Debt Solutions – Make your Move Part One
Debt has become a widespread issue these days, from mortgages to student loans there is a good chance that most of us have some form of debt. A sad fact indeed, but it’s becoming more and more commonplace now and many people have even embraced the idea that there is no point in saving money and have resolved to spend, spend, spend.
Should you fall into debt then there are luckily a lot of options, they vary much like the total debt you have. Some people may have a few hundred pounds worth of debt, whilst others in more serious debt have upwards of £25,000 of debt in total.
The solutions this article is going to go into are ones for people who are unable to fathom a way out of the debt money pit! Some are more extreme measures than others such as filing for bankruptcy, which I’ll say now is always your very last option. In fact in some cases you can forgo the need to file for bankruptcy and not be left with the devastating aftermath which can include Job loss, social stigma and rock bottom credit ratings.
A lot of these debt solutions are aimed at the mid to high levels of debt, since small amounts of debt can normally be solved by short term lending options such as overdrafts or Payday loans. So without further ado, here are a list of some options that may help deal with your debt.
Bankruptcy
It’s probably best to get this one out of the way, many people will have the idea that if you can’t make the payments on your debts be them from credit cards or loans then you need to either A, win the lottery or B, declare yourself bankrupt. This isn’t the case anymore, but we’ll go into this later on. Bankruptcy is for people who have large debt problems upward of £30,000 and have no realistic way of paying them off.
It can be done voluntarily which can cost £450 in court fees but in some cases bankruptcy can be filed against you, while rare they are very serious and may be unfounded. If you are served with a bankruptcy filing then you should seek professional advice as soon a possible.
The main problem with Bankruptcy is the social stigma that is attached to it, bankruptcy is reported in local papers with all your details and so can be a very embarrassing affair. Another side effect of bankruptcy is that you may lose your job or lose any business that you own as your assets and property will be liquidated. Being stuck with a rock bottom credit rating tops off the most unadvisable debt solution, however in some cases it is unfortunately all that people can turn to and can seem like the light at the end of the tunnel if you’re suffering from massive debts.
In the next part of this article I will discuss the other options you can explore when looking for debt solutions By: Andy Adams
Article Source: www.ArticlesBase.com
Andy Adams is an IT worker and experienced writer
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