Over the last two decades Finance has never been easier to obtain. Finance companies have literally thrown finance at customers. The lenders and providers have loaned money with insufficient affordabliity checks being carried out. Our personal borrowing (credit cards, hire purchase, loans and mortgages) as a nations has grown beyond belief and the amount of people now unable to repay their debt is huge, many owe more than they could ever afford to repay in their lifetimes. A debt solution is needed soon before our debt plague spreads.
In some situations the amount of debt people have obtained has surprised them as they started out originally with a controllable debt. Then their circumstances change and they are caught up in debt. Personal debt often happens due to illness, divorce, gambling, drinking or bad financial planning. The debt that was once controllable now spins out of control. The debt then becomes too much for them to cope with and then they start to suffer from the strain of the debt and the stress of not being able to control it.
Our society is generally well educated but unfortunately our schooling system over the years has not provided people with enough knowledge of how to manage, control and handle their own personal finances (credit cards, hire purchase,loans and mortgages) but unfortunately our schooling system over the decades has not provided people with enough knowledge about how to handle, manage and control their own personal finances.
Relationships and marraiges split up due to finance problems. This leads to their debt spinning out of control as they need two homes and the finance to settle a divorce case, this often leaves families poorer and in long term debt. It is not unusual for people bury their heads in the sand and it is not uncommon to leave a partner who is unable to control and manage the debt to look after it while the other partner ignores the situation. When they finally accept the situation their debt has spun out of control.
When solving any financial debt situation it is important for both parties or an individual to acknowledge that there is a problem. You then need to find out what help is available and what can you do to repay the debt. The best place to do research is on the internet. Don’t make any snappy decisions until you have considered all the facts and found out what options are available to you and pleasetake advice from a professional.
Homeowner find the easiest way to remedy the situation is to use the equity within their property to remortgage and consolidate their debt. This is not considered to best decision as you will be spreading the debt and the risk over a longer period and you can lose your home if you do not keep up your mortgage payments. The initial benefit is a reduced monthly payment but you will pay more money over the term of the mortgage.
Citizens Advice Bureau is probably the best place to start in your search for solution to your crisis. ( Debt Management, Individual Voluntary Arrangement, IVA or Bankruptcy) They offer free advice, help and assistance but remember this organisation is generally staffed with volunteers, who have had some training. You should also contact one of the charity funded debt help organisations. They are able to give you unbiased advice as they have no axe to grind for they are a non-profit making organisations and they are only interested in helping you. By Mark Aucamp
Contributing author Mark Aucamp has been providing this website with content and he is acknowleged as having experience in this field and has had 10 years experience in the field of Debt Management and providing Mortgage Advice. He is the administrator and author of the Talk Money Blog. For more further detail of how to possibly clear your credit card debts then visit:- www.finance-claims-checker.com
By Mark Aucamp