DevDosh Ltd is pleased to report on a fantastic new debt scheme that is being introduced in early 2021. The scheme is set to help everyday folk put their financial affairs in order and get back on their feet. Initial estimates forecast that the scheme, which is being introduced by the UK government will help 700,000 people get out of debt in the first year. As more and more people find out about the scheme that figure is set to rise to 1.2 million a years within a ten year time frame.
The scheme will work by creating a 60 day safe space for debtors. The debt interest, fees and any enforcement activity will halt completely for 60 days. This will give the debtors a much needed break from the pressure they feel from the debt. It is a period of time when they will not feel crushed by the weight of the debt being increased by fees and interest; or by the dreaded knock on the door from enforcement agents or harassing phone calls.
Debtors can then use this window of opportunity to seek advice from a debt advice agencies or charities. They can find out about effective strategies to get their affairs in order and get their finances straight.
The types of debt which debtors will be able to gain the temporary respite from include credit card debt, loans, rent arrears and energy bills such as gas and electric. In addition, and a great relief for anyone that has experienced the draconian council tax/magistrate court tag team of debt collection, some government debts including council tax will be available to the scheme also.
It is not only debtors that will be helped out by the new system. Creditors will also feel the benefit. Enforcement action is expensive and rarely generates satisfactory results. The new system however will create time and encouragement for debtors to manage their finances in a professional way. This will include setting up affordable payment plans that they can service consistently.
Fortunately for our investors DevDosh Ltd do not lend money to the credit profile that is able or needs to access a scheme of this nature. However, we think it’s a fantastic idea and hope it helps many, many people.