I am currently in a lot of debt. Anyone have any advice on how best to handle this?
I am paying off a £3,250 personal loan, but I am still going into my overdraft each month by about £300. Anyone got any advice on how to fix this?
the very first step you need to undertake is a thorough budget planner to analyse your income and "essential" outgoings. you need to be ruthless about what is essential and what is optional - this might involve tv subscriptions or high level mobile phone contracts. you might be still paying for last year's new year resolution of a gym membership that you havent used since Feb 2010!
if there is no clear option here to help, including switching providers for utilities etc. you should contact your loan company and explain your difficulties, they are now obliged to be more considerate of your position but their obligation will start to fade if you can be seen as negligent (ie you should have contacted them 6 months ago).
if its early days they might be able to reschedule the loan term or might even offer better rates today than when you first applied.
if all this fails, you could consider speaking to a local citizens advice bureau or the consumer credit counselling service, both of which offer a degree of free assistance to people in financial difficulty - they might be able to help you present a stronger case to your current lender(s).
i do urge you though to take swift action before it starts to impair your credit worthiness as this will make current remedial action more difficult and in the future (when you are back on your feet) it will come back to haunt you.
dont panic, but do make contact with someone soon. | 01.27.11 @ 00:57