Possibly the best advice for any person in debt is seek assistance, tying to ‘sort it out yourself’ is often a recipe for disaster, even worse is the avoidance of the debt situation, hoping that it will ‘all just go away’ is another common mistake made by those with debt problems.
The best debt advice, is to seek advice, like any other area of life there are debt professionals that can give helpful and essential advice on avoiding more debt, and what to do when the debt situation gets out of control.
Debt advice in the UK is usually referred to as Debt Counselling, this will usually involve an advisor creating what is known as a debt management plan, or DMP. The DMP will consist of a repayment plan aimed at satisfying the creditors, while at the same time giving the creditor a workable structure in which they pay off their debts within their means.
This debt advice may include the councillor negotiating with the company’s in question in order to alter payment amounts, or reduce interest rates and so forth. In return it will often include altering the way the individual spends money, and the amount that they put aside in order to resolve their debts.
There are even several debt advice charities, the most prominent being CCCS, the Consumer Credit Counselling Service, who may be able to assist debtors, their main aim is to educate individuals on how to avoid overbearing debt situations.
There are many individual company’s that offer professional debt avoidance and resolution advice, who have strong connections with many of the large institutions, such as individual credit card company’s, so they are able to offer helpful personalized debt advice.