Have You A Negative Equity Mortgage?

If you purchased your house around 2006 – 2008 and find yourself in Negative Equity but according to an article on Net House Prices even people who took their mortgage out in 2014 would find themselves in negative equity if there was a 10% drop in house prices. With the increased uncertainty around Brexit the continuation of the current drop in values it is a real possibility.

Negative Equity UK which is part of the CD Fairfield Capital Group are the leading experts when it comes to negative equity.  If you find yourself in this situation do not worry as we have helped hundreds of families all over the UK achieve a mortgage write off in order to allow them to negotiate a new mortgage or move to a new home.

We can carry out a bespoke case review that takes into consideration each client’s individual circumstances and provide our clients with a range of options on how they can solve their negative equity problem.  We are proud of our net promoter score of 90% and the independent rating of 4.88/5 from our clients, this results in us being the highest independently rated debt management company in the UK.

With a dedicated and experienced team of financial advisers and insolvency practitioners in-house we are also the only negative equity company in the UK to be approved and regulated by the FCA on all the options available to help you with your negative equity problem.

Negative Equity UK was started by Phil Davison & Tom Cardwell who have over 20 years of combined experience between them in the property and financial sectors.  With our average mortgage write down of over £75,000 and a success rate of 96.6% we are sure that we will find the right solution to allow you to move on.  So if you are looking for a negative equity mortgage solution get in touch today on 0161 660 4403 to see how we can help you achieve a mortgage write down.

What Is Negative Equity

What is Negative Equity?

Negative equity happens when something is worth less than the finance (mortgage or loan) taken out to purchase it originally.  It is a common problem after the housing market crashed in 2008 but as the housing market has never recovered to the 2008 levels hundreds of thousands of people still find themselves still in negative equity.

What Does Negative Equity Mean?

While your home is in negative equity you will find it difficult to borrow money against the property and will also struggle to sell the property in order to move to a new or bigger home.  At Negative Equity UK with over 20 years of experience in the property and financial  sectors they have helped over 750 clients achieve a mortgage write down through negotiating with your mortgage provider.  Their average write off is over £75,000.

How to Get Out of Negative Equity?

Negative Equity UK (part of the CD Fairfield Capital Group) are one of the highest rated debt management companies with a 90% NPS score and 4.88/5 stars on the independent reviews.co.uk website.  As one of the only property debt companies in the UK which are authorised and regulated by the FCA to offer the full range of options available to get you out of your negative equity situation.

How can I refinance my home with negative equity?

There are options available to you if you are looking to refinance your home even if it is in negative equity.  Speak to us today on 0161 660 4403 to see how we can help you.  We can even look into whether you were mis sold your mortgage.

How To Get Out of Negative Equity Home?

If you are in a negative equity situation and looking to find out your options have a no obligation and confidential chat today on 0161 660 4403. You can also read some of the case studies and amounts of debt write off’s we have achieved for a selection of our customers.

 

Are you in Negative Equity? We can help!

There is a considerable amount of misinformation surrounding property debt and negative equity. The aim of this and subsequent articles is to provide an overview of how we have been assisting homeowners and landlords with property debt issues since 2012.

CD Fairfield was formed by Philip Davison (MD), and Tom Caldwell as a reaction to the fallout from the unprecedented property crash in Northern Ireland in 2008. At the time it was estimated that approximately 60,000 properties had mortgages greater than their value. The Council of Mortgage Lenders estimated the negative equity total to be circa £2.5billion.

Of course, this isn’t an issue for everyone in negative equity, but for those who need to sell for financial reasons or otherwise, many found themselves in a “bad debt” situation for the first time in their lives, and through no fault of their own.

The “party line” from Lenders and Government Agencies was to speak to your lender. I can tell you from significant experience that in many cases that is the last thing a borrower should ever do!

It was clear that a bespoke mediation service was required to take borrowers by the hand to not only guide them through this minefield but provide full representation, an end-to-end solution.

As well an being authorised and regulated by the Financial Conduct Authority we have an in-house Insolvency Practitioner, who is a member of the Chartered Accountants of Ireland and R3 (The Association of Business Recovery Professionals). We also have Senior Management who holds membership of the Insolvency Practitioners’ Association.

