I don’t think there are many people who take on debt with the intention of never repaying it. I’m sure it does actually happen but can’t believe for a second that it is a common occurrence. And anyway I’m pretty certain the banks and card companies have protective measures in place to ensure it is not widespread.
So when most people experience debt problems there is likely to be a real life reason for it. It may be a drop in income as can happen when someone loses their job, or goes through a long term illness. It can even be an unexpected expense that can tip the balance of financial management the wrong way. Or it can sneak up on people; you get a bit more in debt each month, miss a few payments, incur expensive penalties and charges and then you find yourself in over your head. And there are people who really just find it difficult to manage their finances or are even reckless with the debt they take on.
I speak from personal experience having incurred a substantial debt problem, which happened to be through the loss of my partner’s job, and we found ourselves very quickly in financial difficulty and not coping well with it. The first thing we did was to take on more debt to try to solve our immediate debt problem. Now how stupid is that. We can look back now and see where we went wrong, on numerous occasions, but our pattern of behaviour was typical of how many people react to the problem.
Logic and rationale go out of the window as emotions kick in. Worry, anxiety, embarrassment, deceit and fear make it difficult to think straight and even contemplate a solution.
A search on the internet took me to a website that rang a big bell in my head. It made sense of it all and provided me with the information I needed. But the one thing it certainly did was to make me realise I needed help, professional help, professional debt help. And that is exactly what I did. I took action and lifted the phone and asked for help with my problem. All of a sudden I didn’t feel quite so alone. The advisor was friendly, helpful and most importantly knew exactly what to do.
She listened to my problem, took me through a detailed assessment of my financial circumstances and recommended that I entered into a formal debt solution that I had never heard of before called a Scottish Protected Trust Deed. One thing to remember about debt solutions is that they have disadvantages as well as advantages and these were explained to me in detail.
The right decision
Once I had been given the Trust Deed advice it was relatively easy to make the decision that this was the right debt solution for me. An affordable monthly payment was agreed with my creditors and this lasted for three years and at the end of this period the rest of my debt was written off. It wasn’t easy going through those three years but it was a huge weight off my shoulders. The details of the Trust Deed stayed on my credit record for six years and whilst it was difficult to get finance it wasn’t impossible.
The solution worked for me, it was a lesson learned, and my Trust Deed gave me a route out of debt and the opportunity for a fresh start.