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Amigo loans posts 57% rise in profits

Couple in debt
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High-cost lender Amigo said adjusted post-tax profits climbed 40% to £47.2m in the six months to the end of September.

The company - which sells guarantor loans at 49.9% APR - increased revenues by 40% to £130.1m as it added 52,000 borrowers to bring its customer base to 207,000.

The recently-listed lender, which floated in in July, announced its first interim dividend payment of 1.87p a share, which will paid at the end of January.

'Breathing space' for indebted consumers
A scheme to help indebted consumers get time off from repayments is set to come into force next year.

Milestone for 'simpler' insolvency

Kevin Peachey

Personal finance reporter

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The Insolvency Service says it has issued its 250,000th Debt Relief Order (DRO) - a form of insolvency that is used by more women than men.

Introduced in April 2009, DROs allow people with debts of less than £20,000 and minimal assets to write off debts without a full-blown bankruptcy.

They have proved popular owing, in part, to the fact nearly all are granted within 48 hours, and debts are written off after a year. However, a DRO does not cover every kind of debt, and it stays on someone's record for six years.

Last year, 65% of these orders were granted to women.

Applications go through independent debt advisers. Many charities offer free advice and can explain the long-term effects of the various forms of insolvency.