Tuesday 16th of November 2010
Despite racking up huge amounts of debt, Brits have several misconceptions about what can result from being deep in the red, it has been observed.
This has led Mike Kielty of lovemoney.com to dispel some of the common myths people believe can become a reality if they cannot pay back what they owe.
Mr Kielty stated that while many individuals feel they could be sent to prison for failing to pay off their debts, this is not the case for those who cannot afford the amounts they owe on credit cards or personal loans.
He added the only time another person is legally obligated to pay off someone else's debts is if they have borrowed money in a joint agreement, meaning relatives will not have to pay off any outstanding amounts if the person with repayments to meet dies.
Brits who are struggling to meet their financial obligations may decide to enter into an individual voluntary arrangement, which is available to people in full-time employment and consolidates outstanding amounts into one manageable monthly payment.
By Mark Waterman
