Debt Sustainability For UK Individuals Post Covid19 Coronavirus

debt and covid-19

Because the government put a lot of the economy into a partial freeze to stop the spread of the virus, there has been winners and sadly some losers.

People with a guaranteed salary that work for the government or people in the private sector that have been furloughed have saved a lot of money not travelling into work each day.

Data shows that some peoples personal debts and credit cards have gone right down during 2020/2021 as people have had spare money to pay down debts.

People that are self-employed or individuals that contract through their own companies have burned through savings and retained earnings without any help from the government, while a lot of their fixed costs have remained constant.

Personal Debt for some people has spiralled out of control? 

For people that have had their incomes slashed or even cut to zero, credit cards have been used to pay for basics such as food, utilities, council tax and rent.

All too familiar for some people another trip to the ATM to pull cash out of their credit card so they can put the money in their bank to pay the monthly payment.

But eventually, these debts must be paid back or defaulted on.   But people don’t want bailiffs, judgements, threatening letters and other stress, they want a solution. 

Getting the right IVA Debt Advice can be key to living sustainably and paying your creditors off at a rate that is realistic for you.

Sure, the way you have conducted your debts will be stamped into the public record, but once you get to the stage of having 1 ccj, an IVA also is not the end of the world.

If you have no defaults and you can pay a CCJ within 30 days you could dodge bad credit, but many people who have credit problems already have at least one default, and as a result, are excluded from many mainstream lenders and credit products.

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