Take the first steps in becoming debt free today, get in touch with Collins Morgan.
debt help from Collins Morgan
At Collins Morgan we offer a variety of solutions to a wide range of debt problems. An important fact to keep in mind is that in the modern world everyone has debt. There’s no avoiding it and some of us just need a little help from time to time.
There are many different types of debt and several methods and processes through which we can help people settle their debts amicably and without further stress.
You’ll find information on our site explaining tools to help exit debt such as Trust Deeds, Individual Voluntary Arrangements, Secured Loans, Sequestration, Debt Relief Orders & Debt Arrangements if you’d like to read more before you contact us.
Types of Unsecured Debt
It has been quite rightly pointed out by Martin Lewis that credit cards are better described as ‘debt cards’. When you use one, a credit card provider will lend you the money for free provided that you pay it back at a later date. If you don’t, you will be hit with hefty interest rates and accompanying fees.
An increasing number of British families are relying on credit cards to see them through from month to month. For example, in January of 2018, credit card debt rose by an incredible 10%. This is not sustainable but Thrive can help you tackle credit card debt once and for all.
These lethal cards function in a similar way to credit cards but for one store or company. They allow you to shop on credit to pay back at a later date but carry interest rates significantly higher than even credit cards.
What makes store cards even more unfair is that they lure you in with promises of bonuses and instant discounts. The best method of avoiding trouble is to avoid these cards altogether. However, if you have built up a store card balance which you cannot pay off give us a call immediately.
Payday lending has become an increasing target for the government in recent years. Recent legislation has limited how much these lenders can make, yet since the companies still exist, we are evidently not out of the woods yet.
These loans take advantage of people in desperate situations, providing massively expensive loans to people who have a good chance of never paying them back. There is a way out, however, and it all starts with a phone call.
Overdrafts are a particularly easy debt to fall into as in many ways it feels like ‘free’ money. However, this is far from the case. It is a very expensive method of borrowing with ridiculous interest rates and crippling charges.
While the FCA is taking steps to regulate overdraft borrowing, it has done nothing thus far to change the fact that an increasing number of British families are relying on bank overdrafts to make it from month to month. This is an unsecured debt, and there are solutions.
Owing money to the government is much more serious than owing money to a private company. This is because they have many more powers at their disposal in regards to getting their money back. Since local councils are government bodies, these are absolutely a priority debt.
If you miss a council tax payment, you will receive a let of warning. If you do not pay after the given time, you will be asked to pay the total you owe for the year, losing your ability to pay in instalments. If you take this even further, the government may take money directly from your bank account, which can make it increasingly more difficult to manage your finances. When you owe money to the government, make sure to contact us immediately.
Again, owing money to the tax man can have serious repercussions. While most people have their tax dealt with automatically by your employer, for self-employed workers becoming indebted to HMRC is an incredibly serious issue.
Whether your debt to the HMRC has come around due to an unexpected change in profits, a mistake in your tax form, or any other reason, it is essential you deal with it sooner rather than later as extended cases can result in a criminal sentence and even jail time.
Similar to owing money to the government, owing money in regards to property can have much more severe and immediate repercussions than owing money to a regular private company. This is because if you can’t pay up, you may be forced to leave your property. Because of this, this type of debt should be paid as a priority.
Last on this list is yet another priority debt. Again, this is because energy/water providers have yet another tool in their disposal not available to other companies. If you cannot pay your energy bills, then the lights will go off. Make sure your energy bills are paid before non-priority debts.
If debt is starting to get on top of you, it is time to seek out professional help. We understand that it is not easy to open up about financial trouble, but we cannot stress enough how friendly and understanding our team is. We are not here to judge; we are only here to listen and advise. Whatever we recommend is free of charge, zero-obligation, and the final decision is always in your hands.
To speak to one of our team immediately, give us a call now on 0141 218 4450.
Alternatively, fill in our debt calculator, and one of our personnel will be in contact at a time which suits you!
What is Unsecured Debt?
Debt comes in many forms but they can all be categorised into one of two groups; secured and unsecured.
Secured debt is a loan taken out against something such as mortgage which has the property as collateral.
Unsecured debts are loans which do not have collateral such as your home and, as such, lenders are forced to greater and more unpredictable lengths to reclaim their money.
At Collins Morgan we deal with unsecured debt as it is difficult for secured debts to get too out of hand as the lender has a pre-agreed route to reclaiming their money if the terms of the original agreement are not met. Unsecured debts however can spiral out on control and can lead to unpleasant repercussions.
Lenders of unsecured debt can keep increasing the amount you owe as well as adding additional charges. This process can end in court and criminal charges.
Here though, we thought we’d provide a brief explanation of unsecured debt and a rundown of the most common types of debt that people encounter.
We pride ourselves on our approachability and helpfulness so feel free to call us on INSERT NUMBER and one of our experienced advisers will walk you through the whole process, find out a little about your situation and advise how best we can help you to tackle your debt and get you back to a normal life without the worry and pressure debt issues can bring.