Why you shouldn't ignore debt

23 May2021

If you repay debt more quickly, it'll normally cost you less, because you'll pay less interest. If you ignore debt, interest can grow and maybe you'll be fined late payment charges. When penalties and interest are added to a debt, it can begin to snowball.

You're always going to have to pay debt back - even bankruptcy doesn't usually write off debt completely and can only deal with unsecured debts. Ignoring a debt problem won't make it go away and you could be sinking further into debt at the same time.

How a debt management company can help

A debt management company could deal with your lenders for you. They could potentially stop your lenders from taking further action against you. They could help you to plan your route out of debt and bring it back to an affordable level.

Click here to try the debt solution finder and a debt adviser will call you back.

How debt can affect people

Many people report feeling anxious if they have a lot of debt. Many people feel they have less job security while unemployment is high. Debt can affect health, relationships and confidence.

If your debts are bothering you, speak to a debt adviser about your options. While they cannot offer counselling, you might just find dealing with the problem makes you feel better.

Many people in debt don't like to be contacted directly by the people they owe money to and can feel harassed when they're unable to repay. If you are bothered by your lenders contacting you, ask a debt management company to contact them for you.

The burden of debt

Besides the obvious financial burden of interest and financial penalties, debt can hold you back in other ways too.

Try to find help and support from someone you trust, which can make a big difference to how you feel about your debts.

An IVA or bankruptcy can affect your career - some employers run a credit check before they'll offer you a job. This is more likely if you work in the financial sector. People with a history of bankruptcy, or an IVA (Individual Voluntary Arrangement) cannot work in certain professions. If you think your career could be affected by your debts, speak to a debt adviser.

When a debt is finally repaid, people often report a sense of relief, but even just beginning a debt solution can bring a sense of relief, because it means you're dealing with a debt problem head-on.

Apply for debt help here.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
We'll give you an on-screen recommendation and call you. One of our advisors will be in touch to answer any questions you may have about your results.
Your privacy is important to us. All correspondence is held in the strictest confidence and we will only request information required to find your debt solution.

Related resources

Tags: debt, debt management, bankruptcy, unsecured debt, IVA, Individual Voluntary Arrangement

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