Economically, times have been tough for some time now, and this has resulted in many people falling down the slippery slope of debt because they are in dire need to make money. But even if you have the money in place, it can still be hard to keep your head above water, let alone enjoy the prosperity of financial freedom.
Getting out of debt can feel like an uphill struggle to the point people want to give up. When people are in serious amounts of debt, they often do end up on a downward spiral, falling down the slippery slope of interest and other fees accruing on overdue payments. Indeed, one of the vicious cycles in terms of debt is that people often end up paying more in interest and fees than they are from the actual balance. The challenge is that once you start missing a few payments, your financial position can quickly go downhill, and this is when people lose control of their financial situation.
It’s the same in business, yet there tend to be more options available to manoeuvre. As an example debtor factoring helps business to borrow money and you can always get venture capital to expand your business, or avoid a financially disastrous situation.
It’s understandable that people in debt wish to bury their head in the sand due to the emotional overwhelm they face. But the best starting point, if you’re feeling this way, is to contact the money advice service; an independent organisation that offers free and impartial advice on how to get out of debt.
If you’re feeling the pinch and are trapped in debt, it can often feel completely hopeless – yet, there’s always hope. It’s important to remember that just like how the bodies cells replenish themselves, so does your financial history, as CCJ’s and the like are all wiped away after six years.
Even the social stigma that was once associated with bankruptcy is nowadays much less potent. In part this is due to the number of people having to file for bankruptcy, as well as the entrepreneurial culture we are now living in, which has seen many highly successful business people go bankrupt multiple times only to rise up like a phoenix.
The point is that just because you’re in debt, doesn’t mean it’s the end of the world. It can feel like it, when you are backed into a corner and have creditors banging on your door – nobody likes to receive intimidating letters, or be threatened with the prospects of bailiffs. Indeed this is a tremendously stressful experience for anyone to endure; yet there are a number of ways to relieve the pressure.
The best thing you can do, is to take the bull by the horns and seek some advice. There are a plethora of options from IVAs, debt reduction and debt consolidation programs, where you can get one loan that covers all existing debt and then just make one monthly manageable payment. If you own your home, you could even remortgage your property to consolidate the debt you have accrued, and pay it off, in a similar way.
In summary, you always have options, the trick is to take control of your money situation – rather than letting the situation control you!
*This is a collaborative post.