The downside of being under administration

A Fin24 user is under administration and wants to get his life back on track. He writes:

I have been under admin for some time and I believe that I have paid what I owed.

My life is at a standstill and my lawyer is not really helpful.

Deborah Solomon of The Debt Counselling Industry (DCI) responds:

You are entitled to monthly statements and proof of distribution. If this is not occurring this needs to be demanded.

You need to get a full history from your attorney.

Many consumers under administration don’t realise the monthly costs involved and interest that is increasing.
 
Administration is one of the hardest forms to repay a debt as on many occasions the interest rates are not lowered and the consumer's monthly repayments don’t even cover the interest portion, never mind all the monthly administrators fees.

I would suggest that you speak to all your creditors directly, obtain balances directly from the credit providers.

From these statements, either makes a call to repay your creditors directly or move over into debt review, if there are still large outstanding balances.

Debt review will be a far cheaper option than remaining under administration in the long term.

Reckless lending can be investigated as well as the potential lowering of interest rates, for example in duplum being applied.

- Fin24

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