In times of illness and redundancy, borrowers can find themselves struggling to keep up loan and mortgage repayments through no fault of their own - but new government proposals to support struggling borrowers have gained the full support of Debt Free Direct.
The independent advisory company for people with debt problems has welcomed the debt relief plans, announced yesterday by the Department of Constitutional Affairs (DCA) and constitutional affairs minister David Lammy.
According to Debt Free Direct, around 1.5 million people who have fallen into debt as a result of illness, and about 1.3 million people struggling with repayments after losing their job stand to benefit from the measures.
These include the introduction of an Enforcement Restriction Order to provide temporary relief from enforced debt collection in extreme circumstances, and reforms to county court administration orders, including the introduction of a £15,000 debt ceiling.
"Illness and redundancy are two key reasons why people get into debt," said Andrew Redmond, Debt Free Direct's chief executive.
"Although it may be the last thing on your mind, if something unexpected forces you into financial difficulties, it is important that you do not ignore the problem, but seek professional advice from people who can best advise you on how to handle your financial worries."Click here to find out more about loans.
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