Don’t Ignore the Problem

Debt problems rarely fix themselves. In fact, the longer you wait, the worse the situation can become.
Therefore, it’s important to act as soon as possible.

First, contact your creditors immediately and explain your financial difficulties. Then, put your hardship situation in writing. Make sure you support it with a clear and detailed personal budget.

By outlining your income and expenses, you can show creditors how much you can realistically afford to pay each month. Additionally, contact everyone you owe money to. If you pay some creditors but ignore others, you may face serious problems again later.

If the first person you speak to is not helpful, don’t give up. Instead, ask to speak with a senior representative. Often, they have more authority to agree to a suitable payment plan.

Be Wary of Borrowing More Money

While it may seem like an easy solution, borrowing more money to repay debts can be risky.
Before doing so, always seek professional advice.

In particular, avoid taking out loans secured against your home. When unsecured debts are turned into a mortgage, you risk losing your home if payments are missed.

Moreover, consolidation loans usually mean borrowing more money over a longer period. As a result, you end up paying more interest. Over time, this can make your financial situation even worse.

Adopt a Wise Debt Strategy

To stay in control, you must deal with priority debts first. These include debts that could cause serious consequences, such as losing your home, being evicted, having utilities cut off, or facing legal action.

For this reason, ensure your mortgage or rent, secured loans, council tax, and utility bills are paid before making payments toward credit cards or other unsecured debts.

Otherwise, missing mortgage payments just to stay current on credit cards can quickly make your debt situation much worse.

Maximize Your Income

At the same time, look for ways to increase your income.
Check whether you are claiming all the benefits you are entitled to.

For example, could you qualify for tax credits? Are you unwell or living with a disability? If so, you may be eligible for additional income support. Likewise, if you’ve lost your job or are off work due to illness, review whether payment protection insurance applies.

If you are unsure, contact your credit provider for clarification. Also, make sure all adults in your household contribute fairly to household bills. In addition, switching to better deals on utilities and services can help you save money.

Get Support and Take Action

Finally, consider a debt management plan. These plans can reduce interest charges and lower your monthly credit card payments, helping you regain control faster.

Need Help?

Contact us today to explore your options and start managing your debt with confidence.

Everyone:
https://www.govbenefits.gov/

Senior specific:
https://www.benefitscheckup.org/

Contact Debthelper.com at 1-800-920-2262 for more debt help.
https://debthelper.com/

We enable anybody with an unsecured debt problem to manage and control it themselves. Simple. Act now!