5 Simple Steps For Dealing With Debt
Being in serious debt is one of the most stressful experiences an individual can face.
The constant phone calls and letters – or even home visits – from creditors can not only affect your own mentality but they can affect the rest of your family life too.
If this situation sounds familiar to you, then what exactly can you do about it and what important steps do you need to take to deal with your debts and get your life back in order?
Step 1 – Be honest with yourself
The first step to dealing with your debt can be as simple as admitting to yourself how bad the situation really is.
While it can be extremely tempting to just bury your head in the sand, I think we all know that this isn’t going to resolve the situation.
So, the first step is to be honest with yourself and admit to yourself how bad the problem really is.
Step 2 – Get organised
Once you’ve admitted to yourself the severity of your situation, it’s then a good idea to start getting your finances organised again.
This could include listing all of the debts you currently have on a spreadsheet and then placing them into an order of priority when it comes to repayment.
Highest up on your list will usually be what are called priority debts, for example rent or mortgage debts and government related debts, as these will be the ones that will be likely to cause you the most trouble.
Once these are taken care of, you’ll then want to attack the debts that you are furthest behind on or that you are paying the most interest on, as this could help you to get your situation resolved much quicker.
Step 3 – Contact your creditors
The next step is to contact your creditors and be completely honest with them regarding your situation.
Tell them that you are aware that you need to repay your debts and that you are willing to do so, but that it may take some time.
You could outline to them your specific plans to repay and it may be helpful to make a token payment – even if it’s just £1 – to show your creditor and any potential court that may get involved that you are willing to repay.
Step 4 – Stick to your plan
Once you have a realistic plan in place, you’ll then need to do your utmost to stick to it. This may mean that you need to make a few sacrifices, but it will surely be worth it when you are debt free in the future!
Step 5 – Seek the right advice if needed
If you’ve already tried the previous 4 steps but you are still struggling to repay, then it may be wise to seek some professional Debt Help & Advice.
While paying off your debts in full will be the ideal option for most people, it’s also true to say that it simply may not be possible for others. If this is the case for you, then be sure to get the right advice.
So, there we have it, our 5 simple steps for dealing with debt. We hope that they help you along on your journey to becoming debt free!
Latest posts by Paul (see all)
- Could You – Should You – Get Your Van Insurance From A Supermarket? - June 18, 2018
- 3 Ways In Which Technology Can Save Your Business Money - June 15, 2018
- Revolut To Introduce Commission-Free Stock Trading To UK - June 13, 2018
- Next Steps When You’re Made Redundant - June 6, 2018