Realities Explored with Debt Myths

Realities Explored with Debt Myths

July 23, 2019 0 By Chowdhury Shahid-uz-zaman
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For many people in the UK, confronting debt it is a difficult, challenging issue. With much misinformation swirling around online, how do you sort the debt myths from the hard facts? Here are the top five myths which could be getting in the way of the realities.

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A Little Myth-Busting

”I Have to Pay for Debt Advice”

In fact, there are lots of services which offer advice for free. The National Debtline is an independent charity run by trained counsellors, and has a free, confidential helpline.

“The Quickest Way out of Debt Is to Go Bankrupt”

Bankruptcy is no quick fix. With paperwork, court hearings and financial assessments to go through, this can be a traumatic and prolonged experience and you could be tied into an Income Payments Order for years to come.

“My Debts Will Be Wiped off in Six Years If I Ignore Them “

Don’t bury your head in the sand. This myth stems from the Limitations Act which suggests denying your debts will mean your creditors have to drop their claims after six years. Unfortunately that’s just not true.

“Making Minimum Payments Is a Good Way to Clear My Debt “

It may be the only way you can manage, but paying just the bare minimum means you’ll barely be servicing the interest on your debt. It’s best to pay as much as you can, as often as you can if you want to get clear, but do seek guidance from an organisation like Citizens Advice if you’re not sure of the best way to proceed.

Government legislation can write off debt

Sadly there’s no law to write off all your debts. The only way to write it off is with an Individual Voluntary Arrangement, or IVA. Under this system you can make a lump sum payment or staggered payments through an insolvency practitioner, giving you a tailor-made repayment plan. Rising debt is causing more people to ask for help in an attempt to clear debts in a more structured and manageable way. Some people are even having to sell their belongings or even move house to smaller properties or cheaper areas.  If this is the case they will need a Bristol Removals Company at sites like www.imoveremovals.co.uk to help them move their items.

Knowing Your Facts is Half the Battle

Debt can be frightening at the best of times, without all the myths which muddy the waters. It doesn’t have to be – simply by knowing the facts, you’re already well on the road to recovery.