It states on the Gamcare web site that "Crippling debt is one of the most common outcomes of a gambling problem." Most are in denial that gambling debts are a major source of concern until finally hitting rock bottom. The afflicted don't just spend personal money, they will spend any money available. Credit card debt soon results in a consolidation loan. As soon as the credit card balance is cleared, it is quickly used up again.
How Much Constitutes Serious Debt?
It depends greatly on the individual, but it isn't uncommon for addicts to run up in excess of £100,000 of bad debts. One thing for certain, borrowing additional money will only serve to make the situation a lot worse. It is necessary to tackle the gambling problem and then deal with your gambling debts through a recognised debt solution.
Is Bankruptcy the Answer?
Bankruptcy was once the panacea, but the Enterprise Act 2002 has changed all that. Whilst it is possible to spend countless sums of money on foreign holidays and designer clothes, the law is not sympathetic to the plight of the addict.
The Bankruptcy Restriction Order (BRO)
Whilst the majority of people are discharged after a period of 12 months, accruing serious debt problems as a direct result of a gambling addiction or speculation means that a person can be held financially accountable for up to 15 years.
If serious debts have been caused by gambling, do not declare personal bankruptcy unless there is no other option. Be sure to explore the other debt solutions, such as an IVA or Debt Management Plan, before deciding to go down this route.
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement is a more flexible equivalent to bankruptcy. It allows a person with gambling debts to write-off their unsecured debts in just 60 months. Personal finances aren't scrutinised in the same way as bankruptcy either. Provided that the 60 monthly repayments are paid, the remainder of the debt will be written off.
Debt Management Plans
A Debt Management Plan enables someone to consolidate all unsecured debts and make a single payment from as little as £100 per month. The company used will deal directly with all creditors meaning that the debtor no longer has to.
Check To se If Any Unlawful Loan Agreements Exist
A number of loan and credit card agreements taken out to fund gambling aren't lawful. It is well worth getting a solicitor to check credit agreements to see if any can be written off as about 60% are not worth the paper they're written on.
Was All The Money Lost By The Card Holder?
Given the number of gambling transactions on statements it can be difficult to know which ones were actually made by the legitimate card holder. It is important to look through bank statements to see if it is possible to commence chargebacks for any fraudulent transactions.
Gambling can be a lot of fun for many people, but for about 3% of the population it can be a destructive hobby. Only the person can turn things round, but there are support groups willing to help. For further help and support, please visit the Gamcare web site.
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