Debt Problems - What To Do And Where To Get Help

The truth is that no debt problems are completely unsolvable. Although it may not be quick or easy, there is always a way out. It is true that debts can be urgent and it's very easy for them to spiral quickly out of control. But it's equally true that the quicker deal with them, the easier they will be to deal with.

Being in debt is simply a financial issue, it can feed directly into all parts of your life. The solution is The many and varied, from simple budgeting, to cutting your interest rates, or just getting free debt advice or 1 to 1 help. Finding the ideal debt management uk based help can seem to be a daunting prospect, but it needn't be.

Have you reached your own personal debt crisis yet?

There are at least two ways in which you can deal with debt. The right one for you will depend on whether you have a debt crisis or if you simply just worry about having a large amount of debt. The definition of having a debt crisis really depends on the person you ask. However, if you answer yes to any of the following, it's likely you are facing one:

1. Are your total debts (not including your mortgage) larger than your annual (after tax) income?
2. Do you struggle to pay for the basic everyday expenses, like rent, mortgage, electricity bills and credit cards?

Your debts may still be large, but if you can continue paying their (even the bare minimum), you're not classed as being in debt crisis, and different solution will apply.

If you are in a debt crisis

The first step is not to panic. As though one who has reached sufficient debt levels to find a way through them. You can start by dealing with directly, in order to make yourself feel better and so speed the process up.

What about bankruptcy?

And even if you are facing a crisis, the ultimate option of bankruptcy is pretty rare, but may still be a final option you need to consider. If you're facing from the pressure of unpaid loans, it can be a stressful time, and may even have caused sleepless nights. It's important that you carefully research the matter, and receive the right advice. Bankruptcy should not be taken lightly, but something which you may have thought about after many years of stress and pressure from lenders.

Facing reality is a great start

If you're already in crisis, you're here and reading this so you've already made an excellent start two facing the reality of your situation. There are still many who just close their eyes to the reality (even though it's blindingly obvious for outsiders trying to help them), and this is the worst thing they can do. The fact that your going to sort the problem out, means that you'll be much better off in the long run.

If you have debt problems but not facing a debt crisis

It's not a good idea to visit a debt counselling agency or charity. This is common sense, but in many cases the services will already heavily oversubscribed, with long waiting lists. You should only consider this if you're in urgent need and have not found any debt management uk solutions elsewhere.

Debt counselling will involve negotiating with your creditors and possibly filing for bankruptcy, applying for iva advice or a Debt Relief Order. These are very serious measures, and are primarily designed for those who have no other alternative.

These options are effectively saying that you're no longer within the current credit system, and there may also be implications for your credit score and reduced access to certain financial products and services.

Are you hiding from your debts?

Is all too common for people to hide from their debts. Whether that is not informing their family, friends, loved ones or sometimes by not being honest with themselves; for example, not opening bank letters to read statements). If this is you, it's time to come out into the open. You will only be able to sort all of your debt problems out, if you have some understanding of the scale of them. You may think that you feel better not knowing the extent of your debt, but not take stock of your current debt levels could certainly lead to financial problems in future.

Are you hiding your debt from a partner, family or friends?

Sometimes it's much easier to break any news like this to love ones if you can show that you're really determined to improve your situation. If you're prepared to discuss what debt management uk solutions you can choose from, and not just your debt problems, you are more likely to be seen in a better light by those around you.

It's far easier this way. If you are prepared to take positive action, the question will not be 'can I ever get through this horrible mess?', but 'I will get through these issues like this within x months using this option, what do you think?'

Do you have any physical, mental health or relationship issues?

For some people, being in severe debt isn't simply a financial problem, it may be the result of external factors like (un)employment, health, housing or even family problems which have got out of hand. Poor debt management isn't the end of the world and with the right advice is completely solvable.

Having money troubles can lead to many issues, like taking the roof over your head, depression, telling your confidence, society, stress, family breakup and in extreme circumstances, even suicide.

If you're feeling a long and ongoing depression, there are charities like the Samaritans which can offer help, relationship issues can be dealt with organisations such as Relate. The provision of cancer advice can be provided by the Macmillan charity.

Are you still being chased for debt which you think isn't yours or is more than 6 years old?

Unpaid debt is usually passed on by lenders to debt collection agencies. Unfortunately, sometimes these companies chase the wrong person, simply basing their search on surname. If you believe you've been mistakenly singled out by a debt collection company (because of poor debt management uk collectors can keep trying to contact you), you may received a final notice letter or phone call demanding the money owed. If this is you (and you're not responsible), then there's no need to panic, because the onus will be on them to prove you owe the money, not you.

For personal loans, credit/store cards or bank accounts where no contact has been made for 6+ years, lenders usually will not take any further action against you. Although for secured loans like mortgages, this has been increased to 12 years and for many tax debts the time is indefinite.

Also, remember that contact may mean anything, for example, making a payment; this then resets the clock. The Courts could also extend the time, e.g., if lenders have tried to contact you by taking all 'reasonable' steps. And there are some lenders who'll still chase you for money owed after the period.

If you need debt management uk help, then contact us.