There is a strong human instinct to simply try and hide when serious and difficult problems are around. Unfortunately this approach may have worked for our ancestors when confronted with hungry predators of some sort, but it is absolutely the worst thing that you can do with a debt problem..



4-Step Plan to Get Help and Clear Your Debt.

1. Find a qualified source of free debt advice, either a charity like the Citizens' Advice Bureau or a respected debt management company, and make an appointment to see them .

2. Write down a list of all your debts with outstanding balances. This might be a bit scary, but unless you can see the size of the problem you won't be able to sort it out..

3. Prepare a detailed and realistic family budget showing all of your income and all of your essential outgoings on a monthly basis. This will show you the size of your debt problem and will help you and your debt advisor in assessing the most suitable form of debt solution. Your debt advisor will help you prepare a budget, but there is no harm in doing some of the work yourself..

4. Research the various different forms of debt solution (Informal Arrangements, Debt Management Plans, Individual Voluntary Arrangements, Full and Final Offers and Bankruptcy) so that you can have an informed discussion with your debt advisor when you meet with them..

Act Now and Start Your Journey to Becoming Debt Free.

If you do nothing you will be in the same situation in 6 months time, dreading the phone ringing or another batch of threatening letters. Just imagine how much better you will feel if you have started to take control of the situation and moved that bit of the way down the debt resolution path. All forms of debt relief take some time to complete (a typical IVA can last 5 years), and sometimes that can put people off starting the process, but the longer you delay the more you are delaying the arrival of your debt free life..

I was in the middle of a debt crisis 4 years ago. Things only started to get better when I admitted to myself (and my family) that I had a problem and started to do something about it.