10 Reasons To Solve Debt Problems

Sometimes the hardest decision to make is the right option. It’s taking the first step that’s the hardest part. You can be aware of a problem, even know what to do to resolve the problem, but be unable to take the necessary steps.

Maria Robinson once said

Nobody can go back and start a new beginning, but anyone can start today and make a new ending.

It’s with this sentiment that I’ve compiled my top 10 reasons to get active and solve those debt or money problems. It’s not the end of the world being in debt – there is a route to a happier future, you just have to take it.

I’ve been there when trying to make the decision to seek debt help and it isn’t easy. Panic and fear sweep over and it’s easier to just pretend it isn’t happening; that the debt doesn’t exist. But it does.

Top 10 Reasons to Resolve Money Worries

10-debt-reasonsReason 1: The debt isn’t going anywhere. There’s no point trying to fool ourselves. We can pretend we don’t see the unopened envelopes. We can ignore the constant telephone calls and we can only peak at our bank accounts with one eye open, however it won’t make a difference. If the debt exists the reality is that it’s not going anyway without action from you.

Reason 2: Your life is on hold. I know I felt that being in debt put my life on hold. I couldn’t enjoy a meal without thinking about the bill and the fact I couldn’t afford to repay the debt. It’s debilitating, so by taking action you’e regaining control of your life.

Reason 3: Credit rating.  If debts are not being paid on time then it’s impacting on your credit rating. This impact will leave a default which will last for 6 years. Every time this happens your credit score declines. Debt solutions affect your credit score, but the sooner you resolve the debts, the quicker your credit score can improve again.

Reason 4: Friends and family. Debt problems don’t just affect you, they affect your family and friends too. The closest people in your life will notice the stress you are under and they will be worried. It’s important you take action for yourself, but for your nearest and dearest too.

Reason 5: Mental health. In a recent study, it was found that 80% of people dealing with serious debt problems also had mental health problems, which were associated to the stress of the debts. By waiting to resolve your debt problem you’re impacting on your health.

Reason 6: Creditor power. Your creditors have powers too and they can use these powers to force you into a corner. For example, if you have a credit card with £20,000 unsecured debt and also have equity in your house, the creditors can go to court and secure their unsecured debt against your property. They can then force the sale of your home. If you leave it too late then you may not have control of your assets.

Reason 7: Debt solution. Some debt solutions require a certain amount of money to be repaid to the creditors. The longer you leave the debts without being resolved, the more likely the only debt solution you can apply for is your bankruptcy. There are lots of debt solutions, but if you leave it too late you may no longer be applicable for them.

Reason 8: The cost of debt. The longer a debt problem is left to fester the greater the interest and charges being accrued will become. As soon as you realise you have money problems you must seek debt help. This will keep your total amount of debt to a minimum which is ideal for both you and the people you owe money to.

Reason 9: Future. Your ability to get a great mortgage deal or take out credit in the future, for items like a washing machine or car, depend on your current credit liabilities. If  you don’t resolve outstanding debts then your financial future is uncertain. This can stop you achieving your true potential!

Reason 10: Life’s too short. If we’re lucky we get 80 years on this lovely planet. I certainly plan on spending the vast majority of it happy and with people I care about. I’m definitely not going to dodge phone calls from debt collectors and bailiffs!

The First Debt Step…

For the people I speak to on a regular basis, the above ten reasons are easily identified. They know there is a problem, but actually doing something about it is the hardest part. Break it down into baby steps. The first step has already been accomplished – you know a problem exists. The second part is picking up the phone to a debt charity and asking for guidance. Telephone is often the best because you don’t have to look anyone in the eye; it’s just a conversation.

You’re not the only person a debt advisor will speak to in a day. There will be plenty of other people needing help too. This means the debt advisor will be used to helping people with their financial concerns and most will be kind and considerate.

Help To Resolve Debt Problems

The first debt step is understanding the debt is a problem. The second is to ask for help. I always recommend speaking to two different charities; either Citizens Advice or Debt Support Trust.

Citizens Advice is a face to face service where you can get free debt help from a local agent.

Debt Support Trust is a debt advice charity which you can phone on 0800 085 0226 between 8am and 7pm Monday to Friday.

The advice and support from either of these charities is highly recommended and they will help you get the necessary debt advice so you can become debt free again!

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John The Bankruptcy Guy

As an ex-bankrupt, John has experienced the highs and lows of credit. It's with this knowledge that he writes Debt Advice Resource - to help others avoid, or navigate out of, the pitfalls of debt.

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