The Early Signs of Debt
In Credit Repair of CreditGuru (April 30, 2009 1:05 am)
Leaving utility bills to fester in the backs of drawers is not a smart money management method. There has been recent data suggesting that the credit crunch is making people avoid their debt problems.
32% of people surveyed say they’d consider defaulting on packages like TV while 16% say they’d side-step their mobile phone bills if they felt cash-strapped. 16% of people are also more likely to shun credit card payments.
Often times, you will be required to pay extra fees to set up your mobile or cable if you go too long without paying so be aware of this.
Even if you think that tucking a few unpaid bills away in a drawer won’t do any harm, missing seemingly small like a utility bill can lead to bigger problems.
If you put off these payments it could mean that you are going to be more likely to do it in the future so beware of the problem before it becomes serious. Dealing with simple bills and fees first shows that you are able to fully deal with your financial matters.
The basic elements of proper financial planning
Record everything that goes out of bank accounts each month, including bills, direct debits, mortgage payments, rent and overdraft charges. If at anytime you are spending more than you earn then you are developing a debt problem. If the debt isn’t too large and is easily managed, begin by cutting down on luxuries and non-essential purchases.
Serious solutions for debt problems
There are all kinds of debt solutions and they all have pros and cons. You will have to figure out which one is going to work the best for your particular situation. A few options include debt consolidation loans, debt management, Full & Final Settlements, bankruptcy, IVAs, IVA Mortgages, Protected Trust Deeds, Administration Orders, or even a Debt Relief Order.
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