the only thing to do. What do I do about my credit card debt in the divorce though? A credit counsellor told me not to mention it because I've got no assets at all (I was a stay at home mom throughout the marriage) and so there is no way the creditors can get back the debt. I don't like the way that is - but I don't know what to do. Should I say about this debt in the divorce? Or is it not relevant?
If it's not relevant, should I not mention it at all? I am really embarassed about it. Although I had no other option to feed the kids, I have never been in this sort of debt before - my credit rating was 780 before this all began.
I didn't file divorce partly because he threatened to file for custody, and I didn't want the kids to get hurt by getting caught up in the horrors of a custody battle.
I think you say exactly what you just said here.
-------------------------------
You were married so it is joint debt and your husband is jointly responsible.
these debts were accrued due to adandonement
you had to survive
and since you were a SAHM throughout the marriage this is acceptable
and he is poartially responsible to clear your name & the debt
he should have been paying money throughout the seperation anyway
i would seek advice from another lawyer
But if you divorce, he will be ordered to pay his share to feed the kids.
By not filing for divorce or legal separation when you actually separated, you inferred that you agreed to him living elsewhere and not paying his share. Sucks, yes. But that is the legality of it. You can't now claim that you did not agree to it, when you did nothing about it. Essentially you agreed by not taking any action.
Of course if he should step up and be a man and help you pay the bills...but I do not see that as his legal obligation, due to the fact that you failed to file any sort of protest. i.e. divorce or legal separation.
However, if his credit status is good, you may not want to mention it for reasons you've already mentioned.
Alternatively, you could say that you had to use the credit card to feed the kids because he stopped giving you money to do so. This argument will carry more force with it especially if your husband has been supporting you and your kids all this while.
Meanwhile, do something about your credit rating / financial status. Get a job, or a second job. Also speak with your financial institution and see if you can pay off your debt pursuant to an installment / hardship payment plan. Cite hardship (i.e. single mum) as a reason for the financial institution to freeze interests from accruing as well.
You have to start preparing for the worst case scenario, and that is a legal custody battle over your kids. Start preparing by making it seem that you will be the better mum and the kids are ultimately better off with you. Stabilise all aspects of your life, not just financial. At the end of the day, the child's best interests are paramount and you'd wanna make sure that their best interests are served by being with you!
GOOD LUCK!
RE: the global financial crisis - what happened to all the money? Who exactly is it owed to?
Ok - I am not a genius, and I am not stupid either. But I don't understand the current financial crisis gripping the world...
Where did all the money go? Who is it owed to? Why can't the governments of the world due some kind of debt cancellation, or something like the "consumer credit" counsellors do for people facing bankruptcy?
Is it possible that the unbelievable greed of a few (American CEO's making $150 million a year, leaving failing companies with $50 million severance packages) have brought down the financial system of the entire world?
Say for example that you took out a mortgage with a company, the Halifax for example. Chances are that the Halifax would have re-packaged that mortgage and sold it on to someone else. This is a good way for banks to raise capital and also represents a good form of income for the purchaser. Or it did represent a good form of income. The people who bought these securities, primarily from the financial sector, are now faced with the prospect that the investment they paid a few million for is effectively worthless. This is what is happening around the world. Banking institutions are holding billions of pounds worth of toxic assets on their balance sheets which is resulting in an erosion of confidence over the ability of banks, especially those tightly related to the mortgage markets, to weather this storm as they could potentially loose massive amounts of money. Because of this lack of confidence banks are not lending to each other which means they are effectively unable to lend to us.
This is why we are simply unable to cancel these debts because it would have devastating effects on our ability to live our lives and also on the wider economy.
Hope this is clear enough.
i have $12,000 in credit card debt?
i have an appointment with credit counsellor on thursday, and i want to know what i can expect from it. i am $12,000 in credit card debt.. and even more if you include student loan. but rite now all i want to do is get rid of the CC debt
what does credit counselling do? does it reduce my monthly payments? it says its nonprofit, what does that mean? and i know it affects my credit if i got to credit counselling, but frankly at this point, it really makes no difference. my credit is **** right now anyway..
right now what i need the most is to lower my monthly payments or have my debt consolidate cuz im going crazy over this debt
i am barely making ends up, i am so poor and everything, i need their help
Don't freak out. Credit can always be repaired. 12 grand is not an excessive amount. It may take 2 or 3 years, but you'll get there if you stick to a plan. Your credit will skyrocket after that.
There are many options you can do at this point. Do you work 40 hours a week at a current job? If not, tell them you need 40 hours a week, at least, or you need to move on. After you get one job at 40 hours, go find a second job at 20 hours a week. I know it sucks, but so does being swamped in debt. If you get depressed about that just think about the light at the end of the tunnel.
Make a plan. Eat Wal-Mart spaghetti-O's for a year. Don't go out to eat. Cancel your cable. Get a bike. Cut down on joyriding. Don't rent movies. BUDGET! Stick to your new budget, but be realistic. Saying you will spend 20 dollars a week on food isn't realistic. Budget 6 dollars a day in food, at least. Don't be discouraged if one day you get off track. It happens to even the most frugal people.
Pay your bills off smallest to largest. Call your creditors, and tell them of your situation. If you don't pay on your bills they are forced to sell your debt for pennies on the dollar. Once they realize you truly can't pay they will work with you! I guarantee it. Don't avoid their calls. They want to work with you. If they threaten you, just tell them when they are ready to negotiate they know how to contact you, and hang up.
Don't give up. It truly isn't a lot of debt. You will have to make a lifestyle change for awhile. Work 60 hours a week, make a budget, negotiate with your creditors, and this will all be over soon.
The Start Of A Debt-Free Lifestyle
Debt counselling is a very valuable process if you learn from it. It is easy to go through the process, pay off all your debt and find yourself back in the same situation a couple of years later. Understanding that the process can result in a permanently debt free lifestyle is crucial. Many people can’t wait for debt counselling to end so they can go back to their old ways and max out on the credit offers they are going to get. Don’t be stupid. Creditors will be very happy to get you taking as much credit as before, or more. It is up to you to resolve to stay debt free. Remember, once you have the debt it is difficult and costly to get rid of it. Use this opportunity to change to a permanently debt free lifestyle for the sake of your future and that of your family.
