People in debt can find the problem all consuming. Debt can cause stress for you on a personal level and put a wedge between people in a relationship. Feelings of guilt and anger about debt can lead to sleepless nights and depression.
Some people don’t mind being in perpetual debt and can take it in their stride, but for many others the feelings associated with being in debt are all negative; and they need to get back on track not only for their bank balance, but also for the sake of their mental health and their relationship.
Fortunately, however bad your debt situation has become there will be a way out of it. At the very worst, you could declare bankruptcy and have your debts written off, but this isn’t without consequences and shouldn’t be entered into lightly.
Each person’s debt situation is unique, but for most people a good starting place is to get some debt advice from a debt management company. Depending on the level of your debt, they can offer you different solutions, from a debt management plan to debt consolidation. A debt management plan is where you make one monthly repayment to the debt management company, which then redistributes that amongst your creditors on your behalf. A debt management plan can go a good way to lift the burden of debt from your shoulders, as long as you meet the monthly payments.
Another solution is a debt consolidation loan. This is where you take out a loan to pay off all your existing debts. While it may not seem like the most sensible option to take on more debt to pay existing debt, it again offers clarity and the stress of having numerous creditors chasing you is taken away.
You may not actually need to go to a debt management company – you may be able to turn things around yourself. A basic principle to bear in mind is that if you spend less than you earn you will gradually build up a buffer of cash that you can use to pay off your debts. Of course, this is much easier said than done, and it will take a long time to pay off outstanding debts and get back into the black, but it isn’t impossible. Strict budgeting really helps, as does finding the best deals on utilities, mortgages, credit cards and banking.
If your debts are causing you stress, the most important thing to do is take a proactive step towards clearing them and you’ll find that the angst about it will be reduced immediately.
What are your thoughts on how to get the best debt advice?