Thanks to all of you who joined in Bank of Mum & Dad's live "Ask Chat" with Lawrence Gold and financial advisor Michael Brill. If you missed it, here's what went on...

BBC_Host - Hello, and welcome to tonight’s Live Ask Chat with Bank of Mum & Dad's Expert Lawrence Gold and Financial Advisor Michael Brill.

Jase - What's the first thing you should do when you realise you have debt problems?
Lawrence: You've got to face facts. Start by working out your income. Sort out essentials such as gas, etc. Make sure you have enough for essential bills and ignore non-essentials and then work out a budget and stick to it. Be brutal and don't exceed your budget.
Michael: Contact the people you're in debt to and let them know your problem. Then stick to the arrangement you make with them or you'll end up in court.
Lawrence: Being upfront is best you can do.

T-Boz - What happens if I file bankruptcy?
Michael: I would suggest you see a solicitor or accountant who specialises in bankruptcy. You'll be looked at to make sure you live within a certain budget. It will be in the local press. I think you definitely need to go and see a specialist in the field though as it's not something you should take lightly.

Liesauk - What would you advise someone with high outgoings the first thing to get rid of?
Lawrence: It comes back to non-essential things. Be brutal. It's your lifestyle definitely, because if you don't curb that, your costs will go through the roof. It's very easy to go into debt situations because banks throw money at you. It's more difficult to say no to money. Cut up the cards and concentrate on repaying your debts.
Michael: If it's your mortgage that's in arrears, sort that first.

Payday - What is the best way to pay credit cards off? i.e. (loan to pay the whole amount or monthly).
Michael: It depends on your financial situation and it depends on interest rates. If you're paying a zero rate then it's cheap to pay monthly but if you're paying interest it must be prudent to pay it all off quickly. The best short-term loans are nought percent interest rates on credit cards, then overdrafts (authorised) followed by personal loans.

Pound Foolish - How can someone with limited income get so heavily into debt? Don't the credit card companies vet people before giving credit?
Lawrence: Supposedly. It's just too easy to get credit. An 18-yr-old client of mine applied for card, he had learning difficulties and his mum rang the bank telling them he couldn't pay the money back. He got to keep the card and now he can't pay back the amount he owes. That's problem with credit cards being so easy to get.
Michael: I agree, it's far too easy. They should do a study of people's outgoings and income. You'll know that Lawrence, working in a bank - do they check income?
Lawrence: Do they check income? I don't know, I remember working in a bank and at that stage they would give credit to anyone.

Dave - I have about £7,000 of debt but I have avoided paying by moving and not giving my new address, how do I pay it now I have realised how much of a problem it is? I can't afford to pay it back due to minimum pay by my employer and food rent etc. PLEASE help.
Lawrence: I think all he can do is phone the people he owes money to and try to come to some arrangement. It's better than doing nothing as he could end up in court.
Michael: He shouldn't shy away from it. They'll find out eventually.

Josh - If I want to speak to an independent financial advisor how do I find a reliable one?
Lawrence: Go to the SOFA website - they are all fully qualified independent advisors. They've applied for the Financial Planning Certificate, so you know what you're getting.

Kerosene - My outgoings are now more than my income due to my monthly wage being reduced. I contacted the Consumer Credit Counselling Service to see if they can help. Is this the right step?
Michael: Yes, if you haven't got confidence to talk to the people you owe money to.
Lawrence: Also you can try the Citizens' Advice Bureau.
Michael: They'll be fair and honest because they have no conflict of interest.

Aviz - So far, Bank of Mum & Dad has always been able to work, but have their been cases where the person in debt have not listened to help & advice?
Lawrence: Out of the programmes we've done so far, there's one guy who hasn't listened. If they don't listen they're putting their head in the sand. If you're being given good advice, please, please listen. So many people are in debt we need to turn it around.

Pound - I'm renting a flat at the minute but want to buy within the next 12 months. What is the minimum % deposit required?
Michael: There are some companies who will do 100 per cent mortgages, but your credit must be clean and things must be right. You can also get 95 percent, but the lower you go, the more choice of a good interest rate you get. Seek independent advice if you're not sure.

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