Lessons you can learn from being in debt

By Mr Bankruptcy

19th February 2020

At the end of 2019 a poll by money.co.uk reported that more than half of the UK adult population would go into 2020 with debt. Particularly worrying is that research has shown that almost a third of British people believe they will n ever clear their debts.

I’ve helped many people with debt issues and believe that seven key lessons which repeatedly arose during that process can help others to also change their situation too.

Seven key lessons for managing debt

Don’t ignore your situation. Until you are able to face your debt you will not be able to start moving forward and change that situation.
Know your priorities. Know all your debts and identify the priority debts that must be paid off first. The consequence of not paying debts such as mortgages, energy bills and council tax are more serious than others. Understanding your debt and priorities will also help you feel in better control of the situation.
Budgeting is essential. What is your income and what are you spending? Where are the opportunities for savings? Learning to budget as part of your management of debt could also help clear debts quicker.
Change your habits. Clearing debt will require discipline and change in your spending and money management habits. You won’t be able to continue spending as you always have done.
Make payments on time. Being late or missing payments can lead to paying more and may also lead to you losing control of your spending again. Keep discipline and service your debt regularly.
Savings are essential. Save as much as you can so that you can pay debts more quickly. Savings also give you a safety net for a “rainy day” such as redundancy and illness, events which often lead to people falling in debt.
Know you are not alone: Talking to friends and seeking expert advice can be a real turning point to tackling debt and gives you hope.

I’ve previously talked about my own story of being in debt. Now, I use this experience to support others with personal or business debt; of all the lessons I’ve learnt, the most important is not to ignore your debts, but to seek advice as soon as possible.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive and friendly approach, we offer a full range of advice and professional services to individuals and business owners/directors facing unmanageable debt or involved in civil or commercial disputes.

Our services include:

● Insolvency support

● Negotiated settlements

● Personal assisted bankruptcy

● Mediation

We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.

Find out if you qualify for a free consultation

If you want to deal with an unmanageable debt, or bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email enquiries@jamesrosa.co.uk to find out whether you qualify for a free consultation.

What can I do if my debt management plan fails?

By Mr Bankruptcy

3rd February 2020

If you have already agreed a debt management plan but are now struggling to make the agreed payments, or feel it no long suits your situation, then it’s time to consider your options.

Is your debt management plan right for you?

When you entered into the debt management plan it may have been, or seemed, the best solution at the time. These plans are a good option if your debt is likely to be repaid over a short period, debts are unsecured loans and you have extra money each month to pay towards your debts. However, you may need to reconsider your current arrangements if:

Your income has reduced
Secured debts may have increased so less able to pay debts covered by the plan
Unexpected costs mean you cannot afford the repayments
You may have taken on more debts

Can you alter a debt management plan?

Debt management plans are not legally binding contracts so you can discuss reviewing the payment terms with the provider. However, their continuation needs the support of your creditors so changes to an agreed plan should be done only after proper consideration.

Take time to review your budget to ensure you are working towards a realistic repayment solution and be aware that cancelling your plan may incur a charge and any fees paid may not be refunded.

Are there alternatives to your debt management plan?

If your debt management plan is no longer working it’s important to act straight away, especially if you’re starting to miss payments. It is in no one’s interest for the repayment plan to fail, so as long as you are talking to the provider it may be possible to renegotiate your monthly payments under the debt management plan.

If, instead, you’re considering cancelling your debt management plan you will need to ensure you have an alternative way to repay debts. There are several ways to manage debts and some solutions may help reduce the amount of debt to be repaid.

It’s advisable to seek expert advice regarding debt management to understand the requirements and implications of each option so that you can find the one that’s right for your circumstances and become debt free as quickly as possible.