Legally binding is a term that you will frequently see throughout this website, always as a positive. However, it might not be entirely clear what we mean. In this blog, we will have a look at precisely what legally binding means, and how it can benefit you when it comes to your debt solutions.
What Is a Legally Binding Debt Solution?
In short, a legally binding solution means that any creditors involved do not have a choice as to whether or not they comply with the conditions of the agreement.
Without this legal safeguard, you are relying on ongoing creditor support. If you were to agree to provide £100 a month to your creditors, they could, at any time, demand that you pay more. Clearly, this isn’t ideal and does not grant you anywhere near the same peace of mind.
How Can a Legally Binding Benefit Me?
How a legally binding solution can benefit you, depends largely on what the solution that is legally binding provides. It is not a benefit in itself, but instead guarantees the ongoing existence of other benefits.
Here we will outline some of the advantages that debt solutions can offer, and which ones can be guaranteed by being legally bound:
End Creditor Contact: For many people, one of the biggest causes of anxiety in regards to being in debt is the constant creditor harassment. Many of our solutions will make it so that creditors are not legally allowed to contact you. This means that your creditors cannot write you any letters, cannot call you, and cannot send you any e-mails.
Instead, they will have to get in contact with us instead. Upon your annual review with your adviser, we can relay any vital information with you.
Creditors Cannot Back Out: One of the most comforting things about a legally binding agreement is that as soon as your creditors are involved, and the solution has been put in place, so long as you comply with the terms, they cannot back out.
Your creditors have no choice but to go along with it and are not allowed to attempt to get any more money from you or change the rate of payments in any way. However, on a semi-related note, if your circumstances change we can renegotiate the terms.
Safe from Court Action: One of the most intimidating things about being in debt to a private company is not being able to predict exactly what is likely to happen. There is no predetermined sequence of events that you can predict, and you can be threatened with court action at any time.
Once you have entered into a legally binding solution, however, court action is no longer an option for creditors. As long as you deliver your monthly sum, you can stop worrying about the risk of you and your family having to go through incredibly stressful legal proceedings which can potentially result in criminal charges.
Freeze Your Debt Balance: Although many people will consistently put money towards paying off their debts, it might still be the case that they are not making any progress. This is because the interest and various other fees that are applied will outweigh the money you can find to settle the debt.
However, when you enter into a legally binding solution, your creditors have no choice but to freeze all of these additions to your bill. This means that you will see real and tangible results, rather than trying to pour water out of a boat full of holes!
Do You Need Help Setting Up a Legally Binding Solution?
If you have found yourself facing significant amounts of debt and find that things aren’t getting any better, or are actively getting worse, then it is time to pursue professional help. We appreciate that opening up about debt is not easy, and it can be a hard conversation, but it is certainly no not more difficult than continuing to face debt alone.
We have a large team of friendly advisers with the knowledge and experience to provide an effective and personalised debt management plans to help you take back control from creditors. With just a little bit of information from you, our advisers will set to work working out the best way to have you back on the financial straight and narrow.
To talk to our team about starting your debt free life today, give us a call now on 0800 808 5124.
Alternatively, fill in our debt calculator, and one of our personnel will be in touch as soon as they can!