Ways to get Debt Relief and Avoid CCJs
Have Monthly Repayments on Personal Debt Caused Money problems?
Apr 17, 2009
High interest on personal debt leads to high monthly repayments and money problems. According to the latest figures produced by the Citizens Advice Bureau (CAB), the average personal debt they assisted clients with during 2008 was £16,971; this is two-thirds more than in 2001. Finding a source of debt relief is a priority for the millions of families seeking to avoid a County Court Judgment (CCJ).
The Scale of Personal Debt and CCJ Problems
A County Court Judgment, also known as a CCJ, is a court order that is taken out against a person who hasn't fulfilled their personal debt repayment obligations. According to the Land registry, almost £3 billion in County Court Judgments (CCJs) were issued against UK citizens in 2008. The number of affected people rose by 4 per cent to 827,900; this is the equivalent to a shocking 2,262 CCJs every day.
Improved Budgeting to Prevent Money Problems
Families can balance household bills, avoid CCJs and achieve debt relief through improved budgeting. Try to get the best mortgage deal, reduce social expenditure, cycle to work instead of using the car, take a packed lunch to work or give up smoking. Cutting back on various day-to-day excesses can alleviate money problems and prevent CCJs as it leaves extra cash available to make monthly repayments and clear high interest personal debt.
Consolidate High Interest Personal Debt
Consumers with a good credit rating may wish to consider consolidating personal debts with an unsecured debt consolidation loan. This provides debt relief when existing sources of borrowing, such as a credit card debt, incur high interest. Debt consolidation helps families eliminate money problems, reduce monthly repayments and balance household bills. Don't turn unsecured debt into secured debt; instead get debt relief from a debt solution.
Debt Relief Through a Debt Solution
Families struggling with money problems, CCJs and unaffordable high interest personal debt will be able to achieve debt relief through a debt solution. Individuals with debts under £15,000 may wish to consider a Debt Management Plan (DMP) or a Debt Relief Order (DRO). Those with larger personal debts could choose an Individual Voluntary Arrangement (IVA) or personal bankruptcy.
Individuals struggling with CCJs, personal debt and in need of debt relief should consult a specialist debt advisor. A free debt advisory service will help a family to improve personal budgeting and balance household bills. Should improved budgeting not resolve money problems, they will also show how debt solutions can reduce monthly repayments.
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