Getting Help with Debts

Debt is one of the prevailing issues of our time. Once regarded almost universally as a sin (usury), money lending has become one of the prime movers of our global economy. Everyone from individuals all the way up to entire countries are saddled with debt. Moreover, previously unheard of levels of debt have become acceptable. For individuals, it is next to impossible to get on the property ladder without taking out some kind of mortgage, and this ingrains the borrowing behaviour in first-time buyers. However, a casual attitude to debt can be ingrained even earlier as loans and other finance are taken out to purchase cars; and millions of students every year end up with tens of thousands of pounds in student loans, overdrafts and credit card balances.

The result of necessary debt during ones young adulthood in most cases results in a casual attitude to debt for life, and one that is exacerbated by a resoundingly laissez-faire attitude to money lending and debt throughout Anglo-American economies, with staggeringly high levels of debt being serviced at the multi-national and governmental levels.

It is only inevitable that a significant proportion of individuals and businesses end up defaulting on their debts, whether they take the form of repayment loans, mortgages, store credit, credit cards, overdrafts or other credit packages. In a glowing testament to humanity in the face of cold hard cash, there are a multitude of schemes, organisations and companies who will help those facing insurmountable debt.

This help can take the form of advice, consolidation loans, bankruptcy and in extreme cases, getting debts written off. Which option is right depends entirely on the individual or business at hand, and generally speaking, an arrangement where debts are eventually paid is always preferable to one in which debts are written off entirely, as a written off debt will adversely affect the creditor, leading to higher borrowing costs for those that can afford to pay.

Realising that you’re facing unmanageable levels of debt is a terrible shock, and one that can lead to some devastating emotions. The first thing is just to admit the situation and assess the level of debt being faced. The second is to seek advice and admit your situation to your creditors. The sooner you fess up, the more lenient and understanding they are likely to be. The absolutely worst thing that can be done is to ignore it and hope it will go away. If your outgoings are higher than your income then the situation will only get worse with time.