Getting into debt can be so easy, getting out of it is often the opposite. You can accumulate debt within seconds, but without the funds to clear it, the paying off process can be a long and painful process.
It can be a frustrating experience, a time of stress, tension and uncertainty. Once you’re in debt, it’s likely to keep rising, interest will build and you will receive bill after bill after bill.
As the bills mount up, before you know it you’ve missed a payment, you can’t afford to pay, and the costs keep climbing.
Of course, you need to keep living, but you will probably find it increasingly difficult to manage your cash flow. You might be tempted to take out another credit card, or a short-term loan, but this kind of short-term solution will only make the problem worse.
If you’re wanting to being the journey to a debt-free life, a good starting point is to speak with an independent financial adviser. You need a compassionate person who can provide you with a clear vision and approach. Someone who is passionate about guiding you to a debt-free future. They can offer alternatives to bankruptcy, credit counselling, and debt consolidation.
The options available to you might include negotiated debt settlement programs – it’s advisable to seek support from trained debt management specialists to help negotiate you out of your hardship at the lowest possible cost.
Debt management options
- Bankruptcy: A legal process that means you have no possible way of clearing your debt. Whilst this may sound desirable, it will affect your credit history for life. It will make it hard for you to get a mortgage, and you may lose some of your personal possessions. Bankruptcy is usually a last resort, an admission of defeat.
- Credit Counselling: This is about educating you, effectively taking you back to the classroom to learn about the basics. It can be a time-consuming and degrading process.
- Debt Consolidation: This strategy is about taking out a new loan to pay off your multiple outstanding debts. This brings the repayments under one new loan, however, you may end up paying more interest over time.
- Debt settlement: A negotiated debt settlement is about the negotiation between the customer and the creditor. This can mean reducing your debt and making it more manageable to pay off. Whilst you may not be the best negotiator, there are people out there who are.