What are Bad Debts?

Bad Debts refer to those debts which cannot be collected, which is often a result of the debtor declaring bankruptcy or because the debtor simply cannot afford to pay anything off these bad debts. Bad debts mean that they can no longer be afforded by debtor, therefore the lender must declare them as a loss.

This is why those who have suffered with bad debts problems in the past will find it much harder to get accepted for credit in the future, as having bad debts will lead to a bad credit history.

Bad Debts Help

The best way to deal with bad debts is to seek professional debts management help, and the sooner you start to deal with your debt problem, the easier it should be.

There are a number of debt solutions which could help you deal with bad debt, and your debts management options could include:

Debt Management Plan: A debt management company could make your debts more affordable through a debt management plan. This will reduce your monthly creditor payments which will make your bad debts more affordable (although it will take you longer to pay off the total debt amount).

IVA: If you have bad debts over £15,000 then you may find that an IVA could be best suited to your situation. This allows a certain amount of debt write off meaning that you only pay what you can afford to over a period of 60 months. An IVA is a legally binding agreement between you and your creditors, and you must commit to making set, but affordable, monthly payments for a typical period of 60 months.

For further information about how we can help you with your bad debts, call Debts Management.co.uk on FREEPHONE 0800 0481 777 and one of our Debts Management advisors will be able to provide you further information about your available options, or fill out the Quick Enquiry form for a callback.