Finding a Debt Solution

19-Apr-2008

In the March 2008 article, Deeper in Debt, by Ian Paul of Politics Show, we learn that debt in the UK has risen by 170 per cent in ten years. More staggering is the fact that ?most of us will have to work for 70 days each year before we have paid off the interest (only interest!) on our personal debt.?  And maybe the most frightening is that he references a survey brought up by the MP that shows that ?more than half of 14 to 18 year-olds are in some sort of debt by the age of 17, while more than a quarter of them saw credit cards and overdrafts as a way of increasing their spending power.?  This mentality, grouped with slowing house sales, tighter credit restrictions and an uncertain financial future are all signs that you should begin working on a debt solution now.

If you are in debt, whether mild or severe, you should begin work on a debt solution of one kind or another. There are very easy steps that you, without any professional help, can take now towards a debt solution and yet other debt solutions that are best guided by a financial advisor of some sort. The simplest start on a debt solution is to fill out an expenditure log. Once you honestly cut what you can, it is time to write up a budget. Microsoft Office Online offers some free personal budget templates to get you started on your debt solution. Once you have drafted this simple debt solution, stick to it. Some time of careful and cut-back spending is much easier to deal with than the statistics mentioned in the first paragraph.

As mentioned, there are other forms of debt solution that involve a third party: Debt consolidation, debt negotiation, individual voluntary arrangements (IVAs), and bankruptcy are a few of them. A debt solution from this list, however, will cost you money to execute and will most likely negatively affect your credit score, which then affects future borrowing. If you are in over your head though, contacting a reputable financial adviser who can explain and guide you through these more extreme debt options is essential.