As personal debt continues to grow across the UK, with the level of unsecured debt… Read more »
Why you should always get debt advice if you are worried about money
Most people at one point or another have been worried about money. Whether it was worrying about how to pay the huge energy bill this month, money worries after redundancy or having to leave work due to ill health or something even more serious.
For some people, it is simply a case of a couple of tough months before things start to improve and bills are payable again. However, for others, it can be a sign of something more serious that can be difficult to get out of.
If you have money worries, you should always get free help from a professional and informative source. You should never have to suffer in silence and there are always people out there who can help and advise you on the best ways to tackle your money problems.
You may worry that getting in contact with someone will not help or push you onto a road you may not want to go down. However, debt advisors are always on the lookout for the best solution that will help you. They will listen to your problems, find out what you would like to happen and put together a solution that is going to sort out your debt problems.
There are some common misconceptions of what may happen when you get in touch with a debt advice service. These include:
Being forced into bankruptcy
A debt advisor should never force you to go into bankruptcy unless it is the best possible solution to your problems. If you don’t want to enter bankruptcy and it can be avoided, then another solution should be offered to you.
You could enter an Individual Voluntary Arrangement (IVA) or a Debt Relief Order (DRO) instead, if you meet the criteria of them. In some cases an informal Debt Management plan may suit your circumstances. No two situations are the same.
Bankruptcy isn’t the only solution to debt but alternatively, it isn’t a word to fear either. For some bankruptcy can give them a fresh start with a clean slate to go forward and try again, free from the shackles of debt.
My credit rating will be damaged
Contacting a debt advice service will not show up on your credit rating and will not affect it negatively. However, being in debt and not paying your bills will affect your credit rating. The best way to improve your credit rating is to deal with the debt you currently have.
A debt advisor can help regain control of your finances. Paying off your debts and paying on time will help to improve your credit rating and make you a more trustworthy borrower.
They can’t help me, I’ll still need to repay
If you can’t repay your bills or debts, your bank or service providers should pay attention to your concerns. IVAs or bankruptcy could be the solution to your problems in these situations.
Obtaining free, confidential debt advice can help you deal with repayments or how to deal with your debts. You may feel embarrassed about your debt problems, many people do, but all advice is non-judgemental and will remain in the strictest confidence.
My debts will affect my family and friends
Put simply, it won’t. Unless you have a joint account with a partner and the debt is on that joint account, then your debts will not affect anyone else. No one else will have to pay your debts for you and banks/providers cannot make that happen.
Even if you are married, your debts will not affect your partner’s credit rating unless the debt is on an account or loan you are both named and responsible for. However, it is worth keeping in mind, that not dealing with your money troubles can have an effect on relationships on your relationships.
Whatever your worries about your debts, they are not unfounded and they are very common. However, you do not have to deal with this on your own, there is plenty of help out there for you.