Tuesday, 10 January 2017

SURVIVING CREDIT CARD DEBT

The amount of debt owed by consumers on credit cards is at an all time high. That's what is revealed by Bank of England figures just published

Do bear in mind that the law protects you against harassment by your creditors and they include banks and other financial institutions who have issued you with a credit card. In Breaking Law (chapter 12) I advise what you can do when your creditor goes too far in trying to persuade you to pay over money you owe. I tell the story of a customer of the Royal Bank of Scotland plc who was in debt to it. Although she had made it plain that she did not want to speak to the bank, they spoke or attempted to speak to her over the phone on 547 occasions. She was intimidated by this pressure.In 2013 the Court of Appeal upheld a £7,500 award to her for the harassment she had suffered.

And if your creditor will not accept a debt management plan under which you pay a monthly sum which is shared among your creditors in proportion to how much each is owned, there are other options for you. The ultimate one is to ask for your own bankruptcy or invite your creditors to bankrupt you. Remember, though, that no creditor can have you made bankrupt unless you owe them at least £5,000. The old figure was £750. Much more in Breaking Law.