What To Do When Your Debts Become Too Much

If you find that you are struggling to keep up with your debt repayments, you could be under a lot of stress. The constant letters through the door, the phone ringing off the hook and the curveballs that life could throw you with job losses or increased costs with your bills - it can all get too much. Burying your head in the sand is not going to be the way forward for you, especially as the only way to get through your debts is to pay them off and deal with the creditors that are chasing you.

The first thing to remember is that you are not alone, which means that you don’t have to handle the debts alone. You could speak to a bankruptcy lawyer to help you to alleviate your debt situation, and you can get the courage up to deal with the problem head on. Below, you’ll find some of the best ways to deal with your debt so that it stops being too hard to handle and starts being something you can manage and afford.

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Don’t Ignore It. You’re not going to do yourself any favours if you ignore your debts. Make a list of all the places that you owe money to, with the amounts of money that you own each one. Don’t despair over how you got there or how badly things have spiralled; that’s just a way to get yourself down. Instead, focus on what comes next and how you can take positive steps forward.

List Your Assets. Once you’ve listed all your debts, you need to list the ways that you could afford to pay for them. If there are things in that asset list that you could sell to pay your debts, do so. There’s no point in hanging onto assets that could be paying your debts for you instead.

Stop Borrowing. Borrowing from Peter to pay Paul isn’t going to be the best way that you can pay off your debts. You need to look at what you owe and to whom, and live on what money you have left rather than borrowing more money to do it. Stop using the credit cards you have and start managing the budget you’ve got instead.

Pay Bills Directly. When you have medical expenses or utilities to pay but you can’t, call the creditor and arrange a payment plan. It’s far better to do this and show trust than to use a credit card and fall behind on the payments.

Payment Holidays. If you have any payment holidays on your mortgage, take the holiday one month and use the money on paying down a few debts. You need to ensure that your problem isn't a permanent one, and the stress from owing money can lead to things like gambling and addiction.

Debts are not easy to cope with and can have an effect on your mental health as well as your physical health. Take the time to manage your debts before they get above your head, and don’t be afraid to do it.

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