Debt Myths
When you’re facing debt problems, you need calm, expert professional advice instead of the unhelpful debt myths circulating both on the internet and in everyday life. You may perhaps have a sense that the situation is slipping out of your control, especially if you have dependents relying on your financial input. Common debt myths can aggravate this by misleading you. There are genuine legal debt options that mean that every situation has a calm solution. If you are having problems with debt, simply contact one of our expert independent advisers to gain some genuine help to end problem debts.
Most Common Debt Myths
In the meantime, here are just a few of the more common debt myths which might make people feel unduly afraid of dealing with their debts:
1. Myth: If you owe money you can’t pay back, you’ll have to ‘go bankrupt’
Reality check: There are many legal routes to end problem debts for good and bankruptcy is simply not inevitable in every case. Putting it in a nutshell, it’s not the only legally recognised response to problem debt. You can talk to Debt Options and ask which response is right for you. Other legal solutions include informal arrangements with creditors; a Debt Management Plan; and an IVA (or Trust Deeds for those in Scotland).
It’s true that for some debt problems, bankruptcy (or sequestration in Scotland) could to be the most appropriate route; however this is certainly not true for everyone. If it would be an appropriate way forward, again you can get calm professional advice on how to legally conduct your affairs to progress more smoothly towards ending the debts for good. Then you can begin carefully rebuilding your credit score.
2. ‘Everyone’ will find out you cannot repay your debts
Reality check: Since there are types of debt problems, there are many types of debt solutions. You will find some of them can be legally conducted on a relatively private basis. Debt Management Plans and IVAs (or Trust Deeds in Scotland) certainly have this advantage.
3. You have to live on a drastically low budget until the debts are fully repaid
Reality check: Within all legal debt options there are rules which should ensure your reasonable living expenses are met before any money is set aside to repay creditors. Some allow for repayments during a certain fixed time period. For IVAs or (Trust Deeds in Scotland), if the applicable terms and conditions have been kept to, the unpaid balances are written off at the end of that time period. This means you will be debt free even if the debts aren’t fully repaid.
Reality check: Since there are types of debt problems, there are many types of debt solutions. You will find some of them can be legally conducted on a relatively private basis. Debt Management Plans and IVAs (or Trust Deeds in Scotland) certainly have this advantage.
These are just three of the many debt myths which can stand in the way of people taking safe, legal actions to end their debt problems. You will need professional support to enter and complete these options, but it needn’t be a daunting process. Our advisers are courteous professionals who are here to guide you through which solutions would work best for you.
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