Did you know that there are thousands of people all over the UK who are in debt? It is a very common problem, especially as we are still in the ‘triple dip recession’.
Many of us make the mistake of burying our heads in the sand when it comes to our financial worries, which often makes the problem worse. You may realise that the longer you leave your debts, the bigger and more stressful they become.
When you’re facing debt problems, common debt myths can add to the stress and make you feel unduly afraid of dealing with your debts.
Below are some of the most common debt myths answered by our experts.
1. Myth: I don’t want to seek help, I am afraid to find out that I won’t be able to repay my debts.
Fact: There are many different types of debt problems, with many different types of debt solutions to suit. These includeDebt Management Plans and IVA’s (Individual Voluntary Arrangement). Speaking to a debt solutions provider will help you to understand what solutions are available to your circumstances and talk you through the options available.
2. Myth: If I enter into a Debt Management Plan or an IVA I will be ‘blacklisted’or will be unable to take out credit again.
Fact: The only way to maintain an excellent credit rating is to keep up with your contractual payments. If you do find you have missed payment, been issued a default notice, CCJ or entered into an IVA, these will only appear on your credit score for a period of 6 years, after this time you will need to rebuild your credit rating.
3. Myth: I’ll have to live on a drastically low budget until my debts are fully repaid.
Fact: With all debt solutions, there are rule and guidelines in place. These are called the ‘Consumer Credit Counselling Services (CCCS) Budget Guidelines’ and are there to ensure that all of your household bills and living expenses can be paid as a priority before calculating how much you can reasonably afford to pay back your debts.
Our Debt Calculator is a useful budgeting tool and will help identify if you have any surplus cash to offer to your creditors.
If you find that you’re struggling to stay on top of your debts, you should speak to financial solutions provider who can advise on the best solution for you.
At The Debt Advisor, we are passionate about helping individuals back on their “financial feet” and our advisors have been expertly trained to talk you through the options available.We are membeers of The Debt Resolution Forum and are regulated by The Financial Conduct Authority no 606669.
