What Are My Options If I Cannot Afford to Repay Gambling Debts?

What Are My Options If I Cannot Afford to Repay Gambling Debts?

The answer to this question, is almost in another question due to the fact you need to know the source of your gambling debts; who do you owe?

If you owe money on credit cards, loans, overdrafts and standard debt accounts, you have options.

If money is owed due to a gambling issue and it is owed to an individual, you still have options, but the individual may not be bound, or wish to adhere to those options.

Let’s look more at this.

Gambling as Entertainment or Gambling as an Addiction

It would seem that everywhere you go, the High Streets, the main streets, online, mobile applications, etc, there are betting/gaming shops.

Then look around at the Bingo Parlours, the Social Clubs and pubs offering Bingo as a source of entertainment.

And don’t forget, cash is usually the prize when you play.

There are ads on TV, which of course have the disclaimer, “when the fun stops, stop”.

And lest we forget the Lottery, which is a form of gambling.

Gambling is a billion pound industry, last year over £14 billion was spent on gambling!

That’s a lot of pulls on a fruit machine.

Of course not all this money is “dirty” by gambling.

The gambling sector gives £296 million to good causes, the National Lottery gives £1.5 billion to charities and good causes, and gambling here in the UK employs almost 108,000 people.

So what do we wager on, anything, and I mean anything, from sports to the weather, to if Aliens will land on Earth.

Go on, place a bet on the Aliens.

Where Does Money to Gamble Come From?

The funds to gamble come in various ways, but a large portion can be the use of credit. Cash and one’s wages are a strong source, but once that pool dries up, a gambler will move onto credit cards, overdrafts, and loans.

In looking at gambling as entertainment and an addiction, we need to look at why gambling can become an addiction, and there are many reasons why, a person’s personality, and also a concept called intermittent reinforcement.

This form of reinforcement is the strongest of the reinforcers, in part due to the fact you never know when you will receive the prize or reinforcement; which in gambling is a win.

Since you never know when you may win, you continue to play waiting and hoping for that reinforcement/win. Then when you get it, the win, intermittently, it only makes you want to play/gamble more.

As to where the money comes from for gamblers to gamble, it can be in two forms:

* Wages/earnings

* Credit

If a gambler uses their wages to gamble and lose, either they stop at a certain point, when they have lost what they feel they can afford to lose, or they continue until the money is gone. And that is where many gambling addicts wind up, losing all their wages.

Then to continue gambling, or to make ends met and pay bills until they get paid again, they may rely on credit. Credit cards, loans, overdrafts, even borrows from friends and family.

If the spiral of gambling and debt continues, one can find themselves with thousands and thousands of pounds of debt, that they may not be able to repay.

Applying for more credit/credit cards, in the hopes of a big win, only keeps the debt growing, until one day, there is no more access to credit.

Options With Gambling Debts

The options a person who is insolvent and has gambling debts, are the same to someone whose debts are not related to gambling, with a few minor exceptions.

The one exception is bankruptcy. You can include gambling debts in a bankruptcy or DRO/Debt Relief Order, however, you will in all probability receive a BRO/Bankruptcy Restriction Order, which keeps you under the restrictions of bankruptcy longer than 12 months.

This means you cannot access credit again until the BRO is lifted or over.

This does not mean that you cannot place the accounts in a debt management plan for a period of time, prior to then going bankrupt, or possibly in an IVA/Individual Voluntary Arrangement; however an IVA may be tricky depending on how new the accounts/debts are.

In addition, if you were to go bankrupt, it is always best if you have sought out help with the gambling, such as attending Gamblers Anonymous.

These options are considering you owe money on credit cards, loans, overdrafts, and other debts to a lending institution, not to an individual.

If you owe money to an individual from gambling, depending on the nature of the loan, if it is a formal loan documented with an agreement, or informal, the individual may not wish to work with you through a debt management plan, or accept any notices of bankruptcy.

So there are options with gambling debts, but you need to deal with the main issue first, and that is what brought about the debt.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.