People often feel awkward or embarrassed while talking about debt, and it leaves them worrying in silence about their debts or family members’ finances; it is normal to feel uneasy about speaking to other people about your finances. But you need not worry in silence. There are many Free DMP Providers in London who can help you out with your debt issues. In this blog post, we have answered some questions that you might be afraid to ask; these are: Best IVA Debt Advice in London
Did I don’t need to pay the debt if it gets old?
Not really. Many debts might worry you, like medical bills or credit card balances, which have a limitation. These debts vary according to state, but generally, they have three to six years of tenure from the most recent or the first missed payment. But you will still owe the debt, and your lenders will seek compensation, even if they can’t sue you.
Would I get stuck with my family members’ debt after their death- or vice versa?
It depends on the debt and how the family members’ finances are connected. There are some cases in which a family member has to pay, like on joint credit cards, mortgages, or other loans. And in a community property state, the surviving husband or wife is responsible for the marital debts. Get the Best IVA Debt Advice in London and pay your debts efficiently.
Can I Get Arrested for a Debt?
Well, technically, no. The debt collectors can sue you for the payment, and almost 90% of people who are sued don’t appear in front of a court, leading the court to make a default judgment that orders repayment—other collectors issue arrest warrants to get the consumers to obey this order.
Will bankruptcy erase all my debt?
Your bankruptcy cannot erase the child support and alimony debts. Tax debt, student loans, and judgments will also be challenging to eliminate. You can learn about London’s Best Debt Management Plan to manage your debts.
Is there any maximum amount of debt I can owe?
No, there is no maximum amount. The lenders can lend you more amount of credit than your ability to repay. It is advised that you should be realistic about what you can repay and take the amount of the loan based on that.
How can I Improve My Credit Score?
Five factors generally get your credit score down:
- The amount of debt you owe
- Your payment history
- Your credit history
- Credit diversity
- Number of inquiries
A person’s payment history is considered the essential factor in her credit score.
Always pay the EMIs on time. Pay the minimum amount you owe if you still need to get the required amount. You should talk to your creditor if you need to make a minimum amount. Your creditor can offer you a partial or deferred payment.
You can also improve your credit score by:
- By utilizing the credit under 25% and not using your available credit.
- Limiting the number of applications as every credit check can affect your credit score.