Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk
It’s the reason we get out of bed each morning, face the daily commute, put in 9 hours for the man. Then go home. Eat. Sleep and repeat until you are either made unemployed, fired, retire, or drop dead.
If you were to ask anyone if they had three wishes they would most probably wish for:
There are those who will claim that money does not buy happiness. I tend to think that these people are just not spending it right. Or that money is the root of all evil, again they are not using it correctly.
Money and power have steered the course of human history since the day-old granddad chimpanzee needed to put a value on his bananas.
For those that have it in abundance life is good. Free from financial worries. Ability to chose to work or take the day and nip down the golf club. For the rest of us it’s another day with our shoulders to the wheel “heave yer scurvies!”
Having issues with debts piling up can lead to sleepless nights, being tired and generally miserable. As debts start to increase personal relationships will be put under strain as arguments start over the dwindling funds and mounting demands. Many relationships have failed due to money issues.
Dealing with Financial Stresses
When you find yourself in a situation that you feel is going to cause you financial problems, we suggest positive and direct action. The list below are some of the things that people can do when dealing with financial problems.
Confront the problem: It is easier to sometimes just ignore the problem and hope that it goes away. Unfortunately, creditors won’t forget, and they will come after the money regardless how deep you decide to bury your head in the sand. It is a good idea to take a deep breath open your bank statements, bills, demand letters and start facing faces.
Start to make a Budget: Once you have decided to take your financial situation under control it is time to start planning on how to tackle the problem.
Once the initial shock, annoyance and fear have subsided you can start to write down all of your expenses. Try to work out what you need rather than want. Start to cut out any unnecessary outgoings.
Plan what to pay: Plan on how much you can afford to pay. If you are paid £2000 per month clean, take £200 of that cash and put it into your sock draw. This is your money and will form the foundations of your savings. The other £1,800 will go towards daily expenses. Food shopping, travel etc, the most essential things only. No more nights out, not more takeaways.
Let’s say that your monthly outgoings total to £1,000, now you have £800 left over. This is the money you will use to pay off your debts.
Contact your creditors: Make a list of what you owe and contact each and every creditor, explain the situation to them and that you are prepared to pay a certain amount each month. They can either take it or leave it. Do not let them bully you. They will accept lower payments rather than nothing.
Stay Positive and stay focused: View this as a challenge for you. You are going to take control and you will maintain control. You will tell the creditors how it will work not the other way around. If the creditor can hear and see that you are serious about solving your debt problems, they will take you more seriously. No one wants to take anyone to court over an outstanding debt of £200.
Speak to the pros: There are lots of debt advice organisations out there who will help you understand your position and offer you advice, both practical and moral, don’t ignore these services they are free, for example https://www.nationaldebtline.org/
Here and now: Today is what matters, don’t worry about last week, and don’t worry about next week. Today is all that is important to you. Stay focused on working the problem. One step at a time.
Document Everything: Make sure you document everything, time of calls, the names of people you spoke to. Ask for confirmation e-mails. Do not get sloppy here. Since it does go to court you can show evidence of your efforts to pay the debts.
Look after your health
You can always earn money, your health once it is gone it is gone. Don’t let the bastards grind you down. For the sake of a few thousand pounds you will not end up in a loony bin or worse on a slab.
Avoid drinking as this will only impair your judgement. Go for long walks to clear your mind as you think about ways to repay the loans.
There are lots of things you can do on-line to earn a few extra quid per week and each pound earned is another 10% which goes into your saving pop and another 90% towards other expenses.
Don’t be stressed about the debt. Stress can kill and is your life really worth giving up for a few thousand pounds?
So, relax, start to take control and before too long you will be debt free.
The 6 Stages of Debt
When people are told that they are dying they go through various emotional stages which are:
The stages are:
The same stages can be applied to being in debt.
Denial: It is not real, there must be some mistake. This sort of thing happens to other people
Anger: The idiots, who are they to tell me that I owe them money, I’ll show them, I’ll take them to the cleaners.
Bargaining: Ok, please, just one last chance please, I promise I won’t do it again. Just give me a few more weeks
Depression: Woe is me. Why does it always happen to me? Life is not fair
Acceptance: It is what it is, nothing I can do to stop it so let’s just get on with it and make the best of a bad situation.
If you are aware of these emotional states, you will be better equipped to deal with the debt problem.
The first step is to acknowledge the problem and start to deal with it in a positive and direct manner.
Credit card companies are also regulated by The Financial Conduct Authority
Many people in the U.K struggle with debts and many do not know how to start to repay them speaking to a debt advisor is one of the best things you will do along with taking action yourself by speaking directly with your creditors.
You should always seek professional advice when handling debt problems. Cashute are not licensed debt advisers and any information contained in this article should not be taken as legal advice. It is your Responsibility to seek out correct legal advice