One of the easiest forms of debt to secure and with some of the highest interest rates, unsecured debt can quickly spiral out of control leading to increasing pressure from your creditors.
Unsecured debt is any money which has been borrowed which is not attached to a specific asset such as property or a car. Unsecured debt includes some of the most common forms of borrowing including:
Unsecured debt covers the vast majority of debt (excluding mortgages) in Northern Ireland. While it may be tempting to put money worries to the back of your mind, debt has a habit of growing and getting worse if ignored. Unfortunately this is particularly true when it comes to unsecured debt. This is because the interest rates attached to this form of borrowing are typically higher in comparison to secured forms of lending such as mortgages. If you stop making your payments for any reason, interest will continue to be charged and added onto your balance, not to mention the various other fees which are likely to be imposed for late payment; this can see the amount you owe quickly spiralling out of control.
Typically unsecured debt is easier to obtain, as there are less stringent credit checks and income requirements during the application process. This makes it surprisingly easy to accumulate a number of debts over a relatively short period of time.
As unsecured debt is not tied to a particular asset, you are not at risk of losing your home if you are unable to pay back the money owed. However, if you are not making your regular payments, the company you owe the money to will want to know the reason for this, and will do all they can to recover the money owed. This often takes the form of regular letters and phone calls, or your debt may be passed over to a collection agency who often employ more frequent attempts to collect the money; this can be a particularly distressing experience for the individual involved.
If you are in this position, is it vital that you tackle the situation head-on and try to come to some arrangement to clear the debt. This may involve negotiating a payment plan with your creditors via a DMP, or a more formal arrangement in the form of an IVA. Should your debt problems be particularly severe, you may want to consider opting for bankruptcy in order to give yourself a fresh start. Whichever option you chose, you need to be sure you are doing the right thing for you and your situation. Contact our professional advisers today and take the first step towards a debt free future.
After losing my job, I started relying on credit cards and payday loans to get me through the month. As the debt build up, I found it increasingly difficult to keep up with the monthly payments and was hit with late penalties and added interest which only made the problem worse.
I was ignoring letters and phone calls, and dreading knocks on the door fearing it was bailiffs. This was when I knew I had to seek expert advice. After contacting Northern Ireland Debt Solutions, I felt an immediate sense of relief. Within a matter of days, the phone calls and threatening letters stopped, and I was finally able to move on with my life.
After burying my head in the sand for many years, I knew I had to face up to my debt problems. I was ashamed of the situation I had got myself in to, and it took a lot of courage to pick up the phone and make that first call to Northern Ireland Debt Solutions.
My adviser was sympathetic to my problems and I never felt as though I was being judged. He explained all of the options which were available to me and explained how each would work in my situation. While bankruptcy is a big step, I knew it was the best thing for my circumstances. I paid off what I could afford and the rest was written off. Three years on, I am in a much better place financially and able to look forward to the future.