If you are struggling with debt it makes sense to come up with a plan. Avoiding the issue and digging your head into the proverbial sand is not the answer. It is better to properly assess the situation so that you can explore your options. Finding yourself unable to pay your bills is very stressful but there are ways you can take action.
Steps you can take if you are in financial trouble
One idea is to begin by creating a budget. By listing your living expenses and your debts, you will get a clearer picture of where your money is going.
Consider ways that you can reduce your expenses. Think if there are ways you can increase your income. Are your financial troubles only temporary, for example if you have just incurred a big medical bill? Are things simply getting worse month on month? Prioritise your expenses and debts into the ones that need to be paid first.
Most importantly do not avoid the problem. If you are falling behind on payments rather communicate with your creditors and explore if you can pay your debts over a longer period of time. Have a plan and make sure you can meet the commitments that you are proposing.
Don’t be tempted to borrow money. This will only exacerbate the situation. This is especially true if you borrow from micro-lenders with their notoriously high interest rates.
Consider debt counselling
If you have explored your options and cannot resolve your situation, contact One Debt today to discuss debt counselling. This is a process whereby agreement is reached with all of your creditors regarding how much you will repay every month. This is done on your behalf without you having to speak to your creditors. Each month you pay an agreed single amount to a Payment Distribution Agency. The Agency then distributes payments to your creditors on your behalf. This continues until such time as your debts are settled. You are then issued with a Clearance Certificate declaring you debt free. You can resolve your debt problems when you use the services of One Debt.