Debt Advice

Wipe our Debt
Wipe our Debt (Photo credit: Images_of_Money)

The following is a guest post from by Peter Dean.

Are you experiencing financial troubles or can see them in the horizon?

Often the hardest thing to do is admit that you have lost control of your finances and have serious debt problems. The majority of people I deal with have spent months or even years trying to rob Peter to pay Paul and only come to see us when their situation has become desperate. Why you may ask? Well, unfortunately, the stigma that still surrounds debt and financial difficulty persists, to the point that people will avoid speaking to anyone about it. The problem with this is very simple- debt that isn’t being paid off is always growing. Ignoring the problem will only make things worse.

So if you are having debt problems, face them head on.

How do I deal with my debt problems?

The first and most important thing to do is assess your income and expenditure, whether it be on a weekly, fortnightly or monthly basis. To really understand your problems you must look at the money you have coming in and the money you have going out and begin to try and gain control of your debt.

When assessing your income and expenditure you must work out how much of your disposable income you can afford to use to repay your debts in order to form a repayment plan. However you do not need to do this on your own- one of the most important things to do when beginning to manage your debt is to seek professional advice.

Debt advice and assistance from a qualified professionals is crucial, for both peace of mind and to ensure that you understand all the options open to you.

What are my options?

If your overall debt is low, and your disposable income is reasonable, then it may be possible to draw up a simple repayment plan which outlines how you intend to pay back your debts. This involves negotiating with all of your creditors to agree to the repayment plan, which can sometimes be a difficult process.

There a wide range of more formal options which have various advantages and disadvantages. One popular solution is Trust Deeds, which allow you to make regular affordable monthly payments to service your debt for 3-5 years. After this payment period is over, the remainder of your debt is written off. However, if you have valuable assets (house or car etc.) then these will usually have to be realized in order to pay off some of your debt.

This is just one debt solution, which like every debt solution has advantages and disadvantages. All of these formal debt solutions need to be administered by a licensed insolvency practitioner or money advisor.

For more Debt news and advice follow Peter on Twitter – @peterdean_debt

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1 thought on “Debt Advice

  1. Getting help is the key unfortunately so many people think that they are either ok or this is the way everyone lives. You first need to know that you have a problem in order to fix it. I agree that tracking is one of the best things to do. Having a budget and making sure you are putting the money where it is need and not wanted is best. Pay bills and debt before buying clothes and going on trips. Its hard to change all at once but every little bit helps.
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