Here at EverChain UK, we recognise that having financial difficulties can be very stressful. So if you have outstanding debts, it’s tempting to bury your head in the sand. However, this can make the issue worse, as it’s easy to spiral into more and more debt very quickly. The best thing to do is to make a step-by-step plan, and if you’re still struggling, speak to experts for advice.
To get started, the first thing you’ll need to do is consider your goals, and make a list of the steps you’d need to take to achieve them. These goals could be anything from paying off all your outstanding debt, to increasing your credit score in order to improve your chances of getting credit in future.
Once you’ve got a target, the next step is to create a budget. See how much your household currently has coming in and going out. You can then determine how much disposable income you have, and work out how much you can afford to repay your creditors. Make sure you prioritise important bills and debts first.
One of the most important things you need to do in terms of repaying your debts is speaking to your creditors. Make sure you let them know that you’re struggling, and they can help you set up an affordable repayment plan. This also applies to debt recovery agencies – as long as you’re honest about your situation, they’ll be happy to work with you to resolve your debt.
You can also rest assured that the Financial Conduct Authority (FCA) have put regulations in place which mean that you’re protected when you’re financially vulnerable. So if you express that you’re finding it difficult to make the due payments, financial organisations have to support you.
If you’d rather not speak with your creditors directly, you can ask a third party to act on your behalf. This can be a particularly good option if you have a large number of creditors. There are several plans and arrangements you can enter, from debt management plans to IVAs, so it’s essential to discuss all the options available before making a decision. Companies like PayPlan and Step Change can work with you to set these plans up.
Alternatively, if you’re just looking for advice, you can get free and impartial debt support from organisations such as the Citizens Advice Bureau. Their website also has lots of helpful information relating to debt help and financial difficulty.
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