New Plans Could See Problem Debt Sufferers Given “Breathing Space” from Creditors
October 25, 2017
The UK government has announced that it is aiming to help people struggling with problem debts by effectively giving them a six-week grace during which they would be protected from their creditors.
Hopes are that a period of “breathing space” and a relief from creditor pressure will give people with mounting debts a chance to get the advice they need to tackle their issues properly and turnaround their situations.
Precisely how the government’s proposed “grace period” would work in practice is yet to be decided but a process of gathering the views of relevant parties across the country has now been initiated.
Charities and debt advice organisations, as well as money lenders and creditors, are all expected to provide their feedback on all the most relevant issues over the course of the next 12 weeks before any legislative action is taken.
The starting point for that process though is that the government wants to find a way to ensure that people with problem debts are given a chance to address their issues with the help of a six-week period during which they are freed of extra interest demands and enforcement actions.
The idea is that a grace period would improve the chances that someone with problem debt might seek third-party assistance and set up a repayment plan that puts them on a path towards becoming debt free.
Statements issued by the government describe debt advice as being a “key” part of the process that helps people go from being overwhelmed by debt to being solvent and in proper control of their finances.
“For many people in the UK problem debt seems impossible to escape,” said Stephen Barclay, economic secretary to the Treasury.
“Its effects can be far-reaching, impacting all aspects of a person’s life and leaving them feeling helpless.
“That is why we are working to give people who are overwhelmed by debt more time to seek advice, find a workable solution, and help get their lives back on track.”
If you live anywhere in Scotland and you are in need of debt advice then Scotland Debt Solutions can provide all the support you need. Contact us directly to arrange a free and confidential consultation.