Are you experiencing debt problems? Perhaps you are scared every time the postman comes with letters demanding payments or you might have suffered the shame of doorstep collectors and bailiffs.
Causes of debt problems
Most debt problems come about not through over-spending as such but rather through an unexpected change of circumstances whether that be a job loss, a new baby or illness. There should not be a stigma around money troubles but unfortunately there is. This means people don’t talk about things with others so everyone thinks they are the only ones leading to feelings of isolation and despair.
Personal experiences of debt
I first got out of my depth as a student at a time when credit was too readily available in my opinion and to youngsters who had no financial education to guide them.
I got my issues sorted out with the help of Citizens Advice and later became a money advice officer with them first as a volunteer and then on a paid basis.
Usually, we would help individuals and families to work out how much was coming in and how much they were spending. We would look at methods for increasing income and curtailing unnecessary expenditure. Then we would make pro-rata offers to their creditors after sorting out priority debts such as housing costs and fuel bills.
The issue with some of these plans was that they could go on for many months or years. It can be difficult to keep going when you can’t see the light at the end of the tunnel.
Individual Voluntary Arrangements
There are other options available to tackle debt problems such as IVA’s where you can be debt free in 6 years and as much as 75% of what you owecan be written off. Of course, every way of dealing with debt has its advantages and disadvantages so you do need to consider things carefully including the pros and cons of IVA and whether they suit your individual circumstances.
This is a collaborative post with https://www.talkaboutdebt.co.uk