Anyone who is, or ever has been, up to their eyes in debt will know the pressure and stress it produces.
Being in debt usually is not a result of our stupidity or others’ cunning. Nor is it likely to have been caused by irresponsibility or knowing recklessness on our part. Very few set out with the intent on becoming indebted.
A far more probable scenario is an unforeseen and unfortunate change in circumstances. Unemployment, reduced earning capacity, debilitating illness, an accident, divorce or bereavement are some of the factors which can throw a grenade into what was our lifestyle.
Anyone of these setbacks can affect our ability to service loans. Moreover, where outgoings are more significant than our income that is the start of debt problems. We begin to fall behind with mortgage repayments, for example.
That’s called ‘being in arrears’.
Property debt and mortgage arrears are a massive problem in the UK and usually lead to CCJ. Having a CCJ (County Court Judgements
) against you is a significant disadvantage in that it adversely affects your credit rating. Banks and loan companies use such information in deciding whether to give you credit or loans. This is going to create problems further down the line.
A CCJ remains on the Register of Judgements, Orders and Fines for six years, though if you pay the full amount within one month, you can have that judgement removed from the register.
If you pay after a month, you can get the record of the judgement marked as ‘satisfied’ in the register. While it will remain on the registry for six years, anyone checking will see that you have paid.
Property debts and mortgage arrears are non-statutory debts, the solutions to these problems tend to be debt management plans or informal settlements which – in the case of Get Help With Debt – are regulated by the Financial Control Authority
, the independent regulators of all reputable financial organisations in the UK.
Get Help With Debt website includes details of how and where you can get in contact with our team of experts who will be able to inform you of all your options and then, acting on your behalf, negotiate an agreement with your creditors.
Your representatives from the Get Help With Debt team will work out a realistic, best-case-for-you settlement proposal.
Occasionally – notably where there are other debts – this may result in an Individual Voluntary Arrangement
(IVA) being drafted by the Get Help With Debt team’s insolvency practitioners, operating with your permission and on your behalf.
They will then present this to all of your creditors.
Such a proposal is based on a realistic assessment of your ability or inability to make monthly repayments.
If the majority of those creditors accept this new repayment proposal – and, based on your representatives’ experience, skill and hugely impressive track record, that is the highly probable outcome – this agreement will become a legally binding contract, resulting in massive savings for you.
Instantly, your monthly repayments will be reduced dramatically, perhaps by somewhere between two-thirds and three-quarters.
Usually, an IVA runs for five years (60 months), after which any remaining debt is written off.
Whatever the route proposed, it will be the one which is best for you regarding getting your mortgage back on track – the number one priority in that it secures the roof over your head.