The debts we hold on credit cards, overdrafts and personal loans are the number one concern keeping most of us awake at night according to a new survey.
Almost half of those questioned (46 per cent) last month for a web poll on the home page of Stephensons Solicitors LLP said personal debt was their number one concern. The threat of redundancy came second with 31 per cent while concerns about pensions worried 18 per cent. Making the monthly mortgage payments caused anxiety for five per cent of voters.
Liam Waine, a consumer Partner at Stephensons, said: “Obviously it’s no great surprise that these types of debts are worrying so many people. We’re in the eye of the credit crunch storm and consumers are really feeling the pinch at the moment.
“Debt’s a big deal and we understand this. People might feel they have nowhere to turn, but ignoring debt issues won't make them go away. Our advice to those worrying about debts is to prioritise them. Talk to us if you've got debt worries or bills you can't pay.
“The huge irony is, in some cases, the debt could actually be written off. A lot of people could be stressed about debts that are not legally binding. We can look at their loan agreements for them for free in most cases to see if they are as they should be. We have helped thousands of people write off hundreds of thousands of pounds in debt after finding serious discrepancies in their credit agreements.”
Stephensons recently helped a Manchester man write off more than £13,000 from a credit card debt after it was proven in the County Court that the company had not issued the client with the ‘prescribed terms’ when he took out the card. These terms can include the card’s credit limit and a sentence indicating that the credit card company will decide this limit from time to time.
Each case has to be considered on its own merits but this case illustrates that defending a county court claim in relation to a credit card debt can have a positive outcome. The company was forced to pay the clients costs.
Stephensons’ consumer team is one of the leading specialists in the country in dealing with debt problems on behalf of clients. There are various funding options open to people, including legal aid and conditional fee arrangements, also known as no-win, no-fee.
Liam adds: “There are many instances where we can write off debts. If however, the loan is legally binding, we can also negotiate with creditors on a clients behalf. We may be able to offer reduced payments, voluntary arrangements and, when appropriate, bankruptcy.”
“The debt affliction is chronic but people can help themselves by taking the right advice at the earliest opportunity about how best to handle their debts.”
Stephensons has developed a new website, www.debtandrepossession.co.uk, where people can obtain free initial help. The firm also offers a free 30-minute consultation to check through credit agreements and assess the potential of challenging them. For more information on this, contact Liam and his team through www.debtandrepossession.co.uk or call the free helpline on 0800 694 0189.