It isn’t just Greece that needs to balance its books and resolve a debt situation – millions of UK people have also spent more than they earn and have run up debts. In fact Greece serves as the perfect example of how not to manage debt (#grexit). As well as the fact that they spent too much their other major error has been to bury their heads in the sand and for too long deny that they had a problem. Now the chickens are coming home to roost.
If you have run up debts and are beginning to feel that it is all becoming too much then what you need is a plan of action – a way of going forward that begins to alleviate your situation and that allows you to progress towards light at the end of the tunnel. So, we’ve put together just such a plan to help you tackle your debts without necessarily having to resort to a debt management plan.
The key elements as we see it are:
Be honest with yourself
Make a budget
Prioritise your debts
Don’t avoid creditors
Consider a debt management plan
Apply for an administration order
If you take this structured approach then you are much more likely to succeed. Once you have resolved your debt situation you will improve your credit score and may be able to consider moderate amounts of borrowing in the future.
Solution-Loans.co.uk is a great place to discover personal finance solutions. Our broking service is free and our website contains loads of information that could help you.
Amanda Gillam is Solution Loans's General Manager and has been since 2009. She is also a prolific writer on personal finance issues, and has been quoted numerous times in articles published on 3rd party websites and in press releases. Her...Read more about Amanda Gillam