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Challenging Convention & Changing Attitudes

Convention is a single word with many meanings, so let me give it some context. In this instance I am referring to the fact that from my experience, when a borrower is under anxiety and stress from debt, they tend to resort to traditional insolvency solutions. It would be conventional thinking that if you cannot pay your debts you go Bankrupt…the team at GDP Equity Experts challenge this.

In recent times we have seen financial market correction on a global scale with lending institutions having millions, if not billions, written off their balance sheets. You and I bailed out some local banks that were considered “Too Big to Fail”, so the question is, why you or I should be “Too Small to Matter”. The fact is banks did not go Bankrupt when they were in difficulty…so why should you.

I read an article the other day by BBC Personal Finance Reporter Kevin Peachey about the rise of Personal Insolvency cases. The difficulty, when a reporter attempts to elaborate on a topic he appears to know little about, result is miss-information to the general public. I will spare his blushes for the most part but particularly he confirmed you are likely to lose all your assets and your home.

The important thing for me and the team at GDP Equity Experts is that borrowers need to gain a better understanding around debt, finance and money, in particular, how you go about dealing with it. Education leads to empowerment and it is only when you know all the options available to you will you be able to make a better informed decision for you and your family.

The fact is there are three solutions to any debt problem. Firstly you should consider Mediation, which involves making a private agreement and settling your debts with creditors outside of the formal insolvency processes. This process is based on your debt affordability and subject to personal circumstances. It is only after exploring Mediation would GDP Equity Experts recommend you consider the traditional Individual Voluntary Arrangement (IVA) or finally Bankruptcy as a last resort.

I appreciate it is difficult for people to stand up and challenge the “norms”. There is a large misunderstanding that people are and think all the same. This is nonsense and attitudes to this are changing. For example, in another recent article an official survey now shows more than 20% of NI households are private rented accommodation. This was only 10% a decade ago.

People’s attitudes have always been that it is conventional to get a job and get a mortgage. No asset you own in your lifetime, other than bricks and mortar, is as “safe as houses”. However, in this same survey the rise in private renting is more noticeable in younger age groups so attitudes are already changing in the local property market.

In 2004, just 16% of people aged between 25 and 34 were private renters, but by 2014 that had jumped to 47%. There has been a corresponding fall in the proportion of 25 to 34-year-olds buying a home with a mortgage, down from 66% to 35%.

NI continues to be the most affected region in the UK for Negative Equity but if you find yourself in Negative Equity the important thing to know is there are solutions available to you – don’t panic. GDP Equity Experts are currently helping people with over £250m of distressed debt and have achieved debt write offs in excess of £15m this year to date. Whilst impressive, it’s not about counting the write offs, it’s about making the write offs count and changing people’s lives.

So there’s nothing more to it, don’t do things just because that’s the way they were always done, lift the phone, talk to GDP Equity Experts for free and always ensure you get Real Honest Expert Advice.

Darwin AllenComment