Avoiding Bankruptcy solutions with UK debt Assistance
Avoiding bankruptcy solutions with UK debt assistance residents of England Wales and Northern Ireland who are struggling to repay their debts can apply for bankruptcy but this is normally a last resort solution when other repayment methods have failed. Other debt solutions such as an IVA may be more appropriate, easier to manage and have less severe consequences to your credit file and financial future. Once you have a clear idea where your money is going, create a budget to keep you on track of what you’re buying each month– try to reduce your expenses as much as possible and put as much into your debt repayment as you can.
Seem like a bore? Make sure you don’t cut out all your fun- that’s not healthy or realistic– be sure to leave a manageable amount as an allowance for personal spending, which often makes it easier to stick to a budget without feeling deprived. Another trick is to make a game of it- set goals and rewards (not big, expensive rewards) for hitting milestones and see how fast you can get things paid off!
The worst thing you can do when in debt is to shut down communication with your creditors- in fact, the more desperate the situation becomes, the more you should be talking to them.
Find out what they are able to offer in terms of repayment plans, if anything, and whether they can give you a lower interest rate or any other type of assistance to make things easier.
If you feel you’ve exhausted ways to try and take care of the situation on your own and you find it’s just not working, don’t wait to seek professional advice.
A vital part of getting out of debt quickly is to be agile and move fast when you reach a point where it becomes obvious you need help.
A good Insolvency Practitioner will be able not only to help you with a clear assessment of exactly where you stand, they’ll know how to steer you toward the most suitable and quickest path to freedom while knowing how the best way to minimize any damage to your credit file or your future financial situation.