An August article on Telegraph?s website shares the scary fact ?that Britons owe more money that the entire economy can generate in a year? and that around ?2.5m people are very concerned about their ability to manage their debts.? This being the current situation, it may be advantageous to ask yourself a few questions: Are you making late repayments? Is more money going out than is coming in? Are you being hounded by credit calls? If you have answered ?yes? to any of those questions, then take the next step in debt help which is filling out a spending log.
Most credit counsellors who have your best interests in mind will have you complete this enlightening exercise. With any spending log, it is suggested that you spend the better part of a week writing down all money that is spent, including where and how much. After this week, you should be able to identify trends and see where you can tighten the money belt. Many debt help specialists will also suggest initiating contact with your creditors. Persistent phone calls to a creditor, before they persistently call you, with an explanation of your situation and your desire to repay the loan may persuade them to offer some debt help by lowering interest rates or by suspending payments.
If, however, you feel as though you cannot come up with the debt help that you need on your own, there is outside debt help. If you decide to enlist the debt help of others, however, do your homework. Many companies that offer debt help in the form of debt negotiation/settlement, debt relief, debt consolidation, and insolvency charge hefty fees, which you obviously cannot afford. Before handing over your personal information, you will want to research how the suggested debt help will affect your credit report, and what you can do to ameliorate that report in the meantime.
Debt management is one form of debt help offered. Debt negotiation means that you hire a company to work for a reduction in what you owe on an unsecured debt. Some creditors are willing to accommodate in order to recuperate some of their money - less repayment is better than no repayment at all.
Another debt help option is a debt relief order. This means that someone works on your behalf to solve your unsecured debt issues. Debt consolidation is another form of debt help, in which you take out a loan, at a lower interest rate to pay off your other unsecured loans. By doing so, you will simplify your financial life: one lender, one due date, and one monthly repayment. The last resort for most is insolvency or bankruptcy. This action stays on your credit history for around ten years and should most definitely be the last option you choose, despite how it is so positively advertised.
If you are suffering from debt pressures, you are not alone. There is a lot of explanatory literature and useful help available to those willing to do some work. But, debt help does require that you are proactive and ask for help when you have recognised that you need it.