Debt worries can control your life if you let them. You will know if you have a serious debt problem (you’re missing payments etc.) and this IS something to worry about and take action to resolve. However I’m sure that there are lots of people that have significant levels of debt that can easily afford the payments but still spend a lot of time worrying about it.
Debt Worries – Don’t Worry, Take Action
If you are worrying about your level of debt then take action instead. Do a full budget and look at ways that you can spend less so that you can pay off your debt more quickly. Investigate whether you can move any debts to get a lower rate of interest. Consider carefully whether a debt consolidation loan would be useful for you.
Consider whether it is possible or realistic to increase your family income to make paying off your debt quicker/easier.
When you have been through these steps then relax as much as you can. If you are reducing your debt each month then you are doing well. Stress is bad for your health and could actually contribute to you losing your job.
Tags: budgeting, Debt Advice, debt worries
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
