Most debtors have the habit of ‘pushing the situation’ when they are in huge debt. They shy away from asking for guidance and try to solve the issue on their own, which pretty much squeezes the sandwiched situation more badly. In some cases, people are unaware of the different options available through charity organizations or the government to get out of the debt trap.
The story of debt could have begun with different openings, it could have been a genuine situation where the debtor had insufficient funds to pay the loan back or it could have been due to a casual need like a house party. Whatever the reason be, it is important to find a quick solution to the accumulating debt than wait for the “debt sentence.”
There are two ways to address a debt situation:
1. Self-help or Smart help
2. External help or the Expert help
With Self-help or Smart help, one gets to control the ‘spending means’ and regulate the money out flow. Example: If you earn £500 per month and your debt requires you to pay £250 per month, then you regulate your miscellaneous expenses, cut down luxury shopping and eat outs, etc. and start making a small saving of £50-£60 every month called ‘Eye Opener Savings’. This savings money can later be used as your emergency fund instead of going for payday loans or short term loans that usually come with high interest rates though they are good emergency finance options.
With External help or “Expert” help, you get to seek private or government ‘charity groups’ that function mainly to help people lost in debt. Two of the popular organizations who work towards this cause are Citizens Advice Bureau and Consumer Credit Counselling Service. These organisations charge no fee for this service and give the best of ideas to help out debtors by studying their situation and give case to case advice to debtors to quickly and smoothly resolve their debt issue.
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