Struggling with debt? Understand and consider your options

If you are struggling with debts, it’s important that you don’t panic – or simply ignore the problems you are faced with. There is help available for all kinds of debt problems, even if you don’t think you’ll be able to repay your debts in full.

If I am struggling with debt – what should I do?
The first thing you should do is contact your creditors and explain your situation. In general, the earlier you can do this, the more options you should have – plus, it will show that you are willing to resolve the problem and means that your debt has less time to gather interest and get any bigger.

Your creditors – if they think it will help you repay your debts – may accept lower payments or even let you take a ‘payment holiday’ (i.e. no payments at all) for a short while, giving you enough time to get your feet back on the ground.

However, it is important that you find out about any potential consequences (such as higher overall costs, or an extension of the repayment period) before you agree to any changes to the way you’re repaying your debts.

Even if your problems are serious and you don’t think you’ll ever be able to repay your debts, you may still find that there’s a debt solution that can help you address your debt problems – a professional debt adviser should be able to help you with this.

Debt solutions – how can a professional debt adviser help?
A professional debt adviser can help you identify which debt solution may be most appropriate for you, based on your individual circumstances.

There are several debt solutions which may be appropriate for you, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements), each of which is specifically designed to help people with different kinds of debts become debt free.

Making your mind up about which debt solution is the right one for you can be a difficult task, but a professional debt adviser can talk you through all of them in detail and help you establish which one (if any) is right for you, based on your financial situation.

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