The 2016 referendum seems like a lifetime ago, but with the government still struggling to agree a deal with the EU on how the UK will stand after Brexit, you might have been wondering how your finances, in particular debts, will be impacted by Brexit. There’s a considerable amount of speculation on how the UK will be affected by Brexit; topics ranging from immigration, the cost of food and the housing market are all bound to cause a stir in many households.
Does anyone know what will actually happen post-Brexit?
Of course, it’s difficult to say; Brexit hasn’t happened before. The changes we experience are likely to be pretty much uncertain until if/when we reach an agreement on our exit.
The laws that the UK have in place suggest that in terms of debt, not much will change. Although Consumer Credit Law originated in the EU, it’s now been written into UK Law and will still stand in post Brexit Britain. This suggests that no immediate change will happen with debt and how it’s managed, however, post Brexit, the government could amend laws to make them more ‘our own’, rather than the older ones guided by the EU, which could cause subsequent changes.
One change that we know will happen, is that should you be unhappy with a dispute raised in UK court, you won’t have the ability to take your claim to the European court of Justice.
Brexit means I can’t afford to pay my debt – what now?
The difficulty we’re facing at the moment is uncertainty. Each economist’s opinion on Brexit will differ, some predicting our economy to flourish, others that it will flounder.
Part of the problem is that when we voted in the referendum, no one expected Brexit to be happening in the midst of a global pandemic that’s already caused vast amounts of unemployment and many problems with the economy, that could have already impacted your ability to repay your debts.
If you’ve been impacted by Brexit, maybe you’re facing redundancy due to your employer relocating for example, we can help. We’re here to offer debt advice and help take control of your money worries and we’ll tailor our advice to your needs and situation, meaning we’ll consider anything you advise us of when recommending a debt solution.