UK debt help
Who’s in control of your life - you or the company you owe money to?
“The rich rules over the poor, and the borrower is servant to the lender”. Proverbs 22v7
In a nutshell, it is in the interest of wealthy credit card and loan companies that as many of their clients remain in debt as possible. They rule over them. It’s wise to remember, that rulers get rich, not borrowers. Without debtors on their books these companies make no profits - not good for their shareholders, not good for their end of year bonuses.
Of course they do provide a service which can prove genuinely helpful when handled correctly but for millions the lure of easy credit promising an end to financial woes simply turns sour.
Add non stop advertising, peer pressure and easy credit to the mix and this potent cocktail can catch those unaware enough to swallow this very bitter sugar coated pill.
As consumers we are simply being fed “enough rope to hang ourselves on” but it’s our job not to fall victim to these increasingly sophisticated tactics.
However, if you are already trapped and find yourself with mounting debt problems, don’t worry, help is available. Here are the first steps you should take today…
1. Face up fast - without acknowledging your debt problems you’ll never solve them. Procrastinating and avoiding the issue means by the time you do it could be too late. Don’t be like a silent drinker who’s never told a soul their hidden sorrow and ends up in hospital with a wrecked liver or worse.
Without facing up now, the dangerous effect of compounding interest on what you currently owe can rapidly escalate your debts to mindboggling proportions. In fact todays irritable ‘problem’ will seem a mole hill compared to the monster you’ll face in a couple of years time if you don’t take action today. Look it right in the eye, acknowledge where you are and…
2. Resolve to move forward and make a plan - The captain of a ship would never dream of navigating through difficult waters without his plans and maps, neither should you. When it comes to charting your way out of difficult debt situations this is doubly true.
Once you have a plan, as long as you stick to it, you’ll get through. Here are three things to remember…
a) Get low interest on what you owe now.
b) Pay off your high rate debts first.
c) Get professional help - without paying more for it.
3. When you have a plan, tell someone - the first people should be the creditors you owe money to and if at all possible (although it’s not always easy) your partner or spouse.
It’s good to put your partner in the picture even though it may be a little messy to begin with. This is because they are very likely to help you get out of your mess. Even more so if they can see you really are determined to change your previous behaviour which brought you to where you are now. Obviously, letting your creditors know early will also allow them to offer guidance to help you - don’t put this off even if it’s uncomfortable.
4. Discipline and diligence - True Grit. Nothing for it next but self denial, grit your teeth and cut up those credit cards - then start paying them off. It’s helpful to reward yourself at the end of each months successful repayments with a small treat (small though).
5. Review progress regularly - Keeping on top of every single penny you spend takes discipline. To help you do this, start a regular review process to allow you to keep tabs of everything you spend.
One reason even those with high salaries sink almost imperceptibly into debt, is because they simply don’t check on a consistent basis what is happening in their personal finances on a daily, weekly or monthly basis. Next thing they know, they are mired in debt - don’t let it happen to you, review often.
6. Basic steps to take - starting today.
- Write a budget - detail every outgoing and expense you have as well as your income sources.
- Reduce outgoings - you need the budget above but also by utilising better deals on things like gas, electricity, phones, even supermarket shopping you can save money. For example it’s now common for many low cost telephone providers to charge nothing at all for all UK calls. You must shop around - good deals arrive all the time.
- Don’t take the train or the car for your next long distance business trip - fly instead, low cost airlines often run very low ticket offers. Even use one of these low cost flights for your partner as reward for diligent debt busting.
- Use savings to pay off your debts now - you’re wasting money holding money in low interest savings. Use them to get rid of high interest debt. Once paid off, if you have any left over keep the rest for emergencies and building a nest egg.
- Reduce credit card interest - move debts from high rate cards to low rate ones, especially to those offering very low (3.9% pa etc) ‘life of balance’ balance transfer offers.
- Investigate Benefit Agencies - the stats would surprise you as to just how much money is lying unclaimed offered by the Government. Make sure you get yours - Tax Credit etc.
- Consider a remortgage - you can often reduce your current interest rates, release equity to pay off debts and start afresh. Just don’t start spending again afterwards.
- As you successfully pay off one loan or credit card debt - take what you were previously paying to it and apply it to your next one. Over time this results in a compounding ‘multiplier’ effect in your favour which means your debts eventually start getting paid off quicker and quicker.
- Get professional debt counselling - without paying for it. If things are rapidly spiralling out of control, do this first, and then follow their advice closely. Don’t get caught by commercial companies offering to sort out your debt problems for you - they charge and you end up paying them for what you can get free anyway.
The best impartial and FREE UK Agencies are listed for you below…
7. Help Resources - DON’T Pay For Help, You NEVER Have To. Use these friendly people instead…
http://www.cccs.co.uk - 0800 138 1111
http://www.nationaldebtline.co.uk - 0808 808 4000
http://www.citizensadvice.org.uk - surf to find your local CAB or use your local phone book to find one near to you.
Okay, there we have simple steps to get you free from debt. Using them means the day will finally arrive when you really are debt free, but you must act today. Don’t put it off.
It is also highly recommended that you speak with the Consumer Counselling Credit Service www.cccs.co.uk if you are seriously worried or even desperate about your own personal circumstances. They are a charity and will give you free, independent advice which will get you started. Their counsellors will even “walk through” beside you until the happy day when you are finally debt free. It’s important you get control of your life back - so why not start today.
Being in debt is not a crime - if you are facing serious debt issues, please get assitance as soon as you can. You’ll be glad you did.
Leave a Reply