Debt Management – What should You Do?

Debt Management – What should You Do?

Have you got into debt and don’t know what to do? This advice might help.

Debt is too easy to get into and takes a long time to get back out of. Like putting on weight, it is bad for our health and causes unnecessary anxiety. We are scared to spend, then feel guilty when we are obliged to. We might not even get to see our wage or salary before it is snatched away to repay past loans.

When you want to do something about it, it’s important to remember that there are options open to you. Let’s start by examining what you shouldn’t do when you get into debt and then suggest some ways out of it.

What Not to Do with Debt

One of the worst things you can do when you are in debt, is to ignore it. If you turn a blind eye to it, the interest will accumulate and it will keep rising. Until you acknowledge it and attempt to work out repayment options with your lenders, you will keep accruing more debit. It is this unpleasant cycle that causes us greater anxiety, thereby preventing us from repaying.

Instead, contact each one of your lenders by telephone or in writing. Explain that payments have gotten away from you and that you want to resume repayments. They will offer you a better rate or a repayment plan better tailored to you, and in return you go back to paying as you usually would.

When the Debt is Out of Hand

But what if it isn’t that simple? What if you have accrued so much debt that there’s no hop of repaying it in your lifetime? What if you owe so many people that you can’t keep track? Provided that you live in the UK, there are options open to you. Here are some of our favourite ways to tackle debt.

If you are a Homeowner: The HELOC

The HELOC has been a popular way of lending and borrowing in the states for quite some time. It has only recently made its way across the pond and, in doing so, has allowed millions of Brits the chance to borrow against the value of their home.

The HELOC offered by leading company, allows you to borrow up to 80% of the value of your home, less the amount you still need to pay on your mortgage. You only apply for it once and when you take it out, you can borrow as much as you need up to that amount. You only pay interest on what you borrow.


In the UK, you can file for bankruptcy and wait a few years. You will repay what you can and some of the debt will be written off. Bankruptcy affects your credit score and limits big purchases. It should be a last resort.

The Debt Consolidation Loan

You can get debt consolidation loans in the UK that do a similar thing to the HELOC. You borrow from one provider to pay off all the others. That one provider makes monthly repayments out of your monthly payment, and everyone benefits from the situation.

Don’t Lose Hope

The main thing to remember is that it’s just money. Repay it or not, it’s not worth your mental health.

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