At Debt Support Trust we're faced with challenging questions, but we've spent the last week reviewing some of the "Big Issues" which we face on a daily basis. We thought this would be useful for other people to realise they aren't alone with their money problems.
The four main areas where we most often got asked for our support were, "what is the best debt solution", "council tax issues", "Issues with existing debt providers" and "payday loan questions".
What Debt Solution Is Best For Me?
That all depends on your own personnel circumstances. The right debt solution for one person may be the wrong advice for another. The only way anyone can give you debt advice is once they know your own personal and financial situation. A debt advice must be aware of how much you owe, how much you earn and how much you spend. They must also be aware of any assets you have. Once a debt advisor has gained this information then they will be able to advise you on the best debt solution for you.
This was the main reason people contacted Debt Support Trust - to find a way to become debt free.
Council Tax Debt
Council tax is what is known as a priority debt and should you fail to make this payment the debt can quickly be escalated debt onto a debt collection agency. This affects so many people that we speak to on a day to day basis. Once with a debt collection agency you have two options; ask the council to take the debt back (in extreme circumstances they may do this) or negotiate with the debt agency to offer them what you can afford to pay each month. If they do accept an offer of negotiation then it is imperative that you keep to your end of the deal and make your regular contribution. Failure to pay council tax, which is a priority expenditure each month, was a major problem for many people.
Issues With Debt Solutions
There are many horror stories regarding debt solutions in the debt advice industry and the majority of which are because people didn't know the full extent of the solution they were entering. We always recommend using a registered debt advice charity and ensure you're aware of all the pros and cons of each debt solution as well as any fees which may be involved. No matter what debt solution you enter, your credit rating will be affected with a default being added to your credit file for 6 years.
Pay Day loans
The advice given about pay day loans is on the increase. This is due to the fact more people are turning to short term lending. As long as they are able to reasonably pay the full amount back, once they are paid, then it can be a resolution to a short term problem. However for many more people they fall into the trap of having to continually borrow to get through the following month and the situation can quickly spiral out of control. No debt advisor should recommend getting into further debt but most understand why people find themselves in these situations.
When the problem with payday loan debt occurs, it doesn't matter how the debt was incurred, just that the contractual payment isn't affordable. People ask for our help to resolve this.
Our debt advice team deal with a number of different issues relating to debt from the under-occupancy tax (bedroom tax) through to credit card debts. The top 4 issues were just the most common issues people had last week.