Serious debts create a spiral of panic. This leads to us failing to think things through properly, ignoring bills or calls from debtors which, in turn, causes constant anxiety and stress. It’s a no-win scenario. The only way to deal with debt is to take action.
If you find yourself in this position, take a look at the following Do’s and Don’ts before you take any further action. They may save you from making a terrible mistake or making your situation worse.
- DO devote all your efforts to improving your income from your employment or business and getting back in control, rather than wasting time and energy worrying about your debt problems.
- DO check out anyone advising you on your debt. If you are going to trust this person with your financial matters you want to make sure they are legitimate and worthy of your trust. Beware of bogus credit repair companies.
- DO treat with extreme caution any offers of help that includes borrowing additional money, the insertion of capital or third party funding.
- DO remember that you are not alone. Getting proper help will reduce your problem. It’s difficult facing it but it makes it easier in the long run and is far more difficult to face if you ignore the problem. So, DO take professional advice as soon as you can no longer cope with your debts, no matter how large or small they may seem.
Now, some DON’TS!
- DON’T try to borrow your way out of trouble. This never works, you just make matters far worse.
- DON’T make offers to pay your debts unless you are sure that you can afford them.
- DON’T pay off one creditor in preference to another, you could end up in trouble.
- DON’T go into detail with any creditor about your situation with other creditors unless you are obliged to declare other debts.
- DON’T allow bailiffs or any other collecting agents to intimidate or frighten you, and never sign anything from them until you have had advice.
- DON’T ignore the problem and hope it goes away – it won’t and you know that. The only way to get debts to go away is to tackle them. Click here for our Debt Action Plan!
- DON’T panic, give up or make yourself ill over debt! Debt problems are solvable and you can put them behind you – as long as you get help – please don’t be too proud to ask. Click here to learn more about debt and stress and how to keep healthy.