UK PERSONAL DEBT FAQ

What is personal debt?

Debt is something you owe to another person. In financial terms, debt is when you owe money to a creditor or lender, in return for finance you have obtained from them. Debt isn't a problem if you can repay it but once in debt, many people experience financial problems or personal circumstances that cause them to fall deeper into debt.

What areas of debt should I know about?

To understand and control personal debt, you should be aware of many areas of debt including debt management, debt consolidation, debt counselling, bankruptcy and credit repair.

What is debt management?

Debt management is a popular solution to bad debt problems. Debt management is the process by which you recruit the services of a debt management company who evaluate your personal finances and debts and develop a plan which not only repays your debts but allows you to live above the breadline.

Successful debt management can help get your finances on track and stave off the threat of bankruptcy.

Find out more about Debt Management

Or visit the Debt Management FAQ

What is Debt Consolidation?

Debt consolidation is the process where you consolidate your existing debts into one manageable monthly repayment.

With debt consolidation, you restructure your current debt problems into one monthly repayment (generally at a reduced rate of interest and spread over a longer period of time). The alternative to debt consolidation is to continue struggling to meet the monthly repayments of multiple debts, constantly creating a bigger problem.

Find out more about Debt Consolidation

Or visit the Debt Consolidation FAQ

What is Debt Counselling?

Debt counselling is a means of gaining a fresh, expert perspective on your debt problems and receiving invaluable feedback on how best to address your dire financial situation.

Debt counselling involves an objective, knowledgeable and helpful individual - experienced in debt and finance matters - appraising your financial situation and offering feedback on where you stand with regards to cash flow, debt and overall finance.

Find out more about Debt Counselling

Or visit the Debt Counselling FAQ

What is Bankruptcy?

Bankruptcy is brought about when an individual is unable to manage their debt. For a debtor or creditor to apply for a bankruptcy order, the debt must be at least £750 and not be disputed by either party.

The most common way to bring on bankruptcy is to ignore your debt problems. Instead of dealing with debts and creditors, doing nothing to arrest your debt problems will almost inevitably lead to personal bankruptcy.

Find out more about Bankruptcy

Or visit the Bankruptcy FAQ

What is Credit Repair?

Credit repair is the process of rectifying inaccuracies contained within your credit file, thus improving your credit rating and allowing you access to the levels of credit you deserve.

Find out more about Credit Repair

Or visit the Credit Repair FAQ

UK Debt Advisor, sponsored by UKDebt24

This guide to UK Credit Repair is sponsored by UKDebt24.

UKDebt24 are one of the UK's leading personal debt management solution providers.

UKDebt24 offers a debt management scheme that could see all your debt being dealt with through one affordable monthly payment.

In just 24 hours, UKDebt24 could be dealing with all your debt problems, offering you short-term debt solution and long term financial stability.