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In UK people are getting into debts every now and then. It can be due to extravagant spending spree or might be letting loose the financial reigns. The only way out of debts is to write them of with the right solution. There are many laws that have developed around debts in UK. But at the same time there are some myths as well that have built up with time. Here are 7 myths that guide the general conscience of the debtors in UK.

1. Debt is a problem and when someone gets into this trap the only way out is to make payments. In this case, the creditors possess the right to recover their money that you owe them. However many debtors think that if they are over burdened with debts, then they stand a right to be discharged. But it must be understood that even in case of debts, there can be legal proceedings if you delay in your payments. So it is better for you to pay off your debts. You can choose any informal solution like a debt consolidation method or a debt management plan as well as formal debt solutions like IVA, Administration Orders and Trust Deeds. Find out more on insolvency from The Insolvency Services website.  
2. Another myth is that debtors think they can refuse any legal obligation. It can be like not answering phone calls or relying to letters. Here they go wrong. The more you run away and neglect your situation, the more payments keep piling on you. For instance if in court it is proved that you did not respond to the creditor’s call, it will go against your favour. Many people feel that they will be getting a lenient treatment on sympathetic grounds like having a family or being sick. This is not the truth. Creditors will chase you irrespective of your situation. Though creditors cannot harass you legally. But it must be kept in mind that the law only prevents physical harassment and not letters or phone calls for threatening legal proceedings.
3. Did you know that the debt laws in UK operate under a Statute of Limitations?  Creditors get a time period to pursue their money and this is defined under the Limitations Act 1980. This makes people think that if they ignore their debts for a period of time, their debts become invalid. However, if there is a CCJ against you or you have made any kinds of payments to your accounts or there has been any communication with your creditors, then this limitation does not apply.
4. Many people are guided by the myth that if their debt amount is small, they would not be pursued by their creditors. This is true in case of bankruptcy. A creditor can sue for a bankruptcy only when the debt amount is £750 or more. It is also is believed that government bodies as well as local authorities will never pursue you or remove you from your house. In fact local authorities or tax office are regulated under statutory obligation to recover debts as much as possible. So they can force you out of your house or seize you assets in case you fail to make payments.
5. Another most common debt myth focuses on “bad credit ratings are for life”. People fell upset about their bad credit ratings and feel they will have to bear this bad mark throughout. It is not so. Your credit records stay on your file for 6 years and you can always improve your credit score.
6. A bad credit never means that you cannot borrow anymore. This myth is a common one. Usually with a bad credit score, you might not get the low interest rates unlike with a good credit file. However, this will never come in your way of getting a mortgage.
7. Many debtors feel that debt advice is costly. But you can get some very well known debt advice agencies that will help you out without charging any fees. For free debt advice you can get in touch the local Citizens Advice offices or seek help from National Debtline.