Dealing with debt is not easy. Most of us try to ignore our debts and hope that they disappear; this will only make things worse. How many times have you ignored statements from the bank or creditors? Left them in a drawer somewhere hoping that they would take care of themselves? This only makes things worse.
It’s not uncommon to feel like there’s nothing you can do, but pretending that there isn’t a problem wont help anything. If you ignore your debts, they will just continue to grow and add up, and when you do finally decide that its time to sort out your debts, they could have spiralled out of control without you even realising.
With the current state that the economy is in today, getting your debts sorted out and your finances back on track should be your priority for the year, whether its personal or business related.
Sorting Out Your Debts
When you get around to paying off your debts, you will need to have all the information that is available to you to calculate how much you owe. Gathering up all the statements from the bank and creditors that you may or may not have been hiding would be the best way to do this. It may be overwhelming at first, but this is the best way to start paying of your debts.
From this information you can find out which companies you own money to, how much you owe each of these companies, and most importantly what priority debts you have. Priority debts are the debts which you absolutely must deal with first.
These can be debts such as mortgages which can be very serious. If you don’t pay these back it could lead to a repossession situation and leave you homeless. Situation’s such as these show just how important it is that you pay off your priority debts above all else to give you some breathing room.
If you still feel under a lot of pressure even after paying off your priority debts, contact your remaining creditors. Explain your situation to them; it may lead to reduced payments until you get back on your feet.
You are not alone when it comes to being in debt. Money Charity reports that the average amount of debt per household in the UK during September reached £54,178. This shows just how bad the levels of debt have become across Northern Ireland and the rest of the UK.
Don’t Wait, Get Help.
Even after you have gathered up all of your statements and bills, it can still be extremely overwhelming for some people to cope with the pressure of dealing with debts. Its times like these where you should consider getting in touch with a third party to help you cope with your financial problems.
At MMC we provide such services to our clients with our tailored Debt Help Northern Ireland package. We have extensive expertise in dealing with debt management. We can have a look at your finances for you, personal or business, and help you to get yourself out of the red zone. We can also create a Business Turnaround plan for you if your business requires it. This will guide you step by step on how to get your business back on track again.
Don’t leave things to the last minute. Acting quickly to resolve any financial issues is the best way to get you back to recovery. There is always a solution. The longer that you leave your debts unpaid, the worse it will become.
Other Tips For Handling Debt
Below are just a few examples of some quick Debt Management tips to stop your debts from getting any bigger:
- Don’t increase the level of your overdraft.
- Don’t increase the spending on your credit cards
- Don’t take out any more loans
- Shop around for the best deals
- Set a budget
- Cut back on luxuries