If you are in financial difficulty and considering bankruptcy, then it is important to understand the consequences of this. It could affect your ability to get a mortgage in the future, as well as other loans.
A mortgage is the only way most people can buy a house. It can be cheaper each month than paying rent and although there will be other expenses such as maintaining the property and insurance, it can still work out as a very good long term place to put money. Many people like to have money tied up in a property so that they can have something to leave behind when they die. However, not everyone is able to get a mortgage.
If you have a bad credit record then it is either impossible to find a mortgage or you have to get one which has an unfavourable interest rate because you are more of a risk. It is therefore worth avoiding financial problems as much as you can. Obviously, this is not always possible, but making sensible decision when you need financial help can make a big difference.
You need to be able to show that you are capable of paying back the money that you owe. Sadly, with bankruptcy, this is not the case, because although your assets are sold to pay back as much as possible, there may just not be enough to cover your debt. There is the option of an IVA, which could help you.
An IVA is an arrangement where you will have all your debts consolidated and then be able to pay it back in manageable amounts. It will take time to clear the debts and in the early stages you may find that you cannot get other loans. However, once you have started to show that you can be relied upon to make repayments, then this could really help you. It can therefore be worth taking some IVA Advice to find out what it would mean for you and how it would help you in the future.
It can be so easy to just think of what will be best for you financially at the moment, but it is very important to thing in the long term as well. Considering the future consequences of your actions could have a huge influence on your future, with regards to many things. We know that money cannot buy us happiness, but having a more financially secure future can help to keep stress levels lower and this will certainly help on the happiness front.