| A Proactive Approach To Debt |
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| Written by James Robinson |
| Friday, 19 March 2010 19:21 |
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Nowadays it is a completely normal and common thing for somebody to be in debt, however it seems to be very difficult for people to talk about it and it is still very much a taboo subject. Some people can't even bring themselves to speak to friends and family about their financial issues. But this can also be seen as avoiding the issue, and if you do that while you are in debt, you will make everything worse. You should proactively resolve the problem.
Nowadays it is a completely normal and common thing for somebody to be in debt, however it seems to be very difficult for people to talk about it and it is still very much a taboo subject. Some people can't even bring themselves to speak to friends and family about their financial issues. But this can also be seen as avoiding the issue, and if you do that while you are in debt, you will make everything worse. You should proactively resolve the problem. * Do some calculations and work out whether or not you will be in this situation for the long term. Look at the difference between your income and expenditure. It is a problem if you spend more than you earn! You could find out that is isn't a massive long term problem, maybe you are on reduced hours for this month but will be back to normal next month? It could however show that you are in dire straits, and that it is a long term issue that you have no way of getting out of. * If you find that it is not a massively long term problem, you could speak to your creditors yourself and try to sort it out directly. If you are a good customer and make payments on time before now, they will probably help you with some sort of payment break or some other form of assistance, as long as you make it clear that it will not be a long term problem. * If you find out that it is a problem that will stretch beyond the short term, then you should look at getting some kind of professional help. An advisor will be able to help you by telling you exactly what your options are and how you go about fixing the problem. They will give you many options, such as debt management plans and more formal options like an IVA and others. These are the people who can offer you the most invaluable advice on your financial situation. You should avoid ignoring the problem and burying your head in the sand - this does not help! If you cannot pay them back still speak to them as it is part of building a good relationship with them and shows that you are being proactive in solving the problem. It is best to keep talking to them as in the future they will be much more likely to do you a favour if you do! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Help with IVA and debt |