One of the most important parts of resolving a debt problem is to get the right level and type of support. Trying to do it all on your own will make it much harder.
Debt Support – Where to Turn?
One of the most important sources of support is your family or friends. Obviously you can’t ask them for support with something if you haven’t told them about it! If you are keeping your debt problem a secret from those close to you then you need to seriously consider whether you should tell them about it.
Other organisations exist to help with debt problems specifically. All Citizens Advice Bureau will have access to a specialist Money Advisor that will be able to help. The Consumer Credit Counseling Service offers a phone-based help service. Reputable debt management companies like the Payplan Partnership can also be useful.
If you are really getting desperate about your debt problem and are becoming depressed you could consider calling the Samaritans.
It is very important to remember that you are for more important and valuable than your debt problem. If you take the correct action you will be able to emerge from a debt crisis stronger and happier than before.
Tags: Debt Advice, debt crisis, debt support
Debt collection agencies will often threaten people that owe money with prosecution for fraud. Unfortunately it is just one of the tactics that they use to frighten people into paying money that they can’t afford.
Debt Fraud Prosecution – How Likely Is It?
In the UK, prosecution for debt fraud is only likely in the most extreme of cases (e.g. applying under someone else’s name or saying that you earned 100,000pa when you actually earned 5,000). Even some quite extreme cases don’t come to court. Therefore if a debt collection agency is threatening you with a fraud prosecution they are almost certainly lying.
Ignore the threats and concentrate on working towards a solution to your debt problem.
Tags: Debt Advice, debt collection agencies, debt fraud, Debt Problems
If you have significant debts that you have defaulted on then you may have large debt charges applied to your accounts. These will quickly make your debt situation worse.
Debt Charge – Stopping or Reducing
If this is happening to you then you need to take action to regain control of the situation. People that you owe money to will often stop adding penalty charges/interest to your account if they can see that you are taking steps to resolve the situation. One of the best ways to do this is to engage the services of a reputable debt management company. In the UK one of the best ones is the Payplan Partnership (I have personal experience of using them). They can control the process of negotiating with your creditors and can set you up in either a debt management plan or an individual voluntary arrangement. If you are in an IVA then adding a debt charge to your account is not allowed.
Tags: Debt Advice, debt charge, Debt Problems
