There is no doubt that there is a need for debt help and free advice to deal with the UK's debt epidemic. Even before the credit crisis the country was dangerously overstretched. Now that the panacea of cheap re-mortgages has been removed the true size of the problem is starting to reveal itself.
In addition to those that have overstretch... Read more
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Debt Early Warning, Debt Problem, or Debt Crisis? There are no exact definitions here, but I'll have a go at defining these states and the likely outcomes if you do nothing. Also what steps you need to take to get yourself free of debt. Debt Early Warning Do you worry about the amount of debt you have (whether secured or unsecured). Is it starting to represent a significant proportion of your monthly budget? (If the word budget is a strange one to you then you have more work to do before working out how serious your debt problem is). Can you only afford luxuries like holidays or meals out by putting them on a credit card? If you answered yes to any of these questions but you are still making all your regular payments then I would suggest that you are at the "Debt Early Warning" stage. You really need to do your monthly budget and a monthly balance sheet of all your debts to see if your debt situation is getting worse or better. If your monthly budget shows a deficit or your your monthly total of debts grows each month then prompt action is required to get your situation under control. Do nothing and you are headed down the path to debt problems and crisis. Trim your spending until your budget shows an excess of income over outgoings and your debt total decreases each month. You will have started the path to being debt free. Debt Problems Does your debt problem stop you sleeping at night? Are you cutting back on essentials such as food and clothing to pay your debts? Can you only make the minimum payments on your debts by borrowing more? Answer yes to any of these and you have serious debt problems. If you have reached this stage then the most likely outcome is that you will need to use a formal debt solution, such as a debt management plan, Individual Voluntary Arrangement or bankruptcy. However if you do your budget and work out that you can make your monthly payments without starving yourself then there may be a (long) road ahead of you to becoming debt free. I would seriously suggest getting some free debt advice to consider your options, as what many people consider to be the honorable thing to do (struggling to pay off their debts) can actually be very harmful to you and your family in the long-term. Debt Crisis Have you started missing payments on your debts? Do you struggle to feed your family or pay other basic bills? Have threatening letters and phone calls started? If so, then you are most definitely in a debt crisis situation. You need to get good free debt advice URGENTLY to plan your escape from this situation. Putting off getting advice is only prolonging the misery and puts off the day when you can be debt free. You are most likely to need a formal debt relief solution, but consult with a qualified advisor before doing anything else.
People that are in debt are often scared of debt collectors, but in fact (unless you have borrowed money from a loan shark or the criminal underworld) they have very little to worry about. Debt collection protection laws exist i... There are many people that will offer advice on your debt problem. When people give advice it is usually affected by their own prejudices and experiences. Therefore if you are in debt and looking for credit advice and debt help ... There is a (usually) unwarranted shame attached to getting into debt. A lot of people feel so embarrassed about their debt problem that they will do anything to keep it from friends, relations, and even their family. Unfortunate... If you're in the middle of (or heading towards ) a debt crisis you need to get help to clear your debt now! If you ignore the problem then in 6 months time you will be no nearer to resolving the situation, and it will probably b... If you are experiencing overwhelming debt problems it would be sensible if all of the debt relief solutions available to you were free, after all it's not as if you have a lot of spare money. Unfortunately not all debt relief is... People borrow on credit cards because it is easy, once you have the card you can borrow money without having to fill in a form. There is also the temptation to regard the available balance on your credit card(s) as money that yo...
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