If you need debt management help do you know what your alternatives are and who you can contact for assistance?
Firstly, you need to ask yourself whether your debt mountain really is insurmountable – or could you do something about it?
There are a number of formal proceedings you can begin if you find yourself too deep in debt. These include Debt Management Plans, IVAs (Individual Voluntary Arrangements) and bankruptcy. Each of these methods has its own good and bad points – and are excellent legal fall-back positions depending on the size and nature of your debts and your individual circumstances. Each can be a good option if there is no realistic way you can ever reduce your debt mountain.
But are things really that bad? A lot will depend on your own personality and outlook. If you’re the type of person who prefers to take a DIY approach to things rather than giving up and taking the legal options, then you’ll be surprised how, by taking a few steps to make basic day to day savings, you may be able to tip the scales back in your favour so that you’re gradually reducing your debt rather than adding to it each month.
A good idea is to list everything you spend down to the last penny then ask yourself (and perhaps a trusted but completely objective friend whose advice you respect to help in this process) where you could realistically make savings. If you’re paying high interest charges on your debt – then address this situation immediately with professional advice. You can usually get this reduced if you have good cause, but the steps you take and their formality will depend on your situation and a professional debt counsellor should be able to advise you on the best course of action here.
The most important thing is to take action, now. Face up to your situation and decide how you’re going to deal with it. Always get professional advice and use the advice you’re given to decide for yourself how you’re going to manage your debts.