A way through debt nightmares that does not bring further crippling costs
Added: (Sat Nov 22 2003)
Pressbox (Press Release) -
PRESS RELEASE
22 November 2003
A WAY THROUGH DEBT NIGHTMARES THAT DOES NOT BRING FURTHER CRIPPLING COSTS
Debts are soaring in the UK - and many borrowers are faced with a problem that seems almost impossible to solve. Many resort to costly temporary 'solutions' that only add to their difficulties. However, IDF Services adopt an approach overlooked by most of the debt management industry. This sets out to reach an 'informal arrangement' for debt repayment between borrower and lender that is affordable, orderly, and attractive to both sides.
SOARING DEBT
The UK's debt statistics are staggering. Since deregulation of the credit industry in the '80s, over 1500 credit and store cards have been launched. Advertising and direct mail encourage more borrowing through first-stage lending or debt consolidation. £16.7 bn a month goes on credit cards and unsecured lending - an all-time record. Consumer debt is estimated to exceed £1 trillion in the UK shortly. The Citizens Advice Bureau recently found that the average person owes just under £11 000 on top of their mortgage debt, and some have debts almost 14 times their income.
Ready availability of credit means many become heavily over-committed. When debts become unmanageable, many simply put their heads in the sand, avoiding opening letters from creditors - in the hope that the problem will go away. Over 6.1m households nationwide face this crippling situation. The average household has total debts of around £37 000, exceeding the family income. The result: many resort to borrowing even more or incur further interest costs and late payment charges. Increases in interest rates stretch the resources of borrowers still further.
Many temporary 'solutions' do break the cycle of debt. But they often make matters worse longer term. Loan facilities bring further interest charges and merely compound themselves later on. £1000 borrowed on a credit card would take an average 27 years to pay by minimum monthly payments. A new consolidation loan may be secured on the borrower's home, creating future headaches over keeping up repayments.
THE IDF APPROACH
The IDF answer to the debt problem gives the borrower counselling, ongoing support and guidance from professional advisers, and a planned, affordable approach to paying off debts acceptable to both borrower and lender. People should not be alone when trying to find a way through such a difficult period. This is the thinking behind the IDF approach, employing an 'informal arrangement' with lenders that is the least expensive way of repaying debts in an affordable, orderly manner. This 'human dimension' to resolving debts makes it possible for the borrower to approach the future with renewed confidence. The IDF team of professional advisors (independent of creditors and financial institutions) works directly with clients to identify and understand their particular difficulties. It steers them through this tough period
The process starts with a simple self-assessment form in which the client lists his or her financial commitments. Then IDF takes up the problem on the client's behalf (to an agreed precise fee) taking the following steps:
1 Creditors are asked to suspend the client's credit accounts and freeze interest charges.
2 The client's personal circumstances are reviewed. Priority monthly costs are taken into account and a full financial statement of affairs is drawn up.
3 An agreement is put forward for conclusion between the client and his or her creditors based on what the client can actually afford.
All this is done with the creditor's full co-operation. It is not designed to mislead or cheat creditors. It simply sets out to help the client meet financial commitments in an orderly, manageable way.
All paperwork is handled by IDF. The client informs creditors that IDF is now acting on his or her behalf. All communications go through IDF, reducing stress and giving professional support at all times. IDF uses the law to negotiate 'an informal arrangement' repayment plan that is affordable - rather than what the creditors expect the client to pay!
It is surely better all round for a borrower to pay what he or she can afford, rather than become bankrupt. IDF offers a viable way to avoid getting deeper into debt, an orderly, planned, constructive method of accommodating all sides
Further details are obtainable from:
IDF Services Ltd
The Old Barn
62a Sparrows Hearn
Bushey Heath
Herts
WD23 1FY
Tel: 0208 421 9100
Fax: 0208 421 9101
e-mail: info@idfservices.co.uk
www.idfservices.co.uk
- ENDS -
Issued on behalf of IDF Services Ltd by Bob Douce PR, 43 Station Avenue, Coventry, CV4 9HR
Contact: Bob Douce (tel/fax: 024 7646 1751; e-mail: bobdouce@doucepr.demon.co.uk