Debt can overwhelm you if you let it get out of control. Unfortunately it’s what most people do as they either don’t realise they have a problem or don’t want to admit they have a problem and they leave it too long before taking action.
In this article we highlight the classic signs of debt problems and what to do if they appear and you do in fact have a problem.
The signs that indicate a debt problem
No rocket science here, the signs are pretty obvious and on their own on the odd occasion do not necessarily mean you have a debt problem but taken together and happening on a regular basis would mean you almost certainly have a problem.
Here’s what to look out for:
Can you only make your minimum payments to your cards every month?
Do you have a reasonable idea of how much debt you owe?
Have you recently been refused credit of some kind?
Are you struggling with essential bills?
Are cheques and direct debits bouncing and are you incurring penalty costs?
Do you have more going out than you have coming in?
If you find your answers to these questions are not what they should be then you need to take action to solve your problem before it gets worse.
Look for professional debt advice
It’s the sensible thing to do. Experienced debt advisors will listen to your problem, make an assessment and present you with a range of the best options for you to consider. Getting face to face advice, or even over the phone is the best way to find the solution that will suit your own circumstances.
Remember that experienced debt advisors have seen it all before and they just want to help.
There’s a wide range of debt solutions
A debt management plan enables you to agree a reduced payment with your creditors which you pay back over a longer period of time.
A debt consolidation loan will pay off all your other debts and you only then have one monthly payment to one lender.
The debt arrangement scheme works on a similar basis to a debt management plan but is a formal and legal agreement between you and your creditors to repay your debts at a rate you can afford, albeit over a longer time period.
A trust deed is a Scottish debt solution that allows you to agree an affordable monthly payment with your creditors which is usually for three years and you can then write off the balance of your unsecured debt. Scottish trust deeds are administered on behalf of the Government by the Accountant in Bankruptcy.
Bankruptcy or sequestration as it is called in Scotland is a solution where you just cannot afford to pay off your debts and allows you to write off what you can’t afford and make a fresh start.
Take action now
The important aspect to all of this is to take action. If you don’t it is likely that your debt problems will get worse. If you do and you take professional advice you can start to improve your financial situation and get on the road out of debt.