Debt Help Section

Personal Debt Is Exploding Out Of Control - This Is What To Do

August 2005

UK personal debt is out of control shocking new research shows.

• Unemployment would lead to about 1/3rd of borrowers to default on personal loans and credit card balances within 3-4 months on losing their income
• Research also suggests that up to 40% would also struggle and possibly default on their mortgages
• The Citizens Advice Bureau (CAB) and other help agencies are getting swamped with calls regarding astronomical personal debt
• In fact the CAB is now recommending that up to 70% of all debtors it sees declare themselves bankrupt because of their massive debts and no real chance of paying them back
• The Department of Trade and Industry has also revealed that people declaring themselves bankrupt has hit record highs!

And folks, it's going to get a lot worse before it gets any better.

This Is The Plan

But the InvestorProfit.com website never likes to report the news without trying to give people some useful information. If you've got debt problems then there's a better than evens chance you're burying your head in the sand and not confronting the problem, this after all is the natural human reaction to a problem. But whereas some problems can sort themselves out naturally, debt is a real evil because its DNA is programmed to keeps growing.

Here are some points as to what you should do;

1. TALK! Yes, start talking to people about your problems especially your family and your debtor. The sooner the problems come out in the open the sooner you can fix them and also talking WILL start to get the massive monkey off your back
2. Go to the National Debt Line website and download all the material they have. Study it in relation to your problem, then when you've got some good background information call them, see next point
3. Call the National Debt Line (0808 808 4000) and get their advice, in fact get a relationship with them going because they can REALLY help
4. But be 101% honest, don't hold ANY information back because this will only mess things up in the long run for you
5. Contact your debtors NOW and tell them you've got problems and can some sort of deal be worked out (yes, as nasty as financial institutions are they are sympathetic to your problems and would much rather you start talking to them, before they get nasty with you
6. Work out a budget, get control of your finances (chances are you haven't)
7. Realise that it may take you many years to get out of your money-mess but this is double good news, a) you'll sort yourself out financially and b) you'll come out far stronger when it comes to managing money in the future. In fact some people say getting in debt was the best thing that ever happened to them because yes it messed their life up for 1-3 years, but then the next 20-30+ were great!
8. Realise that the more you're financially educated the more you'll be able to help yourself. For example the 'debt help' companies that advertise on daytime TV prey on the financially unsophisticated, but if you knew just a little bit about interest rates and mortgages etc then you'd know there are far better and cheaper options available (basically the MO of these companies is to help you out with your debts by taking on more expensive debt to be paid over a much longer time period!)
9. Finally, NEVER talk to any company that is in business to 'help' you sort out your debts. The information that they all provide for their fees is available for free from people like the NDL. These companies are sharks, plain and simple

Summary

Talk, talk, TALK! This is your starting point. Realise that there are plenty of govt debt help agencies out there that are there TO HELP YOU. So the sooner you start confronting your problems the sooner you'll start to see some real blue sky at the end of the tunnel.

Good luck and get TALKING.........

See Also

• National Debt Line
• National Debt Line - 0808 808 4000
• Citizens Advice Bureau