MSE News: StepChange's debt research reignites calls for 'breathing space' scheme

MSE_Luke

Stark survey results showing the poor treatment of people in debt have reignited calls for a 'breathing space' scheme...

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'StepChange's debt research reignites calls for 'breathing space' scheme'

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sourcrates

Whilst i do agree giving people time to weigh up there options when in debt, is a good idea, I also believe a little "self education" can be beneficial also.

People do tend to rush into debt solutions, sometimes without taking unbiased advice on what really is there best option, soley because they are afraid of what the creditor might do, from recent posts on this forum, lots are under the impression that if you don't pay your credit card, or loan this month, they will have bailiffs at the door and be dragged kicking and screaming to a debtors gaol, when of course the reality is very different.

But a lot of people are still under this false impression.

To use an Americanism, Due process has to be followed, I think debt advice agency's in particular should try to alleviate these fears by telling clients that apart from a few letters and phone calls, little else will happen for many months, or even years, in respect to enforcing most of these debts, but as far as I'm aware, this does not happen.

This can lead to bad decision making, for example, using a DMC that charges fees, so the more breathing space someone has to think things through the better, but I also believe more could be done to alleviate people's fears of further action by creditors, and of course once someone has told there lender they are in financial difficulty, adding more charges is pointless.

I totally agree all accounts should be frozen from that point forward, mainly because it's a pointless exercise as usually at some point in the future, the debt gets settled for less than was owed anyway, creditors/DCA's just like to pump up the pressure.