A 2008 gambling Commission Report showed that there are over 250,000 people with a gambling addiction in the UK. This represents approximately 0.6% of the population. Casinos and betting sites were quick to verify these numbers as correct which is probably testament to the fact that the number is really far higher. This is a multi-billion pound industry and gambling debts are growing exponentially.
Deal with the Gambling Addiction
Unless the gambling addiction itself is tackled, further gambling losses will continue to take place. Seek assistance from Gamcare or Gamblers Anonymous before using any form of debt solution to tackle gambling debts. This will gradually allow the person to ease money problems and personal debts.
Ask for a Refund of Gambling Losses
Write to the poker, sports betting or casino manager and explain that gambling losses have been accrued and these have imposed hardship on family life. Inform the manager of the gambling addiction and request permanent exclusion from the site. Politely ask for a refund of some of the gambling losses to help tackle high APR personal debts.
Write-Off gambling Debts Under the Consumer Credit Act 1974
It is believed that as many as 60% of all credit agreements signed prior to April 2007 are not legally enforceable under the Consumer Credit Act 1974. Before pursuing a debt solution, ask a legal professional to check credit agreements to see if they are voidable and gambling debts can be written-off.
Avoid Personal Bankruptcy
Whilst a debt solution is an excellent way to clear gambling debts, personal bankruptcy should normally be avoided. Since the Enterprise Act 2002, speculative activity is considered a bankruptcy offense. Gambling losses are likely to result in a Bankruptcy Restriction Order (BRO). This means that someone with gambling debts can be held financially accountable for up to and including 15 years.
Avoid Bankruptcy Restriction Orders with an Individual Voluntary Arrangement
An Individual Voluntary Arrangement is a legally binding agreement between a debtor and his creditors. Provided a minimum of 75% of creditors, in terms of value, vote in favour of the IVA, it is binding on them all. It is possible for someone to write-off up to 75% of gambling losses in just 60 months. Those choosing to opt for this debt solution will normally require a minimum of £15,000 of gambling debts.
Tackle Modest Gambling Losses with a Debt Management Plan
Whilst an Individual Voluntary Arrangement is designed for serious gambling debts of over £15,000, a debt management plan helps those with more modest gambling losses. All personal debt can be put under one roof and a single payment is made to an intermediary who disseminates this to creditors on a pro rata basis. Whilst there is no debt write-off, it is possible to freeze interest and further charges.
There is no easy answer to overcoming a gambling addiction and tackling large gambling losses. It is imperative that help is sought from Gamcare or Gamblers Anonymous to tackle the root-cause of the gambling addiction before negotiating the actual gambling debts. Check to see if credit agreements comply with the Consumer Credit Act 1974 before pursuing a debt solution.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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