Do you have debt problems?
If you answer ‘yes’ to one or more of these questions, you may need debt advice. Questions can apply equally to an individual or a household.
- Your income has been reduced, for whatever reason, and you have used borrowings to supplement it and maintain your lifestyle.
- You have more than one personal loan, or more than one credit card/store card, and have used all the credit available to you.
- You have significant borrowings (in addition to your mortgage), but no plan for how you will repay them.
- You have fallen behind with mortgage repayments or payments on a personal loan, and cannot see how to catch up with them again.
- You never open bank or credit-card statements, preferring not to know how bad the situation is.
- Your bank account is always overdrawn at the end of each month.
- You often exceed the limit on your overdraft and incur bank charges, but can see no alternative.
- Creditors have begun to ask you more insistently, or even harass you, for the repayment of their debts.
How do debt problems arise?
There are many reasons why people develop debt problems. Everyone with debt problems faces their own unique set of circumstances that have caused them to fall into financial difficulty.
While there may be some people who have developed debt problems as a result of a ‘spend, spend, spend’ approach to their personal finances, others may have found debt problems creeping up on them as the result of a minor imbalance between their income and their expenditure. This is often made worse by the use of credit cards or personal loans, which may be taken out as a temporary ‘stopgap’ to cover specific purchases but end up becoming an income supplement instead. Often, people in debt get into arrears with Council Tax payments or other official payments too, or they may borrow from friends and family.
For many people, a change in personal circumstances prompts a decline in financial circumstances too. The death of a partner, or separation from them, can be devastating on many levels. Redundancy or just a reduction in working hours can also have a major impact. And finally, there are many people who find it hard to deal with figures and the huge range of financial products available, making personal finance a challenge itself.
Solutions to debt problems
The good news is that there are several solutions to your debt problems.
- IVAs, or Individual Voluntary Arrangements, are arrangements with your creditors to repay debts within a certain timeframe.
- Debt Management Plans are arrangements with a third party who manage your debts for you.
- Trust Deeds are only available to people who live in Scotland. They are legal agreements with a licensed insolvency practitioner, who puts together a repayment proposal for your creditors.
- Bankruptcy means all your assets are taken into the control of a Trustee and used to pay your debts.
Get out of debt
The good news is that there are several solutions to your debt problems.
We are established experts in helping people just like you deal with debt problems and make the transition to a situation where the problem is in proportion and your debts are manageable.
If you feel ready to start dealing with your debt problems, one of our specialist debt advisors can help you decide the best way to proceed. Contact Debt Options, apply online or call us on 0800 234 3605 to discuss the options
For more information on choosing the right solution to your debt problems, visit Which Debt Solution?
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