Online Calculator | Debt Can Harm Families

Debt Can Harm Families

Personal debt (of which a substantial amount is credit card and unsecured loans) in the UK stood at  a staggering £1,457 billion at the end of January 2010 and someone, somewhere, is declared bankrupt or insolvent every five minutes. These cold statistics don’t even touch on the full story or identifying the real casualties of debt.

All the latest studies show that being in debt can dramatically affect family life. On average, 78% of people surveyed say that being in debt affects relationships within their family and 75% say that being in debt has had a serious effect on their health. As many as 88% say that worying about debt keeps them awake at night. That situation is aggravated as the same surveys find that serious debt issues are often ignored for as long as nine months before something happens which finally triggers action. The cause of these epiphanies can include divorce, the threat of repossession or a visit from a bailiff, job loss or redundancy, or a serious health problem.

Because a lot of people’s knowledge of how to deal with a serious debt problem is virtually non-existent, when they do decide to go for help, many simply don’t know where to turn. Many look to the Citizen’s Advice Bureau, but this government funded and volunteer-staffed organisation is overloaded with work given the depth of the current credit crisis. Its advisers are dealing with more than 7,000 new debt problems every day. So, is there anyone left to turn to?

Families in debt desperately need timely, honest, straightforward advice. There are some less than reputable companies in market offering questionable advice with their own commercial gain uppermost in their minds. Guardian Financial Group and it’s sister company Credit issues have  been in the vanguard of preaching and practicing the very highest professional standards, regulated as they are by the Ministry of Justice and using their own, highly qualified, in-house legal team to ensure success.

In most cases there are relatively straightforward solutions to many serious debt problems. If the debt that’s causing concern is on credit cards or unsecured loans dating from before 6th April 2007, it may even be possible to have the amount totally written off! Credit Issues recently challenged a client’s credit card balance of over £16,000 due to inaccuracies in the administration procedure of the lending institution. The debt had been sold to a debt recovery agency when the client fell behind with his payments. A certain about of his debt was found to be covered by professional indemnity insurance also.  After examining the agreement Credit Issues was successful in removing the debt and was able to clear the entire balance.50. In the first three months of 2009, Credit Issues has contested well over a £1 million of consumer debt and is experiencing urivaled demand for its full on-site specialist legal team.

Other possible solutions may be as simple as writing to your creditors, using debt management or IVAs, debt consolidation or even bankruptcy. There is always an answer that can get your family life back to normal. Putting unsecured debts into a debt management programme can free up more income and let you start regaining control of your debts. The increasingly popular IVA route will leave you ‘debt free’ at the end of 60 months and a similar arrangement, called a Protected Trust Deed, is available in Scotland. If you run a small business that has been struggling and found itself in serious debt, your business insurance company may be able to help out with this.

You just need to know which is the best solution for you and be assured that the advice you are being given is correct, professional and effective. So don’t bury your head in the sand and choose to address your debt issues sooner rather than later. With a comprehensive plan in place and light at the end of the tunnel you’ll be able to get back to normal family life, free from worry and stress.

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