Debt can quickly become a problem for people and once that problem starts it generally gets worse unless something is done about it. Unfortunately many people wait too long before taking action to resolve their situation.
One of the major difficulties with debt is that it is not only a financial problem. Debt has been proven to affect people’s mental health, damage their confidence and the sense of embarrassment people often feel over it, makes it difficult for them to discuss and therefore resolve the problem.
Assess the extent of your debt problem
If you are struggling to make your normal monthly payments every month or you may even be finding that you are overwhelmed by your debt and the pressures from lenders, then you need to take stock of the extent of your problem. You don’t have to do this on your own as a professional debt advisor will certainly help you to do this.
The important point here is to take action to stop the problem worsening and to find the most appropriate solution for you own particular financial and personal circumstances.
Don’t add to your debt
This is an important part of the process as it makes it really difficult to resolve a debt problem if you are still adding to your debt. Whilst it is important to take action, it is equally important not to rush into what might seem like a solution that may only make things worse in the long run. So for example if your debt problem is significant and you can’t see how you will be able to repay what you owe then taking out a debt consolidation loan is unlikely to fully resolve the problem and should be avoided.
This is the stage to consider getting independent professional debt advice to help you in your decision making. It is so important to be able to look at all the options available to you to ensure you select the very best solution to sort not only your current problems but also anything that may be looming on the horizon.
The best debt solution
The best debt solution depends on your own particular circumstances but it needs to be one that sorts the problem and ideally puts you on the road to a debt free future. There is no point in going half roads and there is no need to be apprehensive of the more formal solutions. They are there for a reason and with the help of a professional debt advisor you can use the law to your advantage.
Check out the disadvantages as well as the advantages
You will often see the benefits and advantages of a particular debt solution highlighted and even promoted and they have their place in your decision making process. However you must also be clear on all the downsides of each debt solution as they all have their own particular disadvantages.
So for example if you are a homeowner then you will probably prefer not to lose your home and must therefore check the implications of solutions such as a trust deed or bankruptcy to determine the potential impact on your home.
E-P Debt provides professional debt advice to people throughout Scotland. Advice is free and totally confidential so you can call at any time and speak to an experienced and understanding debt advisor who you will find to be on your side and committed to solving your problem.