If you, like 55 – 61% of British people, are living with a high amount of debt, you probably have many concerns in your daily life. Research shows that people living with significant debt experience a range of health problems, relationship stress, as well as many other forms of stress and conflict. This does not even cover the added burden of having to take out further debt and advances to pay for day-to-day expenses. If you are swimming in debt, then you are likely also spending every spare cent just paying off the interest on your debt, without seeing any budget in the balance. This is disheartening and demotivating, and probably also contributing to your overall stress. Not to mention the regular, (what can sometimes feel like) harassment from debt collectors and creditors. If this scenario sounds familiar, and you do not feel ashamed as it is a very common picture, as seen in the above statistic, then you are probably wondering about what options are available to you. Well, look no further as we are going to discuss some ways you can manage this.
Debt Counselors
One of the ways you can address your debt crisis is to make contact with a local debt relief service. These companies usually have a wide array of services, ranging from counseling and assistance with budgeting to negotiating with your creditors or debt collectors, to devising a payment plan, and helping to improve your credit score. These are just a few of the many answers debt relief agencies provide, as you can see on the long list of services on this site. Debt counselors will help you to look at your spending habits, money management, as well as the reasons for being in such extreme debt. Say for instance you have certain monthly bills, including credit card payments coming every month. With your salary, you are getting by, however, it is tight. Then due to the global pandemic, your industry is impacted and your income is halved. Or even worse, you lose your income. Now the debt really starts piling up. A debt counselor will help you to look at your spending and help you to look for ways to save. Possibly the lifestyle you are accustomed to needs to be adjusted to save costs. They can often help you find money that you are spending unnecessarily and could be using more wisely.
Debt Settlement
Settling debt is always a better solution than defaulting and not paying at all. However, many people feel hesitant to seek help through debt settlement as they are worried about how this will impact their credit score. While settlement often results in a drop in your credit score, sometimes around 50%, it is still a better solution than bankruptcy. Which is a lot worse for your credit score. It is also easier to start rebuilding your score after a debt settlement than it is after filing for bankruptcy. Your debt relief service will make contact with your creditors or debt collectors on your behalf to try and negotiate reduced interest rates and installment amounts, saving you stress, time, and money. In some instances, if you meet certain criteria, these professionals can even help you to write off a significant amount of debt. Can you imagine that kind of a weight off your shoulders? Debt relief experts will also be able to give you professional and experienced advice on the different debt settlement strategies. Be sure to consider options for dealing with a Debt Collection Agency as well.
What If I Don’t Do Anything?
Debt does not just disappear if you ignore it for long enough. There are serious repercussions if you hide from your outstanding debt payments and communication from collectors. While you might not serve jail time for not paying your credit card, failing to make other payments like taxes or child maintenance is punishable by jail. Debt collectors can choose to pursue your case in a legal civil suit and this can result in many difficulties for you. Some of these outcomes can include having your assets repossessed, further financial and legal penalties, as well as a record that can follow you for life.
There is no denying that having a large amount of debt is a reality for many people around the world. If this is you, and you are struggling with the overwhelming financial, psychological, and sometimes physical impact of stress relating to your debt, then you are probably desperate for a long-term and legitimate solution. Hopefully, this discussion will help you with some ideas in terms of pursuing a strategy to tackle your debt problems and come out as unscathed as possible. Living with a high level of financial, and other stress is never a good idea in the long run. It is time to act now, and save yourself a lot of anguish.