Being financially insecure can be one of the most stressful experiences in life. The feelings of helplessness and frustration can affect every aspect of your day to day life, and soon it seems like an unsurmountable problem. To take control of your finances, you need to know exactly where you stand with your debt. Here are 5 essential questions to ask yourself when you are in financial distress.
How Much Do I Owe?
Sitting down and accurately assessing your level of debt is the first step towards improving your situation. It can be hard and emotionally challenging, but take an analytical approach and don’t leave out anything, no matter how small it seems. Using a spread sheet can really help you to gauge your finances, and can assist with working out suitable repayment plans.
Is This a Temporary Problem?
Have you been in a situation of financial distress for a while, or is it a recent occurrence? If this is a temporary problem then your solution may be different from someone who has been struggling with debt for a while.
Am I Behind On My Payments?
It can be hard to admit just how behind you might be on your payments, but it is essential to acknowledge it if you are. Ignoring the problem will lead to serious legal action being taken out against you, when sometimes all you need to do is to let your creditors know what is going on.
If you don’t feel comfortable contacting them directly, a professional debt solutions agency such as Fox Symes can organise everything for you. They will assess your situation and give you a realistic plan to achieve financial stability. If needed, they will negotiate with your creditors to give you a repayment plan that works for you, with one monthly payment and the lowest interest rates possible.
Can I Consolidate My Debt?
Debt consolidation can be a good way to simplify your finances and give you a sense of control over what you owe. The way it works is that all of your debt is transferred onto one loan, with one repayment and a set interest rate. Whether or not you will qualify for debt consolidation depends on your individual situation. Seeking professional advice is recommended if you’re considering consolidating your debt.
Will I Have to Consider Bankruptcy?
Think very carefully before you file for bankruptcy. It should be treated as an absolute last resort, as it can have serious consequences both now and in the future. There are many different debt solutions that you should investigate before you consider bankruptcy, as they do not carry such serious repercussions.
Whether you want to consolidate your debt, negotiate a new payment agreement with your creditors or even consider bankruptcy, be sure to seek professional advice. A leading debt solutions agency like Fox Symes can help you regain control over your finances, and assist you in getting out of debt. Don’t feel like you have to tackle this alone; help is available for every level of debt to get you out of your distressing financial situation.
Written by Emma Jane