“There are many unscrupulous lenders out there looking for ways to exploit vulnerable people in debt” says Paul Shepherd, Debt Advice Manager at Northamptonshire-based Community Law Service. Here, Paul warns people to think carefully before being tempted by the hard sell of IVAs (Individual Voluntary Arrangements). He urges people to get in touch for free, impartial advice before things get critical …
Debt can be worrying and its implications can be life-changing.
My team and I receive dozens of calls a month because people have had a bailiff come knocking at their door. That’s when things get real and quite honestly, scary. Our debt team want to help people before it gets to crisis point. We want to ‘stop the knock’ – which means helping before the bailiffs are on their way.
If it seems too good to be true….it probably is
Unfortunately there will always be a section of the lending market that is looking to make money out of people in debt – people who are most vulnerable and in need. We’ve seen it before with pay-day loans, door step loans and guarantor lending. The latest trend in IVAs is no exception. Individual Voluntary Arrangements (IVAs) consolidate debt to vastly reduce monthly repayments – a very appealing solution if you are struggling with your monthly expenditure. But this quick fix has a long-term sting. People get locked into agreements for as long as six years with astronomical fees.
Whilst for a small few, these arrangements may be the answer, in most cases it compounds the problem further down the line.
There is always another way
It takes courage to ask for help. Many people struggle on in the hope that things will somehow turn a corner, or they resort to signing up to agreements such as IVAs to alleviate short-term pressure. But there are always other solutions to consider. For example, a Debt Relief Order (DRO) is a possible low cost alternative to an IVA – no crippling fees and no multi-year lock in arrangement.
We passionately believe that people deserve impartial, expert advice so they understand their choices and make informed decisions.
Local people helping people locally
We are local, on the ground. I have been working at Community Law Service since 2011. My team and I meet people right across the county – from Kettering to Corby, Wellingborough to Rushden, Daventry and Northampton. There really is nothing we haven’t seen or heard before.
In 2023, clients accessed us at 11 outreach venues across the county. This year, thanks to our increased work in the community, we are now working out of 22 outreach venues, plus our own three offices; Hazelwood Road and The Guildhall in Northampton and Midland Road (within the Carers Association) in Wellingborough.
We unravel the root cause by taking time to get to know each individual
Our teams offer free and impartial advice on matters in housing, welfare benefits, fuel and energy, and immigration. Quite often debt goes hand in hand with a problem in another of these areas.
When clients come to us, they are assigned a case worker who will be by their side for the duration. Debt relief cases can often be long and complex, but we feel it’s important for clients to have the same person looking after their case until it gets resolved.