If you are having difficulties with your debt or even think you are having problems with debt then the best thing you can do is to take action and take action now. The signs of debt problems are pretty obvious although they are often ignored in the early stages. So if you find yourself unable to pay all your bills each month or are incurring late payment charges, you can’t pay your credit cards off at the end of the month or your credit card balances are continually increasing even though you want them to come down, or you’ve been refused credit or are receiving lender demand letters in the post then the chances are you have a debt problem.
You are not alone
The important points to remember here is that you are not alone and many people experience some form of serious financial problem at some point in their lives. There can be many reasons for the debt problem which can be as simple as a change in personal circumstances or something that triggered the point where the debt spiral can kick in. This can include losing your job, illness, having to look after a family member, large and unexpected bills, taking on expensive credit options such as payday loans that you can never clear off, or allowing overspending to get out of hand.
The debt spiral
Debt can very quickly become a spiral and simply overwhelm you. The easy availability of credit means that people will often borrow on their credit cards or take out a bank loan or just buy something on hire purchase whenever they find themselves in a situation where their income is not meeting their expenses for whatever reason. This can often be the start of a problem that can easily accumulate without people even noticing. As the problem starts to build another very common course of action is to borrow further to try to solve your debt problem which in most cases unfortunately only exacerbates the problem.
The next stage is the one that really causes the problem to take hold and magnify. This is the period where people either wait and do nothing, are embarrassed or even fearful of talking to their partners, family or professional debt advisors, or they do actually try to resolve the situation but choose the wrong options and they sometimes just get overwhelmed by the problem.
Resolving the problem
The good news is that every financial difficulty or debt problem has a solution and you can start on the road to finding the best debt solution today. It’s all about taking action. The first thing you need to do is to find out the extent of the problem and this can be done quite simply by detailing what you owe and to who, along with the monthly payments due. You must count every debt, liability or borrowing in here such as loans, overdrafts, mortgage, credit cards, charge cards, store cards, hire purchase, payday loans etc. If you then take a note of your income along with your other normal living expenses then you very quickly have an overall picture of your financial circumstances.
The following stage really depends on the size and extent of the problem as this can range from just needing a bit of breathing space to resolve the problem through a variety of common debt solutions to the more formal and legal debt solutions that enable you to write off the debt you can’t afford. Taking professional debt advice is always a good idea to have an experienced advisor not only fully assess your problem but also to find the best debt solutions for you.