Many of us find ourselves in a position where we are struggling to repay our debt. The question is what we should do?
Struggling to Manage Debt
The first thing is to prioritise our debt. There are some bills which should be paid first, for example mortgage/ rent, council tax, gas, electricity and food are all examples of priority expenditure which must be paid before even thinking about debt problems.
The next thing to do is to make sure we are not spending excessively. Is sky movies essential or could money be saved by reducing your package? When you look closely at you outgoings you can be surprised at ways in which you can cut your overheads. There are a lot of good deals on at the moment so it may be cost effective to change over some policies, home or car insurance or your gas and electricity supplier.
Another way of cutting cost is shopping once weekly and writing down what you want to buy. This means we do not purchase items that we do not need.
The next thing to do is to look at your debt. What is the minimum payment you have to make? Are you struggling to make this payment every month because the interest has grown too large? If so and you're struggling to manage debt then call Debt Support Trust for advice on 0800 085 0226.
Debt Help for Struggling Debt Problem
Once you have cut your overheads and cut your expenditure if you are still struggling with debt then it's time to seek professional debt help from a registered charity.
Always speak to a registered charity offering free debt advice. The last thing you want to do is to add anymore to your debt.
There are a number of different options out there for people struggling financially though what is best suited to you can only be advised once they have gathered information about you.
A qualified debt advisor would need to know your income and expenditure, the amount of unsecured debt you have. They will also want to know about any assets you may have, including any equity in property. Once this information is gathered they will advise you on the best way to become debt free.
For everybody the advice varies, as your own personnel circumstances have to be taken into account fully and tailored advice should always be provided.
Solutions when Struggling with Debt
It may be that our qualified advisors think you should negotiate with creditors directly. They will give you a letter template to help you do this.
It may be you are suitable for a Debt Management Plan (DMP). If this is the case they will give you details of how to enter a Debt Management Plan for free without paying fees.
The qualified debt advisor may think you are best suited for an Individual Voluntary Arrangement (IVA), to enter this solution you will need an insolvency practitioner, they can advise you of one or you can choose to find your own.
Bankruptcy may be the best solution, in which case we will help to get the paperwork, explain how to proceed and provide support in completing the documents.
There are a variety of different debt solutions available in the UK and you may be suitable for several of these options. If you are then, you are able to make a decision about which route you take. Ultimately, if you're struggling with debt you may need to speak to somebody for help. Please ensure you contact a registered charity who will not charge you a fee, such as Citizens Advice Bureau or telephone 0800 085 0226 to speak to somebody at Debt Support Trust.
We're here to help.