Personal Debt Problems

By October 15, 2010Debt Solutions

I recently came across a list of some of the problems that can be caused by personal debt and whilst, of course, being in debt is primarily a financial problem, the side issues can be chilling and very, very personal. The solutions are out there if you search for them: if you have a property, for instance, there are plenty of companies that will help you achieve a fast house sale. And, as ever, some people’s problem becomes other folks’ solution, those fast house sales come about because the properties are sold at lower than market price – thus giving first time buyers access to the property ladder. There are plenty of repossessed houses for sale if you know where to look for them.

Let’s just take a quick look at those issues raised by personal debt – you might be surprised at how far reaching these can be; unless, of course, you find yourself in this very situation.

Stress

Well, this one won’t surprise you at all – being in debt weighs heavy on the mind. You daren’t go sick from work, despite how ill you might feel. The problems follow you to bed so you don’t sleep, which makes you feel even rougher. Stress is recognised as an illness of our fast and furious 21st century, being in debt just makes that stress worse.

Money Taken at Source

Even though being in debt is now a common problem, most people still see talking about it as a taboo. If you owe a large amount of money the person you owe it too might order a court order to get debt instalments paid from your wages before you get them yourself. This is known as wage garnishment. Point number one – if you’re struggling for money you can ill afford to lose any of your wages and, point number two, having your employer know about your financial situation can feel hugely humiliating. And, although your employer can’t legally fire you for having one garnishment, he can fire you if you have multiple garnishments

Divorce

Debt is one of the major driving forces behind the divorce statistics. Almost half of all UK marriages end in divorce, with 132,361 divorce petitions in England & Wales in 2009

Inability to Purchase a Home

A poor credit rating will negatively affect your ability to get a mortgage.

Eviction

When debts mount up it can be tempting to shift the money around, paying off some expenses at the cost of others. An eviction on your credit report will do little to help you get yourself back on your feet again.

Emotional Breakdown

Some people cannot handle the relentless pressure put on them by demanding creditors.

Murder

Did you know that debt and the accompanying emotional stress is one of the major causes of murder in the UK? accompanying

This does not make for comfortable reading does it?  However, you’ll feel a whole lot better if you take control of the situation.  As the very minimum we would suggest the following:

  1. Acknowledge the problem
  2. Do not be intimidated
  3. Pay debts that secure the roof over your head first
  4. Get free impartial debt advice
  5. Treat commercial debt relief companies with caution
  6. Do not rule out bankruptcy
  7. If you are thinking of taking on something like an IVA make sure you understand all the costs and charges up front
  8. Stop all unnecessary spending now
  9. Check out the Consumer Credit Counselling Service
  10. Find a form of therapy other than shopping

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