One of the most common questions we hear at Debt Support Trust is, “I don’t know how much debt I actually have”. For many people that don’t have a debt problem, they may not fully understand how this can occur, but it’s actually not surprising.
When the cycle begins and money is borrowed and repaid, there’s no concern about the imminent arrival of a creditor statement landing on the doorstep. We know how much money has been borrowed and needs to be repaid. But, when a person becomes overstretched financially or a life changing event occurs, such as separation or loss of a job, it can be difficult to keep track of just how much money has been borrowed.
Being in debt and knowing the level of debt has grown to an unaffordable sum can result in people avoiding opening letters or answering telephone calls from creditors. This only accentuates the problem, but it’s the primary reason people don’t know how much debt they actually owe.
How to find out your level of debt?
The first step in any process to deal with debt is admitting a problem exists and that a solution is required if you’re ever going to be debt free again. Ultimately, an issue with outstanding debts isn’t going to disappear and it’s best to tackle the predicament head on.
If you have moved property or have not heard from your creditors for some time, then you have two options to find out your level of debt. The first is to contact the creditor and ask for an up to date balance. Most people will find this intimidating, but it’s the most accurate way to understand the outstanding debt. The second option is to apply to see your credit file via a credit referencing agency. Most credit referencing agencies will offer you a free trial, however, you’ll have to cancel before the end of the trial or you’ll be charged monthly for the service. One of our favourite websites is http://www.checkmyfile.com/ as it allows you to see reports from multiple credit referencing agencies in one place.
Know your debt? Get a Solution
Once you know how much debt you have, then you’re in a position to understand what debt solutions are suitable for your circumstances. Any debt advisor will struggle to give accurate debt advice without knowing how much debt is outstanding.
You may be suitable for a number of different debt solutions. It’s the role of the debt advisor to explain every option, detailing the advantages and disadvantages of each solution to empower you to make an informed decision on how to deal with the unsecured debts.
You can speak to a debt advisor in confidence at Debt Support Trust on 0800 085 0226.