The Myths of Debt
A few Myths of debt, and debt consequences :-
1) I will lose my home
No, in most instances creditors are very understanding if you get into dialog and let them know what is going on and that you are willing to work with them to find a solution.
2) If I am made Bankrupt or enter an Individual Voluntary Arrangement (I.V.A.) I will loose my job
No, not very likely, but certain professions are affect by these such as Financial Advisers, Judges, Bank Executive’s and a few more, but in the main your job will be secure.
3) I will have a criminal record or I may go to prison
No, debt is not a criminal offence unless fraud was committed at inception or you have really annoyed the H.M.R.C.
4) I will lose my business
Yes, you may have to cease trading, but you should be able to set up again as a Sole Trader virtually immediately.
5) Bailiffs will be calling to take all my possessions
No, not if you deal with these matters promptly and do not ignore letters and summonses this is very unlikely to happen.
6) I will lose my car
No, if your car is essential and we can get into dialogue early with any credit company this seldom happens.
These are just a few ‘Myths of Debt’, there are too many to list and they like ‘Old Wives Tales’, usually with no basis of fact or substance.
Remember that debt is like cancer; if you ignore it. It will only get worse!