With these associations and levels of regulation, we have the full suite of debt solutions under one roof which includes:

  • Mortgage re-negotiations (with the existing lender)
  • Mortgage Mis-selling Claims
  • Informal/Negotiated Settlements
  • IVA (Individual Voluntary Arrangement)
  • Bankruptcy

We also recognised that there were a number of distinct differences based on whether we were helping homeowners or Landlords in Northern Ireland or in mainland UK. This being the case variations in brand were created as follows:

Negative Equity UK

Negative Equity NI

Landlord Debt Advisory

Get Help With Debt

What sort of results does Negative Equity UK achieve? This is a snapshot of some settled cases: Settled Cases

Our independent Client Review show an approval rating of 4.8/5.00

Securing successful outcomes for clients is front and centre in all that we do. How do we do this?

  • Developing and maintaining excellent working relationships with lenders
  • Recruiting highly competent staff from the legal, accountancy, insolvency, banking and financial services sectors
  • Continual investment in systems and people
  • We listen to our clients and implement constant improvement based on feedback

If you are looking to sell house in negative equity or for negative equity help call us today on 0161 660 4403 and see how we can help.

 

 

 

UK house price growth to remain flat in 2018.

House price growth across is to remain essentially flat in 2018, according to the latest Nationwide House Price Index, which predicts growth of only 1%.

According to the report, modest annual growth in the wider economy of 1-1.5%, combined with stagnating household finances will act as a drag on house prices, holding down growth and keeping activity in the housing market subdued over the next 12 months.

The report also notes that house price growth already slowed over the last year, with prices up by only 2.6% annually in 2017, compared to 4.5% in 2016.

Despite this modest growth in 2017, property prices ended the year down slightly month on month, recording a fall of 0.6%, according to the Halifax.Robert Gardner, chief economist at Nationwide, said; “Low mortgage rates and healthy employment growth continued to support demand in 2017, while supply constraints provided support for house prices. However, this was offset by mounting pressure on household incomes, which exerted an increasing drag on consumer confidence as the year progressed.

“The impact of previous policy changes, including additional stamp duty on second homes, changes to tax deductibility of landlord expenses and lending criteria, meant that demand from buy to let investors remained subdued in 2017.”

In 2017, London house prices were hit hardest by the slowing market, falling by 0.5% over the year.

We can help.

These figures will be worrying for homeowners already struggling with negative equity. With prices stagnant across the UK and some areas even seeing prices fall, mortgage borrowers with negative equity will have no hope of seeing their property gain enough value to overtake the shortfall.

So, if you’re struggling to sell a home you can’t afford, or you’re trapped in arrears or negative equity on your property, then we can help.

At Negative Equity UK, our team of property debt specialists offers a range of possible solutions based on your individual situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.

We don’t adopt a one size fits all approach to helping our clients. Instead, we offer bespoke solutions based on your specific needs and circumstances.Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.

If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 0161 631 2727 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.

What is Negative Equity and why is it a problem?

Around the UK, many homeowners have found themselves trapped in negative equity since the property crash and recession ten years ago, but many people don’t know what negative equity is or how it can affect them and their finances.

Put very simply, ‘negative equity’ means that the value of something against which a loan was secured is now less than the outstanding balance. In the United Kingdom and Ireland, it is a term applied almost exclusively to property debt.

In the past, bricks and mortar were popularly seen as a safe investment, guaranteed to gain in value.Similarly, it was accepted that other things depreciated in value, often quite significantly. The market value of a car might drop by 20-30% as soon as it is driven out of the showroom. People understand this and factor this loss of value into their calculations whenever they decided to make an expensive purchase.

But property? That was different. Or, at least, so most people thought.

The recession which hit the UK in 2008 saw the value of many properties plummet. This left those who had taken out loans based on the pre-recession worth of their homes, with debts greater than the post-crash value of their property.

If, in 2006 to ‘07 when the British and Irish property booms were at their peaks, a buyer took a mortgage of £210,000 for a house, today valued at £140,000, they have a problem as selling their home will still leave them with a significant shortfall, which they will still have to pay back.

This is the main problem with negative equity, in addition to this significant loss, the amount raised from a sale at this stage would be insufficient to clear the outstanding debt to the bank of building society.

In the current climate those who have suffered are the borrowers who, in the days of ‘easy money’, took out loans of 90%-100% of the property’s value. From the outset, they were most at risk in the event of any fall in the value of property.

