Do Nothing
Believe it or not this is a popular choice. A common reaction to the pressure of debt is paralysis (Osterich syndrome).
Advantages
- For a short time can provide a feeling of "if I ignore it it will go away".
- Requires no effort
Disadvantages
- Debts don't go away
- Unconciously, the stress builds up leading to worry, depression or worse.
- Creditor pressure increases (phone calls, letters, harrassment)
- Legal procedings may follow, county court judgements(CCJs), attachment of earnings, charging orders (if homeowner-debt is secured to property and must be paid for when completing a remortgage or property sale)
- Debt collectors and baliffs may call
- Some creditors phone your work
- Relationships are effected
- One in three people who are being treated for stress by UK GPs attribute the debt as the root cause of the stress.
Debt Consolidation
Administration Order
Debt Management
Negotiated Settlement
Trust Deed (Scotland)
Individulal Voluntary Arrangement (IVA)
Full and Final IVA (Single Payment IVA)
Bankruptcy
