Probably the first thing you need to know if you are in debt is that you are one amongst many. Okay, so the only debt you are worried about is your own but, just sometimes, it helps to know you are not alone.
The next thing you should know is that getting help is probably easier than you imagine. There are a number of agencies out there who will give you good and reliable debt advice. They will also help you to manage your finances in an attempt to prevent a recurrence of your current financial difficulties.
The type of debt you have amassed is, largely, irrelevant; whether in the form of bank loans, overdrafts, store cards, or credit cards, there are solutions out there.
Debt Management Programmes
When you are in serious debt there is an overwhelming feeling of powerlessness; you owe money that you don’t have but, no matter how long you ‘sleep on it’ when you wake up the debts are still there and the money isn’t.
Debt management programmes are a method of bringing you back in control of your finances, whilst at the same time reducing the amount of money you have to pay out every month. Debt management is particularly useful if you are in receipt of a regular income and the amount you owe is not too large. You will work with a personal adviser who, after analysing your income against your total outgoings, will negotiate with your creditors to bring you repayments down. You will pay your debt manager an agreed monthly sum, out of which he will pay your creditors at the lower agreed rates. One of the most attractive aspects of this system is that your creditors negotiate direct with the debt manager, rather than with you. This means that the payment-demanding phone calls and letters will gradually disappear.
An IVA, or Individual Voluntary Arrangement, is a debt solution that is used where the most probable alternative is bankruptcy. In an IVA, your creditors will agree to write off part of your debts, allowing you to make monthly payments that you can afford over a period of five years. This debt solution is most effective if you have large debts, over, say, £15,000 and no way of paying them at the current levels.
Finding Debt Solutions
Financing your Debt
It is important to remember that organisations that provide debt solutions are businesses, that is, they earn their money by helping you. Having said that, they are also aware that the reason you are seeking their help is that you can’t afford to pay your current debts, let alone new charges. For this reason, a number of payment solutions are on offer so there will be one that is right for you.
The main message here is that there are many thousands of people in the same situation as you and, that being the case, there are ways on offer to help you get off this treadmill.