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75% debt write off for the Stupids

Hello All,

Recently I have been seeing more Credit Refinance companies advertising on the TV regarding a 'little known Government legislation which allows upto 75% cancellation of debts". Then, on Saturday afternoon, I was at a BBQ and overheard a conversation between two chaps and one was saying that he had been speaking to a finance company who had confirmed that 75% of his debt would be written off with no impact to his credit rating, and had actually been advised to spend a bit more on his credit cards before the cancellation and re-finance was started.

I don't know this chap, and didn't want to get into a conversation with him, but it seemed very wrong to me. If somebody stupid enough to get into massive debt can now get 75% written off without come-back, why isn't everybody doing it? I mean, my mortgage is technically a debt, so if the 'stupids' can get 75% knocked off, I would be more than happy to get the government to give me 75% back on my house - very nice.

Comments?

Reply to
JaffaB
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I bet its not the government giving anyone back 75% of debts. More like an individual voluntary arrangement (iva) and that gets debts left after 5 years of paying reduced monthly payments. From stats ive heard many people who take that route still end up going bankrupt. The winners of course are the refinace companies who add thier fees to your debt and almost certainly take thier monthly payment before other creditors. So the people "giving back" 75% (if that figure is correct) are the companies who are owed money.

Reply to
linkuk

Reply to
Eric Jones

Yeah, but the "bit more" they were referring to are the credit agency's own fees. I don't think IVA's or bankruptcy is all that rosy, people probably only realise this when their 'easy way out' becomes a nightmare of its own.

Reply to
Virgils Ghost

Jaffa, Sounds like an IVA - can't see what else it could be. And yes, it definitely does affect their credit rating. They'll find it hard/impossible to get any credit for the duration of them repaying off whatever amount is agreed on, and possibly for several years after that. Neil Pike

Reply to
Neil Pike

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