Why it’s Good to Get Help with your Debt Problems?

Nobody takes out credit with the intention of getting into debt problems. However, with the current financial turmoil more and more consumers are finding they have a significant issue with the amount of money they owe. Instead of hiding away from your debts, the best way of tackling them is to seek help to solve the problem.

Do I Have a Debt Problem?

Many people might think that they’re in a crisis situation with their debts. But even if you have significant debts, as long as you can comfortably afford the repayments you don’t necessarily have a problem.

When your debts do become an issue is if they start affecting every aspect of your daily life. If you are struggling to pay your mortgage, rent or utility bills or your combined debts are more than one year’s salary, you could be facing a problem. However, you can still rectify the situation. The earlier you face your problems and seek help, the better it will be.

It’s Good to Talk

There’s no point ignoring your problems, as they won’t go away. You might be worried about how your friends and family will react when you tell them, but they’ll probably be far more sympathetic and helpful than you imagine.

If you think you’re going to be unable to make a monthly repayment then it’s a good idea to contact the lender in advance. They’ll look far more leniently on you if you’ve talked your problems through rather than just waiting for the missed payment.

When your debts have gone pass this initial period, it would probably be helpful to talk about your issues with a free debt-counselling service. There are a number of charities which provide a free and impartial service and can help you find solutions. These include the Citizen’s Advice Bureau and National Debtline. There is also free legal advice available for those in debt from various internet sites.

Debt charities can provide a wide range of services, from helping you set up a monthly budget to contacting creditors and arranging to freeze interest payments. They also offer advice if you need to take further action and set up a Debt Management Plan or IVA.

The First Step

Once you’ve made that initial first contact and admitted that you’ve got a debt problem, you can start to plan for the future. The first task you need to complete is a list of your debts and the outstanding balances. This might be a scary prospect, but you need to understand exactly what you’re dealing with.

You then need to work out exactly how much income you have each month compared to how much you spend on the necessities, including food, utilities, travel, etc. Once you know what you’re spending, you can work out how much you have left to pay towards your debts and start planning your debt-free future.