debt help uk questions answers advice information

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How do I go about getting debt uk help? - There are many different organisations that offer debt advice and practical help. The help you need will depend on your individual circumstances. Look here for choosing the right solution for you. Look here for details of organisations who may be ably to help you, depending on your need

Will I lose my house? - property repossession will only normally occur if you do not maintain your mortgage payments or any payments on loans which are specifically secured against your property. For this reason it is vital that you maintain your mortgage and secured loan payments over and above any other debts. The only other way that property repossession could occur is if you are declared bankrupt. However, this may not be automatic. If you have started to miss mortgage or secured loan payments, do not panic. Property repossession does not happen overnight. However, you should obtain advise as soon as possible.

Will I be able to get a mortgage or credit in the future? - Yes – there are companies who will even lend you money whilst you are in debt, however this is normally not advised and must be carefully considered. Once your debts are cleared, you will then have the freedom to borrow again as normal.

Do many people get into debt? - Yes. Surprisingly, hundreds of thousands of people in the UK today have debt problems that they cannot support, for many different reasons. Look here for some other people’s debt stories

How long will it take to get out of debt? - This will depend on how much you owe and the solution you use to manage the problem. If you are involving a 3rd party for help, i.e. a Debt Management Company, always ask how long will it take to be free of the debt.

Will bailiffs come to my door? - It is possible bailiffs will come to your door if you ignore the problem and a visit is the only way to make contact with you. If you take proper and advice and get help then there is no reason for it to get to this stage.

How long will it be before I can borrow more money if my credit file is affected? - With unsecured lending e.g credit cards and loans etc, you will not be able to borrow until the original debt or agreed amount is paid in full. With secured lending e.g mortgages, car H.P agreements etc, you may be able to borrow on this basis but it is not always advised. It is advisable however if it is part of a debt repayment plan (i.e re-mortgaging your house to realise some equity to repay your debts)

What action can creditors take against me? - Firstly creditors will write to you and/or telephone you demanding payment. (They may charge you for late payments and administration fees). They may also freeze your account in debt (bank, catalogues, store-cards etc) so that you cannot use it anymore. If you have not paid after being chased, then they may issue a default notice. If you still haven’t paid then they may involve and external debt collection agency. The debt collection agency will write and/or call you to chase the debt and they may charge you for this. They may threaten you that your credit file will be affected and they may also threaten to take you to court.

If after this you haven’t paid then your account may be passed to a solicitor who will also chase you to pay the debt. The solicitor may then initiate proceedings to issue a County Court Judgement against you. If you still haven’t paid after the issue of a CCJ then the court could contact your employer and get an “Attachment of Earnings” order, which will deduct payments directly from your wages. You can appeal if this deduction is too high – details of how to appeal will be provided with your notification from the court.

What are the main types of debt? - there are basically two main types

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