How To Eliminate Debts » Struggling With Debt http://www.howtoeliminatedebts.co.uk A resource for anyone struggling with debts Tue, 01 Jun 2010 15:27:43 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Struggling With Debts? Do Not Panic! http://www.howtoeliminatedebts.co.uk/2009/11/struggling-with-debts-do-not-panic/ http://www.howtoeliminatedebts.co.uk/2009/11/struggling-with-debts-do-not-panic/#comments Wed, 11 Nov 2009 19:58:11 +0000 TC http://www.howtoeliminatedebts.co.uk/?p=45 During the last couple of years there has been a massive increase in the number of households that find themselves struggling with debts. This is the result of a number of factors:

  • The credit crunch and subsequent reduction in availability of credit
  • The recession which has meant many job losses and reduction in household income
  • Rising household costs thanks to rising fuel and food costs

There is always a bit of stigma attached to suffering with financial difficulties, I have certainly felt that way and I am by no means an overly emotional person, so I can well imagine it would severly dent the pride of some people.

However, I would say to anyone out there that is feeling that way, don’t panic! My good friend up in London who works in wholesale banking was most sympathetic when I told him of my plight. He can quite understand as he has seen many of the banks clients default on their loans with them. This has simply been the affect of the credit crunch and subsequent recession and it is nothing to feel ashamed about.

So if you are struggling with debt, the first bit of advice is do not panic. The second bit of advice is to ask yourself a few questions. Would you really care if you did go bankrupt or went through an IVA? These are the quickets solutions to get you out of debt and stop anymore creditor hassle.

They are most definitely the course of action that will have the worst repercussion on your credit file however, so any decision must not be taken lightly.

If you don’t wish to pursue either bankruptcy or an IVA, then you must consider a debt management plan. I would recommend you use this website, help me get ouf of debt to see how little you could pay under a debt management plan.

Once you get yourself into a debt management plan, it would be worthwhile scraping some capital together which you can later use as a full and final settlement with your creditors. If you have read my earlier article about settling debts for 28.5% of the balance remaining you will see that it is both possible to settle debts for much less than you owe, though it is a process that takes time and requires nerves of steel, along with a fair amount of negotiation skills to boot!

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