So many people are struggling to make there credit card and loan payments every month. According to the latest Credit Action report 18 per cent or 8.2 million British adults have £10,000 or more of consumer debt – an increase of 30 per cent on the figure published for 2006.
Total consumer credit to individuals at the end of March 2009 was £232bn and Britain’s interest repayments on that debt were £69.0bn in the last 12months.
It is little wonder that so many people are struggling and that the economy is stuck. With such a large percentage of people’s income going out on debt payments, there is little left for them to spend on anything but essentials, let alone save or invest. Until consumer spending, saving and investing picks up the economy will continue to suffer and the current financial crisis will not end.
Getting out of debt is simply about taking your loans, credit cards and personal finance accounts to zero, a simple process of erasing the debt on a computer screen. Traditionally this is done by paying money to the bank until they delete the balance, but what most people don’t realise is that in reality the debt never really existed. It was create not by the bank lending you money, but simply by them creating the debt in your name and thereby creating new money. And in the same way they created the money, they can erase the debt just as easily and just as quickly. The money never actually existed outside of the computer systems of the banks, and it can be deleted just as easily. In fact when you actually pay off a debt that is all that happens anyway.
So how do you get the fictitious debt erased? Why would the bank want to do that for you?
The answer is simple, make it less painful for them to clear your debt than to keep it, and make sure a judge tells them so.
The first part of this process is to cut the payments you are making to the debts, without getting any negative reports on your credit file. This is a far simpler process than you might think. Under the Consumer Credit Act 2006, it is incumbent upon the bank to keep your welfare of paramount importance and that if you are suffering from anxiety and stress as a result of your indebtedness to them, then they must accept a reduced payment from you. It is all about protecting your ability to work and pay your debts. After all stress and anxiety are a major cause of illness and absenteeism from work.
You can therefore get your payments reduced to as little as £20 per month, which is much less than the several hundreds of pounds most people are paying.
Next you need to get the bank to write-off the debt and return you credit record to zero, without an IVA, debt consolidation, debt management or bankruptcy. This is the bit that can take up to 12 months to achieve, because lets face it, the banks don’t want to write down their “assets” – your future payments. Remember the banks only have one source of “money” and that is debt. Debt is the asset they have on their books and therefore they are not going to give it up easily, not unless they are forced to.
This is where the law comes in. There are a number of provisions within the Consumer Credit Acts 1974 & 2006 that the banks must adhere to and the 2006 Act has a great deal about the way a banks relationship with its customers must be structured. The banks must maintain a fair relationship with their customers, but the entire nature of the bank/customer relationship is by its very nature unfair as the customer is at the mercy of the bank, but the bank never lent them any money in the first place. Remember, they never say “We can’t lend you any money, we’ve lent it all” nor do you have a situation where you go to the bank to get some money and they tell you; “You can’t have any because your money has been lent to someone else.”
Also there are a large number of cases that have recently been successfully won by consumers challenging the legality of their loan agreements based on the Consumer Credit Act 1974 and 2006, but no depositors money has been lost, WHY? because the debts are a fiction.
Getting your debts written off needs to be handled in the right way and it is for this reason that an entire industry has grown up to fight for the rights of ordinary people across the land.
You next step is to get the legal help you need to take this through to completion, and get your unsecured consumer credit written-off, fast. Whilst it is not a simple process in the detail, with the right legal help and a high level of determination, you can get out of debt and on the road to financial freedom faster than you could imagine.
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