It’s thought that one in six adults are living with ‘problem debt’ – meaning than more than eight million people are struggling with their money.
Those numbers alone show that this is a common concern and yet it can be tough to talk about this issue. Many people feel like they just don’t know where to turn when they have no money at all and this feeling of powerlessness can cause stress and force the problem to escalate.
Yet there is help out there for people who struggle with their money. Our guide shows some of the ways you can reach out and get support when you need it…
Friends and family
It’s a big thing to admit that you are struggling, so it’s worth discussing this with a sympathetic ear. A trusted friend or family member will be able to give you reassurance and assistance you need so that you’re not alone. They might well have faced their own challenges in relation to money in the past and be able to offer you the wisdom they have picked up with years of experience.
Speak to your creditors
If you feel like you are struggling to pay one or more of your debts, then you should contact your creditors. Explain your circumstances and see if you can take a payment break or reduce your payments, depending on what you can afford. Be upfront with them from the beginning because otherwise they may issue a default against you or even apply for a county court judgement (CCJ).
Turn to trusted sources
If you’re struggling to deal with your debts yourself seek expert advice.
The Government’s own website is a useful starting point and gives you an accurate and concise summary of the options you have open to you when you are looking to get out of debt. It will also point you in the direction of trusted external sources that you could use.
For more information, the Government also set up the free and impartial Money Advice Service, which has lots of advice and guides that can help you to understand your situation. It also offers tools such as its online budget planner, which you can use to help you to understand your finances more fully.
Going forward, you have to be able to understand where all of your spending goes and cut your outgoings in a sensible way to help you avoid accruing any more debt and these tools can form part of an audit of your finances to help you with this. Every penny you save can go towards reducing those debts, so use these tools wisely.
If things are a little more serious, you might need to seek expert advice and start considering whether a debt solution could help you tackle your debts. In that instance you could speak to PayPlan – another free company that can come to your aid. PayPlan can offer advice on a wide range of debt solutions including Debt Management Plans (DMPs) and Individual Voluntary Arrangements (IVAs).
There are many ways you can get help, formally and informally, when you are in debt. By talking to those closest to you, the people you owe money to, and some trusted sources you will be in the best place to plot a course to a healthier financial situation.