Debt used to be the exception; today it has proliferated into a mass phenomenon, with literally thousands of households in the UK struggling to meet their obligations. At the same time, the rise in debt-related problems resulting from this unfortunate development has thankfully shifted the focus from social stigmatisation towards providing hands-on debt advice and finding practical solutions. Today, there are hundreds of companies sharing the benefits of their expertise in the field of debt advice with their customers. If you’re looking for advice, you are therefore sure to find it – if you know where to go looking for it.
Of course, one could argue that taking hours to search for suitable debt advice is a waste of time in the first place. After all, the solution to the problem seems pretty straight-forward: Spend less, earn more and you are sure to reap the benefits. In a way, this simple strategy should indeed continually be on your mind if you’re facing massive debts and in fact, any serious debt advice session will start with finding way to boost your income and reduce your outgoings. And yet, this may prove to be either too little or too late or both: If the savings resulting from a more frugal approach to spending still won’t allow you to repay your monthly rates, you’re always in danger of defaulting on your credit – and thereby of having to file for bankruptcy.
Professional debt advice is foremost about informing you about the benefits and disadvantages of the various options at your disposal. Sadly, many people still seem to assume that there are only two possibilities, after all: Either pay up or you’re in trouble. In between these two extremes, however, there’s a whole world of discrete nuances and alternatives. Even if you should really not be able to pay back your debts, this doesn’t mean that you have to enter personal insolvency straight away. You can also apply for an IVA or a DRO – procedures aimed at those who may be able to repay part, but not all of their credit or who only have very low liabilities and very low disposable income.
Even more importantly, however, debt advice can result in a proposal to renegotiate your debt. Admittedly, the task of contacting your creditors personally may seem pretty intimidating. To a representative of a debt management company, however, this is part of their daily business and in some cases; they may even know some of your lenders in person. This allows them to approach them with both their and your best interests in mind. One should never forget that both sides have something to loose from a bankruptcy and with this in mind, various deals are possible, all offering a variety of benefits. If the renegotiation is successful, you may be able to pay less each month and satisfy your creditors after all.