a lot of ways to get their debt problems solved. For their problems,
governments also introduce a lot of programs and plans for benefits of the
public. Some people act wisely and get benefits whereas some of the debtors
don’t even recognize what is their problem and in the end they suffer a lot.
Debtors take loans and keep on adding the payments each month till the amount
gets bigger and then it becomes difficult to pay. When you take a debt or any
type of loan, make sure you are able to repay it afterwards. If you think that
the repayment is not possible in future then don’t take it and try other means
like your friends or family members. Debt
relief order is also a financial tool for the debtors who earn their living
from hand to mouth and they are not able to repay their loans.
often take loans for necessary reasons like if any medical emergency hits the
family, you have to bear the expense at any cost and there is no other option
than taking loans. Certain times in life of a common man, he is forced to take
loan and then he takes it. Basically the idea of debt relief order is to facilitate the poor people or middle class
people to help in repayment of their loans. They usually have low debts and
small income which is hardly enough for their monthly expenses. So it is a plan
used for debtors who really deserve financial help.
Debt relief order makes it easier and simple for the
debtor to earn his living. He doesn’t have to pay any payment till one year.
The length of a debt order is one year and for that year, your creditors cannot
ask you for their payment and they also cannot take any legal action against
you. People with debts less than fifteen thousand and their disposable income
less than fifty qualify for a debt relief plan. There are more limitations like
your valuable assets must not exceed three hundred in amount and you shouldn’t
own a car or a home.
If you used
a debt relief order in previous six
years, you don’t qualify for another one. After time period of six years, you
can get this order again but not before that. This is also an alternative to
the bankruptcy because people turn towards bankruptcy because of their debt
issues. They want to remove their debts and for that option, they declare
themselves bankrupt. Whereas the relief order is better and it makes you enable
to start a new financial beginning. It doesn’t harm you in terms of your
reputation and it also helps you increase your credit score. Your credit
history will also become better. Whereas in case of bankruptcy, your history is
totally damaged and you can face financial hurdles in future as well.
is well known debt consolidation advisors all over the United Kingdom. He
provides useful advice through his article on Debt Relief Order and Debt
Consolidation Loans. For more details visit: