Debt mythbusters

25 May 2016

People struggling with debt can be reluctant to tackle their financial problems.

They are too concerned that entering into a debt solution could have a negative impact on their home, job or credit rating – but this isn’t the case.

In fact, the biggest risk people face is not taking any action and allowing their debts to escalate. Entering into a debt solution usually reduces risk in all of the areas above.

We have listed some of the biggest debt myths below and provided the truth behind them.

The myth: Being in debt stops people from being able to rent a house.

The truth:

Poor credit history will make it difficult to rent a new house, but it’s not impossible, as only a quarter of landlords perform a credit check. If your clients live in a council or housing association property it is unlikely they will lose their home, as long as they maintain rent payments.*

The myth: Debt affects peoples’ careers*  

The truth:

Only 1% of clients we recently surveyed felt their job was at risk or that they were treated differently as a result of their debt, whilst 93% of surveyed employees said they wouldn’t treat an employee differently because of debt.*

The myth: Peoples’ homes are put at risk if they are in debt*

The truth:

Only 15% of our clients are likely to face a charge on their home if they aren’t protected by an insolvency solution.*

The myth: Being in debt will affect a person’s credit rating.

The truth:
Lenders tend to focus on recent credit history, meaning if default notices have already been issued to your clients by creditors than any negative impacts will reduce with time. Also the debt footprint disappears after six years after the last default or confirmation of entering insolvency.

Every year PayPlan helps thousands of clients deal with their unaffordable personal debts by providing a wide range of practical and long-term debt solutions.

If you think PayPlan could provide the right solution for your clients, or you would like to find out more about becoming a PayPlan partner contact our business support team on (01476) 518 178. Or for more information visit us at

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