Gambling involves taking chances and in many cases, the outcome is not positive. Whether due to one unlucky break or gambling that becomes a habit, many UK consumers find themselves with gambling debts.
In the UK, these debts owed directly to the other party to the gambling might be considered debts of honor and therefore might not be enforceable in court. Though it is not illegal to gamble on credit, a casino or bookie might not be able to use the law to enforce repayment of a debt incurred in such a manner.
The same isn’t true for conventional lending sources from whom you’ve borrowed to fund gambling
What begins as lack of money to spend on household expenses like food and utilities can quickly grow into severe debt that may lead to bankruptcy. Some problem gamblers even turn to more permanent solutions such as suicide when they see no other way to repay their gambling debts.
It can be easy to lose control of money through excessive gambling so quick action is required to prevent the situation from getting worse.
People who are facing bankruptcy due to gambling debts accrued via conventional credit sources should stop gambling immediately if at all possible. They must take responsibility for their gambling and the debt it created.
Getting assistance from a debt expert and someone who can help break the gambling habit is recommended
A network of trusting and supportive people will make the transition away from gambling and out of debt much easier. The process may involve destroying credit cards or asking a trusted person to temporarily hold these cards.
Gamblers Anonymous is an online UK resource for beating a gambling addiction. Only after a gambling problem has been addressed can another expert truly help in a long-term sense with the accumulated debts.
If former gamblers are committed to debt repayment but cannot do this at the requested rate, they should consult with a debt management professional. This individual will provide various ways to handle the financial aspect of the problem based on the type and amount of gambling debts amassed.
Gambling debts on loans, credit cards, and overdrafts can be handled in the same way as other forms of debts
However, if the debtor goes bankrupt, a Bankruptcy Restriction Order (BRO) may be issued where the behavior is judged to have been reckless, placing the individual under bankruptcy restrictions for longer than the typical 12-month period.
If the debtor attempts to place bankruptcy debts into an Individual Voluntary Arrangement (IVA), creditors could reject the IVA proposal on the basis that the debts were incurred by gambling. However, debts derived from gambling are often included in successful IVAs so don’t be discouraged from this alternative altogether.
Prevention is the best approach when it comes to gambling debts. Preventing gambling losses from turning into debts keeps them from affecting the financial status of the gambler. Many people say that avoiding gambling in the first place is the best approach.
People who cannot resist a wager should be responsible with their betting to avoid accumulating gambling debt.