Debt FAQ

How many people are facing bad debt problems?

Unexpectedly, in the United Kingdom there are hundreds of thousands of citizens having debt problems due mainly to taking on loans and credit cards they can't afford to repay. So, you are not alone.

Will my credit rating be affected due to bad debt?

Yes, it will definitely be affected. Whilst you are repaying the debt you will possibly be unable to get into more debts from any creditor who uses credit checking before giving loans. Creditors will know that you haven't paid your debts and will stop giving new loans.

Who can help me to clear my debts?

You can find a lot of companies that will provide you debt advice as well as practical help. It depends on your financial and debt situation to what kind of help you are required to get. Debt management is a good option.

May I lose my home due to non payment?

Your property repossession is possible only when you are unable to give the mortgage payments or any dues on loans that are secured. That is why it is important for you to pay your mortgage and secured loan payments, regularly. If you miss only a single payment on your secured loans, then your home or car *may* be repossessed by the creditor.

If your loans are not secured loans then property repossession will not happen immediately. But, we advise you that you get professional debt consultation to get debt help as early as you can.

How much time is required to clear all my debts?

It depends on the debt amount and how much can you fund to your debt management plan. If you can pay consistently to your debt management plan then you can clear your debts in a shorter period of time. Usually it takes about 60 months to clear most peoples' debts.

What are the fees of getting help for clearing my debts?

It depends upon the method that is used to get you out of your debt problem. One important thing to tell you is that you should first ask your debt counselor the charges for providing debt management help.

Can being in debt terminate my job?

Generally no, you may not lose your job for being in debt. However, you can find some employers who make it obligatory in the employment contracts. It is better to check your contract to know whether there is any clause in it or not.

Who needs to know about my debt issue?

Debt is a confidential issue between the client and his lenders unless he chooses the bankruptcy option. Otherwise, you are not bound to tell anyone about your financial situation. However, you should share everything with your financial advisor.

Will bailiffs come to my house?

Yes this is possible. It usually happens when you ignore your debt issues. The visit of bailiffs is usually to contact you and remind you about your dues. However, if you don't ignore your debt problem and get advice from financial experts, this stage will not come. An IVA will legally stop creditors harrassing you with letters, phone calls and bailiffs - apply here