Brits owe £1,452bn: debt myths exposed

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Do you have to a let a bailiff in? Can you switch current accounts if you're overdrawn? We look at common misconceptions about debt.

According to figures from Credit Action, individuals within the UK owed a staggering £1,452 billion at the end of October – more than the whole country produces in a year.

If you are in debt, you could slow down your return to financial health by not understanding the truth behind these myths.

You can’t switch current account if you’re overdrawn

For most banks, people who regularly go overdrawn (but meet their interest repayments) make dream customers. Some banks charge around 20% for overdrafts while others impose a fee for every day you are overdrawn.

If you routinely go into the red, it could be especially beneficial to find a bank with a forgiving attitude to your debt. Santander’s Preferred Overdraft Rate Account offers an interest free overdraft for 12 months.

You have to let a bailiff in

In the majority of cases, you are not legally required to let a bailiff into your property. If a bailiff forces his or her way into your home, he or she is breaking the law. What’s more, there is an important distinction between a bailiff and a debt collector – the former has no legal power to seize your belongings.

Although not allowed to use force, a bailiff is allowed to enter through an open door or window so make sure these are locked. Also, note a bailiff recovering money on behalf of the taxman may be able to force their way in.

Low mortgage rates always equal the best deal

Of course, all debt isn’t bad – especially in the case of mortgages but don’t be taken in by the popular misconception that the mortgage deal with the lowest rate is automatically the cheapest. If you find a mortgage with an eye-catching rate, it’s crucial to check for hidden costs such as product fees which may be as high as £1,500.

For richer or poorer

Being married to someone does not automatically make you responsible for their debt.

A company cannot come after you if your spouse misses payments on a credit card or loan solely in their name. However, the situation changes if you sign a joint credit or have joint accounts. Once this happens, you could become jointly liable for their debts.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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