Nothing everyone is educated about potential financial pitfalls and debt can pile up quicker than most people realise. Careful analysis and a little research suggest it is possible to get out of the mess. It won’t be immediate but it is possible to continue living your life without having to dread the constant reminders arriving in the post.
There is help available to most people who are alarmed to discover that they do not know how to handle the amounts of debt they have built up over the weeks, months, and years. Not everyone manages to get to grips with credit card debt in just one month. Some people need a couple of months or longer as it requires a disciplined approach. Let’s look at a few reasons why someone may need debt help.
This is perhaps the single biggest reason why someone’s finances takes a journey – sometimes long, sometimes short – into the murky waters of debt and overspending. This has become even more commonplace since the recession when many companies have had to let go of thousands of workers. The people who lost their income often had little savings, which meant that they soon struggled to pay the basics – food, rent or mortgage, and travelling expenses.
This is put into perspective via a 2019 survey suggesting that the basic cost of living is £25,000 a year for a single person in Britain.
Existing debt problems
The majority of people with debt find it difficult to manage their finances. This is often because they have multiple creditors who demand multiple payments from them, often at different times of the month. Unsurprisingly, many people struggle to keep track of what they owe and the interest on the debt continues to mount. Some debt companies succeed in helping those in financial difficulties because they understand how frustrating the process can be and have long term solutions in place.
Changing Life Circumstances
Most often this means their circumstances have changed for the worse due to an unforeseen event. There are numerous other reasons – besides unemployment – why someone needs debt help due to changing circumstances. Falling ill is one such reason, as is divorce. Any of these reasons could mean that the person has a smaller amount of disposable income, whether it is for a few weeks or a few months. This often means that they can benefit from a discussion about their finances with someone who is in a position to help them.