Latimer Hinks

Latimer Hinks, the Darlington law firm, is warning individuals and business owners across the region that they must face up to their debts – however big or small – to prevent them spiralling out of control.

The advice from Latimer Hinks partner, Mark Gardner, follows a recent report stating that more than five million people have missed a monthly credit card payment within the last six months as finances are stretched to the limit.

Mark, who specialises in debt and insolvency issues, said: “Evidence worryingly suggests that more and more people are falling behind with their debt repayments. After an unusually prolonged period of economic growth, a lot of people are choosing to ignore the growing number of news reports highlighting that the good times are over. Too many people are burying their heads in the sand with the hope that problems will disappear. This is not going to happen and sadly there is no magic solution. People really need to face up to their debts before it becomes too late.”

Failing to tackle debt head on – be it business or personal debt - can lead to serious consequences. Arrears on any loan secured against property may result in action to repossess your home; indeed, the Finacial Services Authority has reported that home repossessions have risen by 40% since last year.

Mark is urging people who find themselves in this position to seek help now. He said “I have seen instances where embarrassment or simply fear of admitting the truth has driven people to contemplate suicide as the only way out. Even in the worst case scenario, the objective has got to be continued survival – not suicide. There is advice available but people need to take it now and not leave it until an escalation in the problems means that desperation sets in.

“A specialist in insolvency, be it a solicitor or accountant, will be able to help guide you through the options and an initial consultation should always be free of charge. They may be able to help you negotiate arrangements with your creditors to pay off the debts over a period of time or offer practical advice on how to liquidate assets to improve cash flow.”

Facing up to problems is always difficult and for some people, it can be an incredibly painful experience. For this reason, impartial advice can prove to be invaluable when businesses and individuals face the bleakest of circumstances.

Mark added: “When you have invested so much time and energy into establishing a business, it can be devastating when it is threatened by mounting debt.  Some people struggle to see a way through the mess while others try to shut it out completely and pretend that it isn’t happening. In these circumstances, you need to gather yourself together and seek advice that will help shape a long-term strategy and not a short-term quick fix. Help is available but people need to open their eyes to the problems around them and get advice before it reaches the point of no return.”