debt collectors

Measuring debt is harder than placing a mere figure on it... the severity of debt situation can hinge on several factors...

1) Age of borrower
2) Existing financial situation
3) Whether the money is owed to 'Ocean Finance' style companies
4) Whether the debt is based on an asset that could be sold if required
 
ste_bla said:
Thats not that bad* if you think about it as 60+ million people in the uk so thats only an avg of say £1.5k per adult

*I asume that the "other debts" include such things as mortgages

uk workforce is only about 30m isn't it?
 
Freefaller said:
there are not 60 million adults dude ;) What about the people under 18 ;) Those were credit card debts not mortgages or unsecured/secured loans either!!

i know thats why i said 1.5k each surgesting there are 40m adults in the uk as;

60billion / 60 million = 1000

Bit if that doesnt include mortgages its concerning as my partner and I owe no money and I dont see how people can get into so much debt
 
Not surprised at all that they offered that amount.

When debts are handled by debt collection agencies one of two things will happen either they act directly for the bank or they buy the debt of the bank.

At this point the original debt is classed as bad debt and irrecoverable. The only money the banks can raise is through selling it off very cheaply.

I would not be surprised if the debt collection company paid only £1000 for the original debt.

As far as how much bad debt is signed off:

HBOS had bad debt of £150 in 2004
RBS had bad debt of £601m in 2004

Please note that both of those are in the retail side of the business only.

Now you should see why they will accept considerable reductions from the original debt. The main downside is they nuke your credit rating for at least 5 years.
 
ste_bla said:
i know thats why i said 1.5k each surgesting there are 40m adults in the uk as;

60billion / 60 million = 1000

Bit if that doesnt include mortgages its concerning as my partner and I owe no money and I dont see how people can get into so much debt

Fair enough - I just did a search on the bbc website for debt in the uk, and if you add mortgages and other things it goes to trillions!! :eek:

http://www.creditaction.org.uk/debtstats.htm

Ok so it's not as bad as I thought, but still it's quite amazing the rate at which it's increasing!
 
Teledude said:
credit cards are evil :(

Hardly.

They are a very useful tool if used with a little common sense.

I'm a 22 year old student, have 5 credit cards with a combined limit fof around 10k, they've allowed me to improve my cashflow, have periods of interest free purchases and the suchlike.

They'll no doubt have improved my credit rating loads (I've never missed a payment). All my internet purchases are made using them as they're more secure.

At the moment I my credit card debt is only around £500, although in the past when taking advantage of interest free offers it's been up as high as about 4k, but never higher than I can afford to pay off.
 
Teledude said:
Hopefully most of you will never run into or hear from one but I would just like to say im now very greatful to them :eek:

Owed £3800 to Egg when I was young and silly and have been running and hiding ever since :rolleyes:

Anyway I got a nasty letter today which shocked me into action! Picked up the phone said sorry and can we come to an agreement.

Yes certainly sir would you like to settle the debt for £2040?

Result :)

Note - I know what I did was wrong and don't condone doing it just thought I'd give the "bad" guys credit :)


Glad your situ is sorted!

My Ex owed 2k to Barclaycard and £1.5k to Cap. 1 and moved address 3 years ago - I still get her old mail which I returned to sender. She went to see a solicitor as she had Bailiffs call (she didnt answer the door) and the solicitor wrote to each company on her behalf. She now has a very bad Credit Record, however her debt has all been written off.
 
ste_bla said:
i know thats why i said 1.5k each surgesting there are 40m adults in the uk as;

60billion / 60 million = 1000

Bit if that doesnt include mortgages its concerning as my partner and I owe no money and I dont see how people can get into so much debt

You can take myself and wife from the that as we have no debt other than our mortgage:)
 
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