Friday 31 October 2008

Death on Credit*

When you think of vampires, you may conjure up an image of an evil spirit from Transylvania, who stalks the night sucking the blood out of its living victims. If you don’t believe in vampires, I am sure you will be familiar with the all too real leeches, although hopefully not intimately familiar! These vampiric worms suck blood and even eat flesh.

But what do vampires and leeches have to do with debt?

I came across a couple of debt forums recently which made reference to the aforementioned blood sucking fiends (Debt Questions and Parents Centre).

You see, while we know leeches definitely exist, vampires may not just be a figment of an overactive imagination. The term can be used to describe a very real, predatory person, somebody who preys on other people for financial or emotional gain. Parents Centre goes a step further comparing debt collection agencies to vampires in that you have to invite them in first before they can get their claws into you.

As for preying on others for financial gain, you will no doubt be familiar with the complaints against banks in respect of unfair bank charges. The courts and the Financial Ombudsman Service have received tens of thousands of complaints that unauthorised overdraft charges and returned item fees on current accounts are unfair. If you are already teetering on the edge of the abyss that is debt, the addition of bank charges onto your already overdrawn bank account makes it more and more difficult for you to get yourself out of debt.

Fear not, there is light at the end of the tunnel and no, it is not the burning torches of an angry mob seeking out your bank manager’s crypt.

If you are having difficulties as a result of bank charges, a good place to start is the Office of Fair Trading.

If it is not just bank charges that are giving you nightmares and the spectre of debt is constantly looming over your shoulder, then you may wish to talk to an experienced debt advisor such as the experts at The Debt Helpline.

An experienced debt advisor will take all your circumstances into consideration before explaining the various debt solutions available to you to help you rid yourself of what can seem like the scourge of your every waking moment.

There is more than one way to skin a cat and a good advisor should provide you with information about the following:

Individual voluntary arrangement or “IVA
Debt management plan or “DMP”
Bankruptcy
Consolidation loan
Remortgage
Informal agreement

Beware of allowing yourself to become spellbound by a particularly persuasive practitioner in the art of debt management and don’t make your decision until you have weighed the advantages and disadvantages of all the options appropriate to your circumstances.

While it may seem like banks, credit card companies and other financial institutions are unfeeling, soulless entities, bleeding you dry of your funds and your resolve, you are not alone and there is a support network out there to help you move out of the shadow of your debt and into the light.

*(Mort à Crédit, French novel by the author, Céline).

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