Everyone ends up with a few debts every now and then. Some of them can be kept under control – proper financial planning ensures you can keep track of everything and lose debts one after another. But then, if you have failed to do your homework upfront, chances are you will feel overwhelmed at some point.
Debts come in all kinds of shapes and sizes. Some of them are small and may seem insignificant. Some others are larger and come with high interest rates, as well as fees that keep building up. It feels like a never ending cycle. Understanding how to seek help and who from will help you get back on track before it is too late.
The importance of paying your debts in the correct order
Each debt will come with consequences. Some of them may have serious consequences, while others are not that bad. No debt will be left as it is though, so there will always be some sort of consequences. When struggling with debts, you have to sit down, analyse your options and understand what priority, non priority and emergency debts are about.
Dealing with a debt emergency
A debt emergency is an actual emergency – your debt has been overlooked for too long and action is being taken against you. This type of action can come in various forms. You could end up with disconnection (a utility bill), court action against you, bailiff action or perhaps eviction (common for rent or mortgage issues).
Ideally, you should not wait until you get there. But if you did, you should know that you can get free and independent advice in an urgent manner. Debt adviser will be able to represent you in front of the law, whether you deal with a bailiff, creditor or court. You will also receive beneficial advice on what to do in order to overcome debt.
On another note, make sure you always show up in court hearings – you have the option to make an impression, explain your case and perhaps reach an agreement. Fail to go and the judge may take a decision against you – after all, there is no one representing you there. Others may not necessarily know what your situation implies.
Once in the court, you could explain the situation. You could tell the court what is happening and a decision could be made to help you out. Some courts also rely on various organizations – such as Citizens Advice – to provide last minute advice on the situation and the next steps. If you have a court hearing coming up, talk to someone before your case is discussed.
Free advice on dealing with debt
It is essential to prevent struggling moments. When facing an emergency, seek help. You are not alone in this venture and there is plenty of help out there. Believe it or not, more than 50% of all people struggling with debt have no idea where to start from – this is when a professional debt adviser kicks in to give a hand.
Debt situations can go in more directions. Credit cards are maxed and no one will lend money. Things are out of control and debt grows faster than the income. Plus, it takes way more than expected to pay everything back. Advisers are available by phone, online or face to face. There are free organizations out there, meaning you will not have to pay for advice.
Bottom line, debt can embrace more forms and things can easily spiral out of control. Professional advice will prevent emergency situations, so try to act before it is too late.