Unsecured Debt

So, you’re in debt and not quite sure where to start?

Debt really isn’t something that should keep you up at night, especially debts that fall under the Consumer Credit Act 1974.

You might think it’s easy for us to say - but once you understand the subject of debt you will feel empowered to tackle your situation head on, without fear. This is where we at The Real Debt Guy come in. We’re here to provide you tools to understand your situation and fight your battle. Starting with Unsecured Debts.

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Stressed and need a solution?

If you’re stressed, have a good understanding of Unsecured Debt and just want to get to solutions, lets cut to the chase:

  • This is the starting point for any Unsecured Debt situation - read this article first.
  • A method for managing your Unsecured Debt is here.
  • For those of you whose debt is with a Debt Collector you need this one.

Make sure you come back to read the rest of this page afterwards.

Now, back to where we were ...

Which debts does this section cover?

This section applies to all Unsecured Debt. That means Credit Cards, Store Cards, Overdrafts, Personal Loans, Payday Loans and other debts that fall under the Consumer Credit Act 1974.

First things first. Know if your debt is Statute Barred or not.

Your first question should always be "is my debt over 6 years old?"...

The Real Debt Guy

Your first question should always be "is my debt over 6 years old?". Why is this an important question? Well, if your debt is over 6 years old and you haven’t communicated about, paid towards or it hasn’t gone to court. Your debt may be Statute Barred and can be handled with just one simple letter.

As we mentioned before, this article should always be your starting point. We explain what Statute Barred debt means and how you will know if your debt is Statute Barred. If after reading you are sure your debt is statute barred, download this letter.

Don’t worry if your debt doesn’t fall under the Statute Barred category; the next thing to do is understand your debt better.

Understand your type of debt and possible solutions

If you are struggling with your Unsecured Debt don’t stress at all, we got you covered. You are protected by section 7.3 of the Financial Conduct Authority Handbook. Cutting to the chase, that means you can make token payments towards your debts for as long as you are struggling. We got you covered in this article that covers whether token payments could be the answer you're looking for.

Ah, but what if your debt is with a Debt Collector already? You can relax, all of the above still applies with a slight alteration, because Debt Collectors are regulated by the Financial Conduct Authority as well. That means they also have to follow section 7.3 of the Financial Conduct Authority Handbook.

There’s no point in us jabbering on here, we have that covered too. If your debt is with a Debt Collector and you want to understand how to make affordable token payments, head on over to this article.

Is this my only option?

Definitely not. There are other options for you to consider. We have collated a few to help you to understand before you tackle your debt. Let’s be straight, this does not mean that we recommend them, we just think it’s important for you to make the best decision for yourself. You can’t do that without knowing all of the options out there.

Always read The Real Debt Guy’s final thoughts and the end of our articles to see our true opinion. We are here to support you, not Creditors and Debt Collectors.

How does my debt impact my Credit Rating?

You might be worried about your Credit Rating, but should that be your main concern when you are struggling financially? That’s the question you should ask yourself. We have discussed this question in one of our many articles in the block below.

Do I have to fill in an income and expenditure form?

You might assume that you must, but it’s not as straight forward as that. You can find out when and why you may choose to or choose not to complete one.

The bottom line

Unsecured consumer debts all fall under the Financial Conduct Authority. As we said at the start of this page, it’s not something that should stress you or keep you up at night. Just understand that there are solutions. Be realistic In that you may lose your credit facility and see a reduction in your credit rating for a period of up to six years. This is a small price to pay so that you don't spend each day worrying and stressing.

Check out our recommended reads below to find answers to most of the questions the members of our community ask us!

The information we provide is simplified for anyone to understand and is based on information provided by the Financial Conduct Authority and the United Kingdom Government.

Solving your issue is just the beginning, explore our our mindset, guides and articles to help gain a new point of view and avoid debt issues in the future and grow from this.

Related articles.

Budget planner.

Do you know how much you have left at the end of each month? Do you need to send an income and expenditure to a creditor? We've got you covered. Our budget planner provides you with a simple and free way to view and track your spending.

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