How to Avoid the Most Common Mistakes With Debt Problems
The first thing to remember is that you are not alone! Time and time again I hear people say, "Why didn't I just face up to my debt problems".
The simple answer is that is so often the easiest option to just pretend that the problem doesn't exist, but when you find out how to solve the problem you will realise that there is light at the end of the tunnel.
Many people tend to ignore the problem in a hope that at some point it will all just go away, but hey, it never does! There are many ways to deal with money problems and in a moment I will give you some ideas of the kinds of things that you can do to get your finances back on track.
Firstly we should mention the kinds of mistakes made and you may find that recognise some or all of them, but don't despair, it's never too late to sort your money problems out, but continuing to ignore them will just make things worse.
If a debt crisis enters our lives due to the breakdown of a relationship, the loss of a job or illness, we can be so caught up in the emotions of the situation to dismiss the practicalities of dealing with our financial commitments.
STOP! Your situation will get a whole lot worse is you don't take steps to stop yourself from spiralling into financial meltdown.
The most common mistakes made are:
Dealing with debt problems maybe something that you don not feel equipped to do on your own and if that is the case, read on to end and I'll tell you how to get help with debt problems, that won't cost you at all, as in effect, your creditors (the people that you owe money to) will pay indirectly, in order to get some of their money back that you owe them.
If you decide that you want to deal with the situation yourself, then you need to sit down and write out a list of all the companies that you owe money to, including account numbers and how much you owe.
Total the amount that you owe and if it comes to £5000 or more of unsecured debt (I.
E Credit cards, loan, car finance, overdraft etc), not including a mortgage or loans secured on your home, then you have various options.
If your debts are less than £5000, you would be best placed to phone all of the companies involved to explain your situation and make offers of a reduced monthly payment over a period of maybe 6 months, whilst your life returns to normal.
In most cases, your creditors will be supportive, understand your situation and so long as you keep to your promises to pay, they will be happy to support you on your road to recovery.
If your debts total to £5000 or more, then your options are a little wider.
The option detailed previously is still one that you can try, but the law states if you cannot afford to repay your debts, then options for help with money problems can include debt management plans or individual voluntary arrangements (IVA).
These involve a calculation being made to establish what and how much you can afford to repay and an agreement is drawn up with your creditors to make small payments towards a reduced total debt, which means that you can write off debt that cannot afford.
In order to gain the benefits of an IVA or debt management plan, you will need to contact a debt counsellor, who will to put the agreement together for you.
This process is straight forward, stress free and will help you to stop worrying about money problems.
The simple answer is that is so often the easiest option to just pretend that the problem doesn't exist, but when you find out how to solve the problem you will realise that there is light at the end of the tunnel.
Many people tend to ignore the problem in a hope that at some point it will all just go away, but hey, it never does! There are many ways to deal with money problems and in a moment I will give you some ideas of the kinds of things that you can do to get your finances back on track.
Firstly we should mention the kinds of mistakes made and you may find that recognise some or all of them, but don't despair, it's never too late to sort your money problems out, but continuing to ignore them will just make things worse.
If a debt crisis enters our lives due to the breakdown of a relationship, the loss of a job or illness, we can be so caught up in the emotions of the situation to dismiss the practicalities of dealing with our financial commitments.
STOP! Your situation will get a whole lot worse is you don't take steps to stop yourself from spiralling into financial meltdown.
The most common mistakes made are:
- Initially opening the post, but hiding the things that you don't want to read or cannot deal with in the back of a draw.
- This progresses to not even opening the post and just letting it mount up because we can't face reading the default notices and final demands that start to arrive.
- The phone starts to ring more often than usual, with companies chasing you to pay your bills, so you stop answering the phone in an attempt to block the pressures out of your life.
Dealing with debt problems maybe something that you don not feel equipped to do on your own and if that is the case, read on to end and I'll tell you how to get help with debt problems, that won't cost you at all, as in effect, your creditors (the people that you owe money to) will pay indirectly, in order to get some of their money back that you owe them.
If you decide that you want to deal with the situation yourself, then you need to sit down and write out a list of all the companies that you owe money to, including account numbers and how much you owe.
Total the amount that you owe and if it comes to £5000 or more of unsecured debt (I.
E Credit cards, loan, car finance, overdraft etc), not including a mortgage or loans secured on your home, then you have various options.
If your debts are less than £5000, you would be best placed to phone all of the companies involved to explain your situation and make offers of a reduced monthly payment over a period of maybe 6 months, whilst your life returns to normal.
In most cases, your creditors will be supportive, understand your situation and so long as you keep to your promises to pay, they will be happy to support you on your road to recovery.
If your debts total to £5000 or more, then your options are a little wider.
The option detailed previously is still one that you can try, but the law states if you cannot afford to repay your debts, then options for help with money problems can include debt management plans or individual voluntary arrangements (IVA).
These involve a calculation being made to establish what and how much you can afford to repay and an agreement is drawn up with your creditors to make small payments towards a reduced total debt, which means that you can write off debt that cannot afford.
In order to gain the benefits of an IVA or debt management plan, you will need to contact a debt counsellor, who will to put the agreement together for you.
This process is straight forward, stress free and will help you to stop worrying about money problems.
