Dear Reader,
This is the first entry in my series of blogs regarding the issue of debt.
In today's consumer society where access to consumer loans, credit cards and worse still 'fast' payday loans is still all too easy, some of us are forever forcing ourselves to find extra finance to find a way to cover existing instalments on loans by taking out even more of them. If this is the case then we sure are caught in the DEBT TRAP. Perhaps this is not the case as far as you are concerned, but remember that if we are not careful and prudent about the way we manage
household finances, this is where we could end up.
Of course, It is not my intention to make people who are already encountering financial problems to make their lives even more miserable. I know that people who are in such a situation sometimes feel helpless, depressed, useless and worse still, do not know where or who to turn to for help. Doing nothing and attempting to obtain even more credit will only make the problem worse.
There are a few ways out if your debts continue to keep mounting up:
- you can ask your bank, building society or loan institution to restructurize your instalments. Do this before things go to far and you run up with default after default.
- if possible, see if you can cover all those smaller instalments with one, larger, cheaper one (practically all banks offer this possibility)
- If the above are impossible, perhaps the best option would be to sell your possessions or declare
yourself bankrupt and then go back to 'square one'. This is the lesser of the two evils, unless
you want the bank to repossess your home!
- ask members of your family to help out. Do this with caution. Only ask those who you feel
will understand your predicament. However, make sure you are able to pay them back.
If you are feeling desperate, there are a number of groups you can turn to for help:
Citizens Advice Bureau
http://www.adviceguide.org.uk/england/debt_e/debt_help_with_debt_e.htm
National Debtline
http://www.adviceguide.org.uk/england/debt_e/debt_help_with_debt_e.htm
Step Change Debt Charity
http://www.adviceguide.org.uk/england/debt_e/debt_help_with_debt_e.htm
By the way, whilst trying to eliminate your debt, you can also think of ways of increasing your
income and reducing your expenditure.
These include:
- Taking up another job to earn extra money in order to increase revenue
- stop smoking today. Drink less. Don't try to buy what you can't afford.
- skip that holiday abroad. Stay in the garden;) Take day trips instead.
There's always the National Lottery. Who knows, but play with caution, say two times a week.
Don't gamble of course.
I hope some of the info. here can help you.
JH
