Product Description
The term ‘debt problems’ can encompass a range of scenarios however it commonly refers to times when you can’t physically pay the bills you have and so you run up arrears. The types of things that normally cause debt problems to start include credit cards, personal loans, mortgage payments, car finance and household bills. The severity of your debt problem will define what happens next and there are numerous ways to deal with these types of problems – some of which are described in the following article ‘Debt Solutions’.

Main Players
As mentioned above the main causes of debt problems include credit cards and other types of finance. With regards to combating debt problems though, the main players include the Citizen’s Advice Bureau, the National Debtline and the Consumer Credit Counselling Service. For more serious problems it is also worth looking at insolvency practitioners such as Debt Free Direct and Debt Matters.

Pros of Debt Problems

• There are absolutely no good points with regards to debt problems and they should be avoided at all costs. If they do start to develop then you should try to fix them before they become a burden that you can’t cope with.

Cons of Debt Problems

• Small debt problems can easily get out of hand and this can ultimately lead to an IVA or even bankruptcy.
• Debt problems taint your credit history and this can prevent you from getting credit in the future – even if you’ve paid your debts off by then.
• Any money you do have spare goes towards paying the arrears and the debts which means a miserable life for you.
• In extreme cases you can lose any valuable possession you own, including your house and car.

Things to Consider when Choosing a Provider
It is important that debt problems are sorted as quickly as possible as they have a tendency to escalate out of control very quickly. The Consumer Credit Counselling Service and the National Debtline both offer free advice that is tailor made for your circumstances and so these should be the first port of call. Don’t be persuaded into paying for your advice from a specialist company as they will only tell you the same as the free helplines.

If your problems are severe enough that you need the services of an insolvency practitioner make sure that they are fully registered and that they don’t charge their fees as an addition to whatever you end up paying your creditors. The better companies take their fees from the money you pay into an IVA or debt management fund and these are the companies you want to look for. Try to take the least severe road possible though as you don’t want to damage your credit history any more than you have to.

BUYability Summary
Debt problems affect more people than you think and in today’s struggling climate it’s hard not to fall into some degree of debt by the end of the month. Do whatever you can to stay in control of your debt though and if you feel matters are getting out of hand then talk to the free helplines. Alternatively you can read through the rest of the Knowledge Centre and find ways to cut back on spending and reduce the overall cost of living.