We can Help.

There are a number of possible solutions we can offer to resolve your property debt problems, depending on your circumstances, but for many of our clients a sale and settlement is the only solution to their problem.

We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender.

For other clients remortgaging might be their best option and, in some cases, we might pursue an individual voluntary arrangement, or IVA. This is a legal agreement between you and your lender and is suitable for people who have debts with multiple lenders.

Whatever your circumstances, the first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.

Take a look at our reviews and call us on 0161 631 2727 or go to our website and arrange for us to call you at a time that suits you.

We offer solutions for unaffordable property debt.

At Negative Equity UK, when we meet our clients for the first time, they often tell us that they believe their situation is hopeless and they do not think there’s any way out of their debt situation. Many are worried that their debts will inevitable force them to go bankrupt.

There are, however, a range of solutions that can be pursued in order to deal with a property in negative equity. Once we have completed an initial consultation with our clients, we can begin to plan the best course of action for dealing with you problem debt.

Informal settlement.

For the majority of our clients, the best option available is usually a negotiated settlement with their lender. This involves the borrower selling the property and our team negotiating with the lender to write off as much of the shortfall from the sale as possible. This leaves our client with an agreed, affordable amount to repay either in instalments or as a single lump sum payment depending on what makes the most financial sense for them.

We often find that our clients are sceptical that a bank would agree to write down debt, but there are good reasons for them to do this. Repossessing a property and then paying someone to sell it for them is a long and expensive process for the bank and they rarely get the full market value for the house, so agreeing a settlement is often the best option for both parties.

An Individual Voluntary Arrangement.

An individual voluntary arrangement (IVA) is a legal agreement between you and your creditors. IVAs are a possible solution we would examine where a borrower owes money to multiple creditors.

Most types of debt can be included in an IVA, including mortgage debt, credit card debt, unpaid council tax or money owed to HMRC. An IVA might also be worth discussing if you own multiple properties with mortgages from different lenders, or you have unsecured debt from several creditors.

Once a settlement is agreed with your lenders it can be paid as a five year payment plan, known as a contribution IVA, or, if you can afford it, as a single lump sum.

Remortgage/restructure.

For most of our clients, it won’t be a good idea to try to resolve their debt problems by taking on more debt, in a few cases, however, it can be possible to deal with property debt by remortgaging.

While not suitable for everyone, restructuring your mortgage is an option that we might consider with clients who are struggling financially due to unexpected changes in their circumstances, such as a change in your work situation, if you have been made redundant, retired or had your hours reduced, or if your family is growing.We have successfully negotiated with many of our clients’ lenders to extend their mortgage term, allowing them to stay in the home they had worked so hard to secure.

What do our clients say?

One of our recent clients, Kerry, said this after we completed her case; “The service provided by Negative Equity was excellent. Despite all of my concerns and fears about the process they really went out of their way to provide excellent guidance and advice. They took their time explaining in detail the process, no question was left unanswered. My negative equity of £97,000 was reduced to £14,000 final payment. I can’t thank them enough.”

Contact Us Now.

We have successfully negotiated hundreds of cases every year where we have arranged the sale of our clients’ homes and reached an affordable debt settlement with the lender. Whatever the situation we will offer you a bespoke solution based on your own personal circumstances. The first step to dealing with your property debt is to contact Negative Equity UK for an initial free, no obligation consultation with one of our advisors.

Take a look at the rest of our reviews and call us on 0161 631 2727 or go to our website and arrange for us to call you at a time that suits you.

Struggling with mortgage arrears and negative equity? We can help.

Taking out a mortgage and buying a house is the biggest financial decision most people will make in their lives. No one makes this decision with the intention of falling behind on their payments or not paying back the loan, but sometimes situations arise which make it impossible for borrowers to meet their mortgage costs.

This situation is even worse when the value of your home is less than the outstanding value of the mortgage on it. This is known as negative equity and it compounds your problems with arrears.

If left unresolved, mortgage arrears could ultimately lead to your property being threatened with repossession. Negative equity gives you less scope for dealing with your debt because selling your property will not generate enough to pay off your mortgage or arrears, leaving you burdened with the shortfall.

Negative equity has become quite common in the UK since the financial crisis ten years ago, when house prices collapsed, forcing down the value of many peoples’ homes and leaving them owing many thousands of pounds more than their property was now worth.

