Debt Management

Find a counsellor dealing with Debt Management >>

Financial problems often cause stress, anxiety and depression, and when these problems become severe it's natural for the individual to feel that debt is taking over their life. Unmanageable debt can lead to breakdown of relationships and affect all areas of an individuals life. Repaying debts may be difficult for many reasons, generally though a change in personal circumstances such as divorce, job loss or a new baby are often found as the underlying cause. Individuals may borrow more money to be able to pay creditors or bills, however this is not usually the best thing to do. The most common thing to do is to try and ignore the problem, but this will not make it dissapear. Many people don't know where to turn for help.

There are many people in the UK in the same position and Britain has never before been as deeply in debt. Consumers now owe more than £1 trillion on cards, mortgages and loans. Six million families are estimated to be struggling to keep up with credit commitments, however with credit cards offering 0% for up to a year, it is easy to see how many people find themselves in trouble. Research has shown that the UK is the only European country with more credit cards than people. The number of consumer debt problems dealt with by Citizens Advice Bureaux is estimated to have risen by almost three quarters over the last seven years, and it is becoming increasingly recognised that there is an under-capacity in debt advice provision.

According to research, a household is likely to be over-indebted if 25% of their annual income is spent on repaying creditors, 50% of their annual income is spent on repaying credit and mortgages or they owe money to four or more companies. It is best to face up to debt problems as soon as possible; these few initial steps can help begin with the management of debt:

Decide on a budget and prioritise debts

Contact creditors and let them know the situation

Offer to pay off the debt at an affordable amount, even if this is small

Resist unnecessary spending

Cut up store cards and credit cards

Try to find ways to earn a little extra money, perhaps work more hours if possible

However, there are many organisations that can help free the burden of debts. Free advice services are available (Consumer Credit Counselling Service and National Debtline for example) and Citizens' Advice Bureaux also offer free advice. Counselling for Debt Management is also an effective method of releasing the stress of financial difficulties, and will help the individual understand how they can rebuild their life.

Further Help:

Consumer Credit Counselling Service

National Debtline

--
All content displayed on Counselling Directory is provided for general information only, and should not be treated as a substitute for the advice given by any professional.