13 May 2014
May 13, 2014

Wallflower of Debt

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The wallflower of the debt world is the person who can’t come forward and ask for help when it’s most needed – they are too shy, scared or worried about the impact of debt on their family, friends, work colleagues and credit file. The truth is that the situation often can’t be changed unless the first steps are taken, which is to come forward and say “I have a debt problem!”

Scared About Debt

There has never been a person who says they want to be in debt, because it just doesn’t happen. The truth is that people get into a debt situation because of a number of different issues. These issues vary from being to over reliant on credit cards through to the death of a partner leaving them in financial difficulty.

Most people are scared about being in debt and as such put their head in the sand. They don’t open bills. They don’t answer the phone. They won’t even open their front door to their house in case it’s a debt collector.

This fear is known to cause mental health issues and means people become introvert and secluded from society. They don’t want to ask for help or talk to friends and family either. The fear of debt debilitates a person’s ability to live a normal life and pushes them towards being excluded from normal society.

There are some debt solutions which can help people resolve their money worries in England, Wales, Northern Ireland and Scotland. These debt solutions include a Trust Deed Scotland, IVA, Debt management or bankruptcy.

Different Debt Solutions When Scared

Taking the first step to resolve debt problems when you’re scared means being brave enough to ask for help. This can come from friends, family or from a debt organisation. The best option is to seek help from a charity which offers experienced advice and support. They can explain which debt solution would be best for you. These debt solutions can include:

Trust Deed: 4 year debt solution paying back what you can afford. Remaining debt will be written off at the end. Your house equity may have to be released but usually your house is safe.

Debt Management: You repay all of the debt but over a longer than usual period. The interest and charges are not guaranteed to be frozen but some creditors will stop these charges to help you repay the money you owe.

IVA: A solution only available in England, Wales and Northern Ireland lasting 5 years with any remaining debt being written off.

Bankruptcy: There are different routes to go bankrupt but it will fix any outstanding debts. People in employment or with a house/ asset should be wary of this solution.

Be aware that all debt solutions will affect your credit file and place a default on your account for 6 years.

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