Financial Difficulties
When credit is readily available, people with a modest to low income may be able to obtain credit and then when they can't afford the payments, they take on more debt to repay the previous debt. This is called a debt trap that will eventually lead to insolvency / bankruptcy.
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Bankrupcy in the UK continues to rise, where the average debt per household is £63k, including mortgages, at the end of 2021. This debt creates large financial risks for households as they still need to repay that debt, even if they lose a job or encounter a health emergency, among other unforeseen events.
Bankruptcy is serious and should not be taken lightly as you will lose your home and all other assets. You will no longer have control over your finances and your financial situation is made public, which can be traumatic.
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It will be years before you are discharged from insolvency but even then the Department of Trade and Industry keep a note for up to 15 years which will prevent you from accessing credit for years to follow.
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The only way to avoid this is to pay off your debt and drastically reduce your monthly outgoings. If you have equity in your property, freeing this as quickly as possible could help to pay off as much of your debt as possible.
Quickstep can help you with this as we have cash investors who have cash to complete a quick deal to enable you to free the necessary funds. We also have other options if you have little to no equity in your property.