Record recession triggers debt management warning

The UK economy sparked a further debt management warning after it was revealed to be the longest in UK history.

An unexpected contraction in the economy by 0.4% between July and September, makes this present recession the longest since records began.

This is the first time ever that UK gross domestic product (GDP) has shrank for six consecutive quarters, since the records on quarterly economic performance were started in 1955.

The news sends a harsh warning to those who are struggling to cope with their debt management issues, as the problems look set to continue for some time still.

Brendan Barber, general secretary of the TUC, said: “Even if we had achieved a technical recovery today, it would not feel like a recovery to the thousands losing their jobs or afraid that they will join the dole queue in the months ahead when unemployment will continue rising. It takes more than a statistical read out and the return of big bank bonuses for a real recovery.”

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “These figures just confirm what most of the UK are seeing and feeling, and shows that the economy is still extremely fragile.

“Every day, people are being affected by friends and loved ones losing their jobs or being unable to cope with their debt problems after redundancy.

“With some companies trying to capitalise on other’s misfortune, it’s worth seeking impartial debt help from a DEMSA member, as these have proven transparent and ethical business practices that are above the requirements of the law.”

Fees & Information

We cannot guarantee a reduction in interest or charges. If an IVA is not maintained it could lead to bankruptcy. Whilst initial debt advice is free, fees will be charged if a solution is taken out.

Fees related to Debt Management Plans are in two parts;

"Initial Fee" means your first two "Monthly Payments", which is paid by You to "Us". This represents our fee for establishing your arrangement, and therefore is not distributed to your creditors, and can be paid in two separate instalments. Retention of this fee will put you into further arrears.

"Monthly Fee" means the Fee payable for our Services each month. This is an amount equal to 17.5% of your "Monthly Payment" (apart from your first two "Monthly Payments" which is the "Initial Fee"), subject to a minimum payment of £30 for disposable incomes of 0 - £100, and £35 for disposable incomes of £100.01 - £200.

Fees incurred for Individual Voluntary Arrangements are variable dependent upon the monthly contribution to the arrangement and the agreement that is reached with your creditors. Fees are made up of Nominees fees relating to assistance given to prepare your proposal and Supervisor fees which relate to the ongoing monitoring of your IVA. Fees are already included as part of your monthly contribution. The level of fees and the method of payment are both agreed by your creditors at the outset of the arrangement.

A record of your agreement with us will be held on your credit file for up to six years, and your ability to obtain credit in future may be affected.

You are provided a cooling off period of fourteen days from the date the agreement was deemed to commence, during which you may cancel our agreement. Should you give notice to us that you would like a refund of a payment, or payments, (being other than the initial fee) then where no distributions have, at that time, been made by us, or are in the process or course of being made by us, in respect of that payment or payments this will be made in full (i.e. without deduction of our fee of 17.5%).