How to get out of debt and stay out of debt
Debt management
The chances are if you are reading this, then you are in debt and probably feel out of control. This article is designed to help you with getting out of debt, so that you are put back in control over your finances.
The first step to get out of debt is to face the truth and admit that you have problems with debt, this may mean admitting that you are spending more than you earn which can be a frightening thing to admit. There is absolutely no point in ignoring your debt, if you do this then your situation will become worse without doubt. Debt problems do not go away of their own accord, you have to admit that you have debt, do not feel ashamed or embarrassed by your debt, you are not alone. It is a simple fact that your debt problems will not go away unless you make some positive steps to rectify your debt situation.
Ten positive steps you can take to gain control over your debt.
• Be honest and admit that you have a problem with debt.
• Don’t panic!! Try not to be afraid or feel guilty – this is especially difficult if any sort of threats are being made. Remember that support and advice is always available in this situation.
• Don’t be tempted by offers on TV or in the newspapers offering to lend you more money to clear your debts. Debt consolidation loans can work for some people but don’t consider such a loan without taking professional independent advice.
• Make a list of all the people who owe you money and all the debts that you have. Remember, be honest with yourself!!
• Draw up an honest statement of your financial position, give details of all the people you owe money to, how much your living expenses are and any other financial commitments that you may have, and the difference between money in and money out (if any) which is available to help clear your debt.
• Communicate by mail, email or phone with the organizations that you owe money to so that they are aware of your situation, people in debt are often surprised by a sympathetic response to genuine problems once they are actually aware of them. After all it is in their interest for you to be in control of your debt so that they will get their money back, even if they have to wait a little longer.
• Tell with your family and friends so that you can share your problems and work together towards a solution.
• Communicate with other agencies who can give you specialist advice, they do not charge for their services.
Consumer Credit Counselling Service (CCCS) helpline on 0800 138 1111 (freephone) is available Monday to Friday 8am to 8pm
Contact your local Citizens Advice (see telephone directory for details)
• Money problems often arise from or lead to family, health or emotional pressures and it is important that you seek professional help for these related problems too.
• KEEP GOING! Don’t despair, clearing your debts can be a long process but the end result will be worthwhile and will put you back in control of your financial situation.
We will now look in more detail at the PRACTICAL STEPS you can take to get out of debt.