Other Debts
If you are facing a less common type of debt, perhaps as the result of falling behind with child maintenance payments or maybe due to divorce, you might be wondering how to deal with the situation and where to go for professional help.
Our team at UK Debt are committed to helping people in debt, whatever form it takes, and have extensive experience of finding the best solution in all circumstances. Here we look at some of the less common debt areas that can cause extreme financial hardship if they are not addressed in the right way.
Secured loans
Secured loans are priority debts, which means if you fall into arrears, with your mortgage for example, you need to contact your lender as a matter of urgency. Your home can be repossessed by the mortgage provider if you do not meet your contractual obligations, but you may be able to negotiate lower repayments or a payment ‘holiday.’
Fast and open communication with the lender is key to dealing with secured loan arrears – it shows that you want to remedy the situation and that you are not simply avoiding payment for no reason.
Gambling debts
If you are in debt because of gambling or betting, you may be facing a financial crisis that seems impossible to deal with. Maybe creditors are hounding you and threatening legal action if you do not repay, or you are getting ever deeper into debt with no clear way to escape the situation.
Our licensed insolvency practitioners have specific experience of helping people with gambling debts to get their finances back on track, and offer actionable, reliable advice you can trust.
Divorce debts
Debts arising out of divorce can quickly spiral, and easily create a financial crisis as you attempt to adjust to a new life situation. Ongoing legal fees and unexpected financial liabilities can cause untold distress, but our team of debt experts can help you regain control of your finances.
We will arrange a free consultation to assess your financial position, and explain all the available options in detail so you understand the ramifications of each before proceeding.
Utility debts
Ever-increasing utility costs are forcing more and more people into debt with suppliers of gas, electricity, and water. Getting behind with your utility bills can result in your main household services being cut off completely, so it is vital to communicate with your provider as soon as possible.
If you explain your financial position, you may be able to negotiate lower payments or an extended repayment plan to incorporate your arrears. Simply informing them of the situation is a good initial step, however, and your proactive approach may encourage their co-operation.
Child maintenance debts
Getting behind with child maintenance payments can mean arrears are taken directly from your wages or bank account, as the Child Support Agency (CSA) or Child Maintenance Service (CMS) take enforcement measures to collect the debt.
It is important to contact the CSA or CMS when you miss a payment, as they may be willing to arrange an instalment plan to recoup their debt.
Payday loans
Payday loans attract high rates of interest and it is very easy to enter a debt spiral if you miss even a single payment. When your payday loan is in arrears, you are likely to experience intense creditor pressure, so it is important to seek professional assistance in dealing with the situation.
UK Debt can advise on dealing with payday loan arrears and other forms of debt. Please contact one of our licensed insolvency practitioners to arrange a same-day consultation free-of-charge.