At Negative Equity UK, we’ve seen hundreds of clients who can’t pay their mortgage and have fallen into arrears for a range of reasons. Some people have lost their job or had their working hours cut. Others bought their house before having children, only to find their costs becoming unmanageable once they start a family. In some cases, an illness has forced them to leave work or make changes to their home.

Whatever the source of your mortgage problems, the consequences of falling into arrears can be serious. In the worst case scenario, you could potentially lose your home and damage your credit rating badly enough you may struggle to borrow again.

With arrears mounting and your property already in negative equity, you need to take steps to deal with your debts. Holding out for your circumstances to change is not going to help and waiting could make the problem worse.

At Negative Equity UK, our team of property debt specialists offers a range of possible solutions based on your situation. Whatever your circumstances, the process starts with a case review. We will obtain all of the original documentation on your mortgage from your lender so we can assess your needs and work out the best way for us to help you.

Rather than take a one size fits all approach, we off bespoke solutions based on our clients’ specific problems and financial circumstances.

Many people need to sell their house in order to deal with their debt. In this case, we can arrange a shortfall sale and negotiate with your lender in order to write off as much of the remaining debt as possible, leaving you with a much smaller amount left to pay.

In September alone we wrote off a total of £1,287,323 of unaffordable mortgage debt for our clients.

If you’re in arrears on your mortgage, or you’re trapped in a property in negative equity and you need to move on take a look at our reviews and contact us on 0161 631 2727 or fill out a contact form on our website and we will arrange a call back and start the process of dealing with your property debt.

 

I Need A Debt Management Plan

I Need A Debt Management Plan

Debt debilitates people. It affects their physical and mental health, robs them of their self-respect and slowly, gradually, ultimately takes away their sense of well-being having first ended their hopes and dreams.

American financial author and television/radio personality Dave Ramsey advised: “You must gain control over your money or the lack of it will forever control you.”

As advice goes, it wasn’t too wide of the mark.

It has never been easier to accumulate debt. We are encouraged to do so all the time with the entire capitalist economic system now appearing to run on tick. As a result, tens of millions of people spend tens of millions of pounds, dollars, euros or whatever else buying what they want when they want it.

Profligacy was anathema to earlier generations, of course. Our grandparents used to warn against this lifestyle, their motto having been, “If you don’t have the money to buy it, don’t buy it.”

But somewhere or other along the road we turned off away from that simple straight and narrow route and instead began to do things another way. Many have lived to regret that change, having discovered for themselves the wisdom of Mr Micawber’s oft-quoted, recipe for happiness as cited in Charles Dickens’ David Copperfield: “Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds, nought shillings and six pence, result misery.”

As long ago as 1732 physician and preacher Thomas Fuller warned: “Debt is the worst poverty.” Prophetic words.

And in William Shakespeare’s Hamlet, Polonius cautioned: “Neither a borrower nor a lender be, for loan oft loses both itself and friend.”

There is an even older proverb which urges, “Before borrowing money from a friend, decide which you need more.”

We really ought not to be too surprised, then, to find just how cripplingly undermining debt is; over the centuries – the millennia, even – the warnings against succumbing to it have been numerous, after all.

But at some point some person or group of people, who stood to make an awful lot of money from the process, decided things would be much better if we were all to start borrowing money – from them, of course – and spending it like it were our own. Never have the results of that philosophy been more obvious.

On January 13, 2016, a report by Simon Read appeared in The Independent beneath the headline, ‘Is the UK facing a debt disaster?’
It was a rhetorical question given that the opening paragraph read: ‘Shock new figures published today reveal that household debt has soared by two-fifths in just six months.’
It continued: ‘Aviva’s Family Finances report found that average debt now stands at £13,520 – a climb of £4,000 from £9,520 last summer. It is the highest levels seen in the quarterly survey for two-and-a-half years.

“It is concerning to see that household debt has grown to such levels,” said Caroline Siarkiewicz, head of UK debt advice for the Money Advice Service.

‘The rise in the figure – which doesn’t take account of mortgage debt – means the average amount owed is 24 per cent higher than in winter 2011 when the data was first recorded.

“The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016,” said Louise Colley, managing director, protection, Aviva Life UK.

