When you look online for help and advice regarding debt management, a lot of North American websites recommend bankruptcy but in the UK, bankruptcy carries more serious consequences than it does across the pond. Wherever you are, it’s wise to avoid bankruptcy if possible but especially if you are in the UK, you should do all you can to avoid bankruptcy unless absolutely necessary.
Researching Bankruptcy and Alternatives
In Canada, for instance, a bankruptcy filing can take just nine months to be discharged. It could involve a fairly small monthly payment, a few meetings, and then be done with. In the UK, you typically lose your home (this isn’t always the case in countries such as the U.S), and if you owe more than £500, you’ll need to disclose your bankruptcy on job applications. Financial problems could become bigger problems if they prevent you from being gainfully employed!
Regardless of where you live, there are alternatives to bankruptcy. If you want to relieve yourself of debts, you may want to consider a debt management plan that involves credit counselling. In this case, you make arrangements with your creditors that are going to be easier for you to keep than your current arrangements. This can relieve some cash flow, help you continue to reduce your debt (even if slowly for a short time) and can stop harassing phone calls — giving you a chance to ‘breathe’.
Imagine being able to answer the phone again without worrying who is on the other end? Imagine being able to look forward to being debt-free in a few years? It is possible and getting help to renegotiate your debt repayment terms could be the answer to your problems.
Don’t let money woes get worse!
Too many people are struggling in the current economy. High unemployment rates, companies going bankrupt, people taking wage cuts, and other financial difficulties can make it difficult to manage your debt. There are helpful tools, services, and resources that can stop your financial woes from keeping you up at night, wrought with worry.
There are a lot of options available to those facing financial difficulty and in the vast majority of cases, your creditors would rather work with you than write off your bills as a bad debt. By looking at your options for debt management that’s actually manageable for you, you could be on the way toward happier, more financially secure times.
Get advice on debt management at Compass Debt Counsellors today. Visit Compass for a free consultation.
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