Scary Debt Myths Debunked

tile letters that spell out the word myths

Debt can feel frightening, especially when you’re not sure what’s fact and what’s fiction. Over the years, lots of scary myths have popped up, and believing them can stop people from getting the help they really need.

Let’s bust some of the most common (and spookiest!) debt myths.

Myth 1: “Bailiffs can turn up and take everything you own”

The truth: Bailiffs (also called enforcement agents) have strict rules about what they can and can’t take. They cannot just show up unannounced and clear out your home. Here’s what you need to know:

They usually need to give notice before visiting.
They cannot take essential items like your clothes, fridge, cooker or work tools.
In most cases, they’ll try to agree on a repayment plan with you first.

So while the thought of bailiffs might sound scary, the reality is a lot less dramatic.

Read our full guide on bailiffs here.

Myth 2: “Debt ruins your credit score forever”

The truth: Debt does not destroy your credit score for life. Missed payments or entering a debt solution can affect your credit file, but this isn’t permanent.

Negative marks usually stay on your report for 6 years.
During that time, you can still work on building good habits like paying bills on time.
After 6 years, those marks drop off, and you can rebuild.

Your financial future isn’t haunted forever just because you’ve struggled with debt.

For more information on your credit report, read our guide here.

Myth 3: “You’ll go to prison if you can’t pay your debts”

The truth: In the UK, unpaid debts do not lead to prison. Debt is a civil matter, not a criminal one.

There are very few rare exceptions, like not paying court fines, council tax or child maintenance, but even then prison is the absolute last resort.

For most debts like credit cards, loans or overdrafts, your creditor can ask the court to take action if you don’t pay. This will start with a County Court Judgment (CCJ). If the debt still goes unpaid, the court could allow further action such as:

Taking money directly from your wages (an attachment of earnings)
Securing the debt against your home (a charging order)
Starting a Bankruptcy application for you (this is usually a last resort)

You can’t be locked up just because you’ve fallen behind on everyday bills or credit repayments.

Myth 4: “Ignoring debt makes it go away”

The truth: Debt doesn’t disappear if you ignore it; in fact, it usually makes the situation worse.

Interest and charges continue to build.
Creditors may eventually take legal action, leading to a County Court Judgment (CCJ) and other court action.
The longer you wait, the fewer options you may have to manage it effectively.

Facing debt early may feel scary, but taking control now gives you more choices and extra peace of mind.

Myth 5: “Asking for debt advice will hurt my credit score”

The truth: Seeking debt advice from organisations like Angel Advance does not affect your credit score.

We provide guidance and explain your options without reporting anything to credit agencies.
Getting advice early can prevent bigger credit issues later.

It’s better to know your options than to let myths keep you from taking action. For more information on your credit report, read our guide here.

The Real Horror? Not Asking for Help

The scariest thing about debt isn’t bailiffs, credit scores or court, it’s struggling alone. The sooner you reach out for help, the sooner you can start to feel in control again.

We can talk you through your options, whether that’s a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), or even just budgeting support. No judgment, no tricks, just honest debt advice.

Frequently Asked Questions (FAQs)

Can bailiffs take my car or essential items?

No. Bailiffs can take non-essential items like TVs, games consoles or other valuables. But they cannot take essential items, such as:

Beds, cookers or fridges
Medical equipment
Goods not owned by you
Tools of your trade, if their total value is less than £1,350 (e.g. a builder’s tools)

Your car can be taken and sold to pay a debt, but only if it does not meet specific protections, for example:

It has a valid Blue Badge displayed, or it’s a Motability vehicle
You need it for work, and its value is less than £1,350
The vehicle is also your home, such as a campervan
In most cases, a car on finance cannot be removed

How long does a debt solution affect my credit file?

Most negative marks stay on your credit file for up to 6 years. After that, they drop off, and you can rebuild your credit history.

Can I go to court for regular debts like credit cards or loans?

Yes, creditors can take legal action for unpaid debts through a County Court Judgment (CCJ). This is a civil process, not criminal, so there is no risk of imprisonment for ordinary debts.