The years of easy credit and rock-bottom interest rates have taken their toll on the best of us. We all know the golden rules – budget wisely, don’t borrow more than you can afford to repay and all the rest of it. Yet it is only too easy to find ourselves staring down both barrels of a debt crisis that seems almost overwhelming in its enormity, where even making the minimum payment is difficult and the problem just escalates from one month to the next.
Inertia only makes the problem worse, but this is one of those situations in which burying your head in the sand can be hard to resist. Discussing money is something many of us shy away from. Discussing money problems, even more so. And when you have the added feeling that these problems are of your own making, then the fact that people tend to prevaricate and hope for a miracle is easy to understand.
Debt management needs expertise
It is also, however, completely illogical. If your car breaks down or your home electrics develop a fault, you consult an expert. Even if the problem is through some foolish act on your own part – you took a long drive and didn’t check the oil, or you tried to install a home tanning bed and killed the power supply for the entire street, you still ring an expert and get them to fix it. After all, they are happy to do a job, and if an amateur has got something wrong, well, it’s just business to them.
What are the options?
When we are watching the debts pile up like a rabbit in the headlights, it can seem that there are very few options open to us. Most of us go one of two ways – pay the bill if we can, or ignore it and optimistically hope that it will magically go away if we can’t. There has to be a better way.
The thing about the professionals is that they can formulate a middle ground – a way of keeping the creditors satisfied, if not entirely happy, while ensuring that your repayments are affordable. And best of all, the debt will stop getting bigger and will actually start to disappear. One of the most popular ways of doing this is with an Individual Voluntary Arrangement (IVA). You can check out this website to find out more, but in short, your debts are consolidated into one manageable lump, you make a single agreed payment to the debt management company and they arrange how it is distributed. Typically, the creditors will agree to write off a proportion of the debt, taking the approach that getting something is better than nothing.
That’s just on example of the options available for managing debt. The most important piece of advice is to get that expert assistance – and to get it now.