26/09/2019

Debt help: it’s never too late to start

26/09/2019

Debt help: it’s never too late to start

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Dealing with your debts can be like trying to quit smoking; there’s many solutions to the problem and the hardest part is getting started.

It’s easy to feel like there’s nowhere to turn when you’re staring at a pile of bills, and the longer the situation goes on, it becomes even easier to feel like you’ve crossed a threshold for finding support.

There are many things that can cause this, such as age and overall debt level. They make people feel like paying it back is going to be a long journey that they don’t want to make due to the affects they feel it will have on their life.

But it’s never too late to start taking care of your finances. One thing we always champion is the knowledge that you don’t have to deal with your debts alone, and the great thing is, once you’ve begun, you’ve made the most important step.

Do your research

In today’s society, there’s always something new to learn. It’s been said that if you’re determined to learn, no one can stop you – so why not start changing your money habits now?

You may find that you’re able to get out of debt on your own by simply cutting back on things and curbing your spending when possible. There’s also the option of negotiating your payments with your lenders in order to make them more manageable for you.

The more research you do, the easier you will find this as you’ll be able to equip yourself with the right tools to make the first step.

DIY debt help

Understandably, you may find that you can manage to deal with your debts on your own.

One of the most common ways of doing this is to cut back on your spending and budget your way to financial freedom.

Make sure that you account for all your outgoings and try to cut costs where you can to free up some cash. One of the best ways to do this is to run price comparisons on things such as your gas or electricity to find a cheaper deal.

If you receive benefits, it’s also worth checking that you’re getting everything that you’re entitled to. You may be missing out on extra income that could help you to not only pay back your debts but also to survive while you do.

Weigh up your options

A one size fits all fix doesn’t exist when it comes to dealing with your debts, so it’s always best to explore all your options before making your decision.

There are several solutions available to give you debt relief, designed specifically to help those who are unlikely to be able to pay back their debts in a reasonable time. We’ve laid out a few below for you to get you started:

IVA

This is a legally binding agreement available to those living in England, Wales and Northern Ireland that can be arranged between you and the companies you owe money to. Lasting for five years, an IVA allows you to make just one monthly payment that’s affordable to you and all interest and charges are frozen on the debts included. No action can be taken against you for the duration of the agreement and any remaining balances are written off once you have completed it.

Trust Deed

Trust Deeds are a legally binding debt solution for those who live in Scotland. Much like an IVA, you’ll make just the one affordable monthly payment and all interest/charges are frozen. They generally last for four years and any remaining debt is again written off on completion.

Debt Management Plan (DMP)

DMPs are designed to help you pay back your debts at a rate that’s affordable to you. Unlike other debt solutions, this option is not legally binding, so isn’t guaranteed to be agreed upon when offered and it isn’t always the case that interest/charges are frozen. They can be put in place either by you or by a third party and can last for up to 10 years.

If you feel it’s too late to get some help with your debts, don’t. Contact us today on 0808 2085 195 for free and confidential advice to find a solution for your debts that’s suited to you, regardless of your situation.

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