Key questions to ask yourself when managing your debt

By Mr Bankruptcy

29th July 2020

Figures back in January showed that the average debt per adult in the UK was £31,845, which is 112% of average earnings. If you were a country, you’d have a slightly smaller debt problem than Jