Such a direct question as ‘Does debt forgiveness really exist in the UK?’ deserves an equally straight answer.
So, in a word – ‘yes’.
There is debt forgiveness in the UK. That is a fact of life which has offered hope to tens of thousands who feared they might never recover from the financial mess in which they found themselves, often through no fault of their own.
All sorts of people are trapped in all sorts of debt for all sorts of reasons. That, too, is a fact.
Changes in circumstances can de-rail people who are totally innocent of having taken rash decisions or made high-risk calls.
A great many of those in debt in the UK are victims of unemployment, a reduction in overtime opportunities – and, with that, of course, reduced wages – sickness or an accident necessitating time off work, bereavement or divorce.
Debt on secured loans – those for house purchase or a new car, for example, plus those which are underwritten by a guarantor – offer lenders security.
But debts on unsecured loans – credit cards, store cards, personal loans and student loans, for example – offer no such security to the lender/creditor. That being the case, interest on unsecured loans are higher, making them a more expensive way of borrowing.
As with any loan agreement, everything is fine so long as the borrower is able and continues to make repayments, in full and on time.
But where there is a change in circumstances as a result of any of those reasons listed above, the borrower’s ability to keep meeting such commitments is affected.
The result? Debt.
The fact that you have visited the Get Help With Debt website is a pretty clear indicator that you have – or someone close to you has – just such a problem.
So you probably want to know if there is any way of avoiding your financial demise?
Again the answer is ‘yes’.
Even if you are unable to pay off all your debt you should – with the help of experts who know how to resolve such issues – be able to satisfy your creditors’ demands sufficiently to protect yourself, your family and/or your business and safeguard your/its future.
How does debt relief work and why would creditors be willing to settle for a one-off payment or a series of lesser payments over a re-negotiated time period?
Debt relief is a self-explanatory term made up of two words.
‘Debt’ means something – usually money, but sometimes goods or services – owed to another.
‘Relief’ means deliverance from or alleviation of (pain, stress, anxiety etc).
Basically, debt relief means re-organising debt in order to provide those to whom the debt is owed with a measure of relief, either fully or partially, from a huge debt burden. The fact that this also comes as a relief to the debtor is another plus.
If they are to accept a debt relief proposal, creditors must see that the repercussions of debt default by the borrower or borrowers are likely to prove so severe that mitigation is a better alternative.
It’s that old ‘half a loaf is better than no bread’ adage.
Individuals, small businesses, large companies, municipalities and sovereign nations can all pursue – and benefit from – debt relief.
How does debt relief work?
It works as a result of each of the parties involved accepting the reality of things as they are.
In-house experts working for Get Help With Debt clients assess and then present their case – their reality – to the creditors in a manner which lays bare all the facts of the matter.
In layman’s terms, this entails identifying priority outgoings to see what remains once those have been subtracted. Initially, then, debts are left aside.
What constitutes priorities?
You need a roof over your head, you have to eat, you have to clothe yourself and you have to run your car to get to and from work where you earn your income.
Being subsistence-level essentials, those come off the table straightaway as non-negotiable.
So if you earn £2,000 per month and your mortgage is £600, your food-clothes-household bills total £800 and the running costs of your car come to £200, that leaves a post-essentials figure of £400.
That is the maximum amount which, realistically, you can pay to your creditors per month.
So it is less a case of what those creditors are owed, as of what you can pay them.
And that is the basis of finding an agreement whereby debt relief is achieved in the interests of all the parties.
Contact the Get Help With Debt experts and let them work on your behalf in reaching an agreement which is workable for you and acceptable to those to whom you are indebted.