Incoming laws are set to give people with problem debts across the UK a six-week ‘breathing space’ period during which they cannot legally be pursued by their creditors.
Debtors would be encouraged to engage with relevant advisors and statutory debt repayment programmes during their periods of legal protection.
According to a recent report in the Sunday Telegraph, Prime Minister Theresa May is now poised to bring in laws that would have a huge impact on the ways in which consumers go about gaining control of and overcoming their debt problems.
Charities and campaign groups from across the country have been calling for the government to implement laws relating ‘breathing space’ schemes since plans for them they were drawn up and consulted on last year by the Treasury.
“Personal debt is growing, and we know that the guarantee of protection provided within a breathing space scheme is crucial to helping people who are overwhelmed by debt to recover control of their finances and move on with their lives,” explained Mike O’Connor from the debt help charity StepChange in a statement.
The government has said that it wants to offer more support to people who find themselves with debt problems that they cannot cope with and better protections from creditors in those situations.
“For many people in the UK problem debt seems impossible to escape. Its effects can be far-reaching, impacting all aspects of a person’s life and leaving them feeling helpless,” said economic secretary to the Treasury Stephen Barclay.
“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.”
According to the National Audit Office (NAO), there were roughly 8.3 million people across the UK who could be considered to be in problem debt as of September 2018.
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As many as one in four Scottish renters or mortgage holders are worried about whether they’ll be able to cover their housing costs over the course of this year.
Rules relating to Debt Arrangement Schemes (DAS) have been relaxed in ways that should provide extra breathing space for Scots whose finances have been adversely affected by the Covid pandemic.
Our Scottish based team can help advise you on your debt problems.