Debt Free Direct Share Discussion Threads

[pogue] 27/1/2007 09:10

Adeberry
sorry to butt in on a personnal argument but the post proving your theory meerly shows alot of people have mortgage problems proves nothing. All the real life problems I have read about on debt help boards with real people with and without mortgages get IVAs. The conversion rate for callers to IVA compaines is about 4% of callers so the details you gave to them obviously put you in the 96% of those that were not sufficiently bad or too bad to warrant an IVA. Try reading loads of real life examples there not newspaper headlines. I would guess with your vast wealth you have lost touch with real life problems.

[mercier et camier] 26/1/2007 22:56

pogue - 26 Jan'07 - 19:16 - 721 of 726


'The IVA market is slowing down because people are getting further into debt. One would think this would be a plus but it isn't. IVAs only work when debtors have the money to pay back but won't. The recent interest rate rises have forced even more debtors in the won't pay category into the can't pay category.'

and your proof for this belief?




Shocking figures show just how bad debt problem is within the UK
Shocking figures have been released which show that the UK's debt problem increases by £1 million every 4 minutes. Many people will find this information absolutely shocking, as although we do know that the debt problem is a big problem within the UK, it is not until we see figures like the one mentioned that we realise just how bad it actually is.

A big portion of that figure is blamed upon high mortgages being taken out. These days, mortgage companies are allowing people to take out up to five times their annual income and although that may seem like a good idea at first, it can cause a lot of trouble later on. It is thought that the average mortgage now is around £142,000. Personal debt is also largely to blame and at current it stands at over 1 billion pounds.

What is even more shocking is that the figures for mortgage secured loans currently total over 3 trillion pounds. Most people cannot even imagine would that figure is in reality. Basically all you need to know is that it is a lot of money and it shows exactly how bad the debt problem is. People just close their eyes to it but with figures like that it is hard to ignore it any longer. Loan companies are mainly to blame because they give away their loans far too freely. Many fail to do background checks or they simply give loans to people without really caring how they will pay it back. Many people think that loans will sort out all of their problems but they don't and they end up finding that out the hard way.

Overall the further price rises from companies such as the Bank of England, are no doubt going to make the debt problem worse. In order to stop these debts from rising it has got to be a combination of people opening their eyes and loan companies making it harder to receive a loan.

January 26 , 2007

[not manu] 26/1/2007 22:01

Looks like my post #689 was spot on.

sub 200p very soon

[gripfit] 26/1/2007 21:10

bottam line=t1t5 up for this share.......expect £2.00 (the price the directors last sold at) ,i am short big style,and may buy a sports car out of this.!!

[pogue] 26/1/2007 20:44

Not all people in debt have equity in their property. The reason they are in such a bad way is they have taken all the money out of their equity piggy bank to pay for their new lifestyle and now have run out of that plus have other debts so are now seeking help via debt companies.

[adeyberry] 26/1/2007 19:57

IVA's are only any good if you don't own your own property, which the vast majority of people do.

Those that do own, most likely have a fair amount of equity in their properties.....and if you call DFD and do a dummy run with them, telling them as such, all they say is you will have to remortgage your property to pay the debt off!!!

Not a lot of help really, if you are unable to do so due to your earnings, and even if you are, how long are you likely to be able to keep up the increased payments if you are already in financial trouble?!

The bubble in this sector was well bloated anyway on the IVA hype, but now the "needle of reality" has been inserted, the truth is coming to the surface!

[narindg] 26/1/2007 19:37

surely further f'd on monday!

[pogue] 26/1/2007 19:16

'The IVA market is slowing down because people are getting further into debt. One would think this would be a plus but it isn't. IVAs only work when debtors have the money to pay back but won't. The recent interest rate rises have forced even more debtors in the won't pay category into the can't pay category.'

and your proof for this belief?

[mercier et camier] 26/1/2007 19:02

The IVA market is slowing down because people are getting further into debt. One would think this would be a plus but it isn't. IVAs only work when debtors have the money to pay back but won't. The recent interest rate rises have forced even more debtors in the won't pay category into the can't pay category.

Leave this and all the other debt management companies alone. They'll soon be signing up to their own IVAs and worse.

[soho2] 26/1/2007 17:41

...and another warning from...DFD, although not as severe as ACG.

[matt7777] 26/1/2007 15:00

big dog - barrier to entry in the IVA mkt is the insolvency practioner - who has to be a qualified professional. Theres probably lots of these at college at the moment though !

ACG had been operating at the "sharp" end - not surprised to see some of the banks fighting back. DFD and DEBT as the serious / larger players I would imagine are on better terms with the creditors...

However, lower margins could be on the cards for all these guys, or at least a "fairer" split between up front costs (which eat up the first 9 months payments!) and annual commissions - thus deferring the break-even of the IVA

[sat69] 26/1/2007 14:22

This is just a short term blip - probably reversed on Monday. The last time I read an aricle on these in the FT, they could not cope with the number of enquires and had just opened another office to handle the high demand. Expect a huge upswing in profits in the next set of results.

[ok,yah] 26/1/2007 14:21

IG Index wont allow the short spreadbet :-(

[sahara] 26/1/2007 14:03

Just got in and saw my stop has been triggered just below my Fib support.

Tempted to get back in but might stay on the sidelines for the time being.

S.

[twentyoneeleven] 26/1/2007 13:30

Ozz, no definitely not, just laughing at the concept suggested by jpx101 with regard to Simon Cawkwell in post #709!!!

[the big dog] 26/1/2007 13:26

What are the barriers to entry chaps? Absolutely zilch! All the reasonably sized accountancy practices have a group of noggins who can undertake this work. S, why should the fact that they are quoted suddenly make them so valuable? Don't understand!

[ozzmosiz] 26/1/2007 13:24

Twentyone - was the O/T comment to me??

[twentyoneeleven] 26/1/2007 13:21

I think it is Ozz ... and you're completely right with your figures! A buying opportunity here IMO and with further IR hikes to come soon, this won't stay at this level for too long!

O/T "How's the Sola short going? Lol!!!

[ozzmosiz] 26/1/2007 13:18

With M4 Money supply printing at 14% a year, and wages only going up 4%, REAL inflation ~10% expect more indebtedness (is that a word)!!!

£1Million debt accumulating every 4 minutes!!

[jpx101] 26/1/2007 13:02

It's always reassuring to hear Simon Cawkwell speak as it means you still have a 50/50 chance. How's the Sola short going?

[simon cawkwell] 26/1/2007 12:42

Gentlemen,

Well what a surprise. You really don't say.

These IVA companies are just another example of nanny state regulated bodies which are thought to be intrinsically useful because they are thought economically to handle money.

We know better now. And some of us always did.

Simon Cawkwell