‘Aviva’s reports makes for sobering reading. It suggests average credit card debt has climbed by more than a fifth in the last six months, from £1,960 in summer 2015 to £2,370 now. The amount owed on overdrafts has increased even more quickly, rising by almost two-fifths from £870 to £1,190.

‘Meanwhile, one in four families now owes money on a personal loan – that’s a rise of almost a quarter from a year ago – with an average outstanding balance of £2,080. Over the last five years, mortgage debt has also risen by a more than a fifth.’

So there, in those few paragraphs, you see all the problem areas identified – mortgages, credit cards, overdrafts and personal loans. Add payday loans to that quartet and you have a full house of debt in its various guises.

Benjamin Franklin once said: “Creditors have better memories than debtors.”

But the problem isn’t with debtors’ memories – it’s with their inability to pay, not least because we insist on spending money which we should instead be using to pay off what we already owe.

We borrow too much too readily in living beyond our means. And that translates as more going out than is coming in, resulting in misery as per Micawber.

If we are to escape it, debt must be managed. And almost certainly that will require help from an outsider with a lot of knowledge.

The good news is that such help is available from experts who know exactly what debt resolution entails and understand fully what, under the law, is required of a debtor. That’s a level of expertise most of us just don’t have.

Debt management is the answer to the question of how to get out of debt. So too is our commitment to the belief that debt relief is realistic and therefore can be achieved. Mortgage debt, credit card debt, unsecured loans, overdrafts – there is a solution for all of these.

There are different ways of achieving debt relief, though ultimately each will involve negotiation with creditors. YOU DO NOT HAVE TO DO THE NEGOTIATING. There are others who will act on your behalf.

But before they can do that, they and you have to sit down and have a very honest, to-the-point, no-nonsense, tell-it-like-is meeting to reveal the full extent of the problem and how it has come about.

Then, armed with that information, your adviser will come up with what amounts to a rescue plan designed not only to ensure your fiscal survival but to liberate you from the hardship in which currently you are entrapped. Getting free of debt isn’t so much a case of beating the wolf back from your door – it’s about making sure it never comes back to imprison you again.

Lenders listen to advisers, negotiators and facilitators they respect. If the debtor’s case is made to them by professionals of proven knowledge, they will do business.

Get Help With Debt certainly ticks those boxes. Typically they achieve 80% to 90% debt write-off for their clients, many of whom had feared  that they were beyond help.

Lenders know that a GHWD settlement proposal is only made after a thorough examination of all the facts – the size and nature of the debt, the circumstances whereby it has come about, income, outgoings, resultant ability – or inability – to pay, the precise type of loan(s) and the small print of the contract.

Their respect for GGHWD stems from experience of having negotiated with them in the past, plus the fact that they are Financial Conduct Authority (FCA)-licensed and regulated. In bankers’ eyes, that gives GHWD real status. It is also the client’s safeguard.

Loans can be re-negotiated. Loans can be written off. Banks know that attempts to recover debt take a lot of their time and money so they do the sums in weighing up how much of both they might have to spend pursuing something that ends up being irretrievable.

Loans are re-negotiated or written off every day of the week, with creditors ‘providing debt forgiveness’ to give the process its legal and technical title.
Get in touch now to speak to an expert!

Personal Debt, Do You Need An IVA?

Personal Debt: Do You Need An IVA?

Personal debt is a growing problem in the UK – and many financial forecasters are predicting that things could get a whole lot worse.

Earlier this year Louise Colley, managing director, protection, Aviva Life UK, warned:. “The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016.”

Personal debt has grown, in part due to record-low interest levels. Those have meant low-cost loans, with many having availed of the opportunity for so-called ‘cheap money’.

For many the day of reckoning has yet to come.

For others, however, it has arrived or will do so in the very near future. The number of ‘hits’ on the Get Help With Debt website confirms the level of public anxiety at this juncture.

And with so much uncertainty following the June 23 vote to leave the EU, a lot of UK citizens are keeping their fingers crossed that some of warnings as to what may happen a few months or years down the line fail to materialise.

The truth is that no-one knows for sure at this stage. It really is a ‘wait and see’ moment.

The likelihood is that personal debt will continue to be a major problem in the UK, leading to an increase in the number of Individual Voluntary Arrangements (IVAs) between those entrapped and those to whom they owe money advanced as unsecured loans.

An IVA is a formal debt solution enabling a debtor to pay back what he or she owes on unsecured loans – personal loans, credit cards and overdrafts – over an agreed period of time. This requires acceptance by 75% of the creditors.

And while an IVA is the best solution in certain situations, there are others in which a different course of action would be more appropriate and beneficial.

Get Help With Debt’s team of experts know what works best, where and when. For that reason they provide guidance best-suited to particular any given set of circumstances.

A typical IVA scenario is one in which money is owed to a number of creditors. That number may range from three to dozens.

If those debts are insurmountable, or if it is unrealistic for that debtor to continue to service an unfeasible volume of debts whilst trying to provide for their family, an IVA may well be the best solution to that problem.

An IVA can be a lump-sum settlement. Usually that money is raised through the debtor’s family or friends.

More typically, however, an IVA runs for a five-year period.

To qualify for an IVA you must be completely unable to repay your unsecured debts in a reasonable time, but able to make a reasonable monthly repayments towards clearing them.

.If  the IVA proposal is accepted  by the creditors, the borrower is required to meet all the repayment obligations to which he/she has committed himself/herself.

In negotiating an IVA, the whole premise is that it is both reasonable for you and affordable to you whilst acceptable to the creditors. But that means there is no wriggle room; it must be adhered to, without fail, from start to finish.

Provided the debtor keeps up his/her end of the bargain, creditors will do likewise. That means they will leave the debtor alone, so no more letters, phone calls or hassle.

And at the end of five years, provided the debtor has honoured the agreement, the creditors will write off any remaining debt. This can amount to a huge percentage of the original debt.

Because they know the law inside out, Get Help With Debt’s highly qualified personnel are equipped to negotiate best-case solutions to your debt problems.

In any given situation, they know what will work and what will not. So if an IVA is not the best solution, they will examine the other options to find which one is.

Always they start by contacting all of a client’s creditors to point out that the current situation is unaffordable, providing proof of why that is so.

At that, they will propose an interim arrangement to demonstrate willingness to pay what is affordable.

Meanwhile the team will work on a more permanent solution – an IVA, a debt management plan or bankruptcy.

The bottom line is that creditors are realists who know that they cannot get money where there is none. That is why they are willing to work with people whose knowledge, ability and integrity as negotiators they respect.

If, therefore, your case is presented by those your creditors recognise as being experts, it will be viewed much more favourably than would otherwise be true.

Use the contact details on the Get Help With Debt website to get advice on how best to solve your personal debt problems.

I Have Unaffordable Debt, Who Can Help Me?

I Have Unaffordable Debt, Who Can Help Me?

I have unaffordable debt, and I need help!

Debt debilitates people. It affects their physical and mental health, robs them of their self-respect and slowly, gradually, ultimately takes away their sense of well-being having first ended their hopes and dreams.

American financial author and television/radio personality Dave Ramsey advised: “You must gain control over your money or the lack of it will forever control you.”

As advice goes, it wasn’t too wide of the mark.

It has never been easier to accumulate debt. We are encouraged to do so all the time with the entire capitalist economic system now appearing to run on tick. As a result, tens of millions of people spend tens of millions of pounds, dollars, euros or whatever else buying what they want when they want it.

Profligacy was anathema to earlier generations, of course. Our grandparents used to warn against this lifestyle, their motto having been, “If you don’t have the money to buy it, don’t buy it.”

But somewhere or other along the road we turned off away from that simple straight and narrow route and instead began to do things another way.

Many have lived to regret that change, having discovered for themselves the wisdom of Mr Micawber’s oft-quoted, recipe for happiness as cited in Charles Dickens’ David Copperfield: “Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and six pence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds, nought shillings and six pence, result misery.”

As long ago as 1732 physician and preacher Thomas Fuller warned: “Debt is the worst poverty.” Prophetic words.

And in William Shakespeare’s Hamlet, Polonius cautioned: “Neither a borrower nor a lender be, for loan oft loses both itself and friend.”

There is an even older proverb which urges, “Before borrowing money from a friend, decide which you need more.”

We really ought not to be too surprised, then, to find just how cripplingly undermining debt is; over the centuries – the millennia, even – the warnings against succumbing to it have been numerous, after all.

But at some point some person or group of people, who stood to make an awful lot of money from the process, decided things would be much better if we were all to start borrowing money – from them, of course – and spending it like it were our own. Never have the results of that philosophy been more obvious.

On January 13, 2016, a report by Simon Read appeared in The Independent beneath the headline, ‘Is the UK facing a debt disaster?’

It was a rhetorical question given that the opening paragraph read: ‘Shock new figures published today reveal that household debt has soared by two-fifths in just six months.’ It continued: ‘Aviva’s Family Finances report found that average debt now stands at £13,520 – a climb of £4,000 from £9,520 last summer. It is the highest levels seen in the quarterly survey for two-and-a-half years.
“It is concerning to see that household debt has grown to such levels,” said Caroline Siarkiewicz, head of UK debt advice for the Money Advice Service.

‘The rise in the figure – which doesn’t take account of mortgage debt – means the average amount owed is 24 per cent higher than in winter 2011 when the data was first recorded.

“The alarming levels of rising household debt, along with a recent reduction in income and savings levels, paints an uncertain picture for the family purse in 2016,” said Louise Colley, managing director, protection, Aviva Life UK.

‘Aviva’s reports makes for sobering reading. It suggests average credit card debt has climbed by more than a fifth in the last six months, from £1,960 in summer 2015 to £2,370 now. The amount owed on overdrafts has increased even more quickly, rising by almost two-fifths from £870 to £1,190.

‘Meanwhile, one in four families now owes money on a personal loan – that’s a rise of almost a quarter from a year ago – with an average outstanding balance of £2,080. Over the last five years, mortgage debt has also risen by a more than a fifth.’

So there, in those few paragraphs, you see all the problem areas identified – mortgages, credit cards, overdrafts and personal loans. Add payday loans to that quartet and you have a full house of debt in its various guises.

Benjamin Franklin once said: “Creditors have better memories than debtors.”

But the problem isn’t with debtors’ memories – it’s with their inability to pay, not least because we insist on spending money which we should instead be using to pay off what we already owe.

We borrow too much too readily in living beyond our means. And that translates as more going out than is coming in, resulting in misery as per Micawber.

If we are to escape it, debt must be managed. And almost certainly that will require help from an outsider with a lot of knowledge.

The good news is that such help is available from experts who know exactly what debt resolution entails and understand fully what, under the law, is required of a debtor. That’s a level of expertise most of us just don’t have.

Debt management is the answer to the question of how to get out of debt. So too is our commitment to the belief that debt relief is realistic and therefore can be achieved. Mortgage debt, credit card debt, unsecured loans, overdrafts – there is a solution for all of these.

There are different ways of achieving debt relief, though ultimately each will involve negotiation with creditors. YOU DO NOT HAVE TO DO THE NEGOTIATING, HOWEVER. There are others who will act on your behalf.

But before they can do that, they and you have to sit down and have a very honest, to-the-point, no-nonsense, tell-it-like-is meeting to reveal the full extent of the problem and how it has come about.

Then, armed with that information, your adviser(s) will come up with what amounts to a rescue plan designed not only to ensure your fiscal survival but to liberate you from the hardship in which currently you are entrapped. Getting free of debt isn’t so much a case of beating the wolf back from your door – it’s about making sure it never comes back to imprison you again.

Lenders listen to advisers, negotiators and facilitators they respect. If the debtor’s case is made to them by professionals of proven knowledge, they will do business.

Get Help With Debt certainly tick those boxes. Typically they achieve 80% to 90% debt write-off for their clients, many of whom had feared  that they were beyond help.

Lenders know that a GHWD settlement proposal is only made after a thorough examination of all the facts – the size and nature of the debt, the circumstances whereby it has come about, income, outgoings, resultant ability – or inability – to pay, the precise type of loan(s) and the small print of the contract.

Their respect for GHWD stems from experience of having negotiated with them in the past, plus the fact that they are Financial Conduct Authority (FCA)-licensed and regulated. In bankers’ eyes, THAT gives GHWD real status. It is also the client’s safeguard.

Loans can be re-negotiated. Loans can be written off. Banks know that attempts to recover debt take a lot of their time and money so they do the sums in weighing up how much of both they might have to spend pursuing something that ends up being irretrievable.

Loans are re-negotiated or written off every day of the week, with creditors ‘providing debt forgiveness’ to give the process its legal and technical title.

Get in touch now if you need help with unaffordable  debt!