people who are suffering bcos of huge debts and dont have any resources to solve the debts what do they do?

Question

People who aer suffering bcos of financial crisis what sort of measures can they take to prevent themselves in legal consequences and the harrassments from the people whom they owe money

Answer 1

Contact the Citizens Advice Beareau who will be able to give you stepp by step guidance on how to make the move towards sorting out your problems.

As a simple measure, you could just contact all of your creditors and tell them that you are having financial problems and negotiate smaller repayment amounts.

Never ignore them though - you will end up bankrupt and at worse, imprisoned.

Answer 2

It depends on what kind of debt. If you have credit card debt you can always call your CC companies and see if they are willing to lower your monthly payment. Chances are if you have ever been late, they have raised your original interest rate. Yes, they can do this! It might even be as high as 30%. It is hard to notice unless you pay real close attention to your credit card statements. Try to get that lowered as well. Remember, they would rather make it more affordable for you to pay your bill then not pay at all.

If you have vehicle debt, there is not much you can do about that. But whatever you do, don't ignore your debtors. Call them and explain your situation before things get worse. Especially if you have any medical bills. They are usually very flexible.

Worst case scenario, file bankruptcy. This is horrible for your credit and unfair to your debtors, but it is intended for those that have got themselves in unresolvable situations.

Good luck. I hope things get better for you.

Answer 3

Three Suggestions 1) Consolidate your debts 2) File bankruptcy (bankruptcy is not advised for all cases) 3) Contact a credit counselor:


Ways to Consolidate Debt

Consolidating debt is an ideal way to reduce your amount and tenure of debt. You make a single payment to one lender on a certain date and this will help you clear off the debts faster. But the fact remains that debt .....

http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html


How to Avoid Bankruptcy Explained

With the rising consumerism, aggressive advertising campaigns and increasing incomes, people are living well beyond their means. As a result, they are burdened with heavy debts. If they are unable to repay the dues, they have to file bankruptcy. Bankruptcy is the last resort when you are reeling under financial problems....

http://www.debt-explained.com/category/How-to-Avoid-Bankruptcy-Explained.html

Credit Counseling Programs

When you are stuck in debt, consider all the available options. You will need to work closely with experts who will provide right guidance to clear off your debts. Credit counseling agency is one such set of experts, equipped to fight debt. These agencies ....

http://www.complete-debt-info.com/category/Credit-Counseling-Programs.html

Answer 4

Try contacting a non for profit credit counseling agency. It is a free service which consolidates debt, works with your creditors to lower your month payments and interest rates, and actually does not harm, and may improve your credit rating over the long haul.

There are numerous agencies you can research on the internet, but I used this agency, and I was able to not only take hold of my finances, but I was able to improve my credit to obtain a mortage 5 years after enrolling.

Good Luck!

Answer 5

Unless one can get all the debtors to the table under an agency such as Consolidated Consumer Credit, the only other way out would be to file for "bankruptcy".

Answer 6

Perhaps they should have thought of the consequences of spending money they didn't have and knew full well that they'd never have before they borrowed it. As regards the alleged suffering, where are all the items they bought with somebody elses' cash?

Answer 7

File for bankrupcy if it's that bad... then reflect on how they got into such a state in the first place. It's not enough to solve the immediate problem if recurrance is likely.

Answer 8

Bankruptcy is an easy get out and more and more people are entering into this without care!
Another way out is insolvency.
A growing way out these days is Individual Voluntary Arrangements.
Read a great short(ish) article at http://uk.biz.yahoo.com/23082006/389/bust-solve-debt-crisis.html that explains it all for you.

Answer 9

You need to face up to it - running away never helps. The CAB will give you unbiased advice - it may be an idea for you to file for bankruptcy, depending on how bad the situation is.

Answer 10

that seems to be most of the country
if not the world
including me
i have a feeling the goverment may have to do something soon
after all they managed to get the banks to reduce
the fees they charge for over due letters,
failing this the uk economy will grind to a halt,