- The credit cards have stopped working, your overdraft is maxed out, applications for extended credit lines stopped being successful months ago and now even the utility bills are falling behind.
- Sound familiar? Well increasing numbers of Brits are now looking to turn their back on debts in the UK in favour of moving abroad and starting a new life.
Particularly prominent amongst divorcees, with the collapse of a marriage, it can seem like the fastest, cleanest and cheapest way out of the hole. But longer term is it really the best option?
Sure, the thought of escaping the incessant telephone calls, letters and emails from credit card companies can seem like a good idea at first. And certainly avoiding paying interest on mounting debts can seem like a preferable solution, but what are the implications of ‘jumping ship’ and moving abroad in this situation?
Firstly, there is the fact that your creditors back in the UK are not going to suddenly forget that you exist. Financial services companies in the UK have invested great sums in recent years to improve their collections and recoveries strategy and an instant write-off for your debt is unlikely. Much more probable, is they will look to trace you to hold you to the debt, will employ collections agencies and may even seek legal intervention for any assets that you do leave in the UK.
To those in the deepest debt holes, you may say ‘so what? I don’t have anything to lose!’ but it is not just what you own now that may be at stake. Some financial service companies keep on file their list of bad debtors, even though these debts have been written off in their company accounts. Proceedings are then put in place to reclaim funds should any given person re-enter the country.
Monitoring of the electoral role, future credit or bank account applications (and even social networking sites) are all conducted on a periodic basis.
Whilst you may have every intention of leaving the UK for good, it is worth noting that in 2008, the Institute for Public Policy Research reported that 85,000 British Citizens returned to the UK from living abroad, and with only 172,000 leaving the UK in that year, this represents a net return of almost 50% for that calendar year. Which if you happen to be in this 50% that do return, there may be some nasty surprises that await you on your return!
- So, what other options might you have to escape the mountain of debt?
A good place to start is sitting down to calculate exactly what debts you do have, who you owe money to and the rate of interest that you are currently paying.
Then, one call to a debt management specialists at Lewis Alexander can make a huge difference. Our lines are open 24 hours a day on 0800 018 6868.
At Lewis Alexander we make it our priority to help you through what can be a very stressful time. No-one intends to get into huge amounts of debt and all we ask is that you have a regular source of income and a genuine intention to improve your personal situation.
We start by understanding all of your current outstanding debt commitments and can work with your creditors to reduce your monthly repayments and can sometimes reduce the overall amount of interest repaid. We also work with you to find the debt solution that is most appropriate to your personal circumstance.
Some of our clients have equity available to release from their home that can be used to settle debts. Others might find that entering into an IVA is best for their situation and many of our clients find that simply using our debt management service helps them get control of their finances again.
- Whatever the best financial debt solution is, we will work with you to find your best personal debt plan.
Call Lewis Alexander today, free and in confidence on 0800 018 6868. We are waiting for your call and our debt management specialists are ready to help you try and start to change your financial life for the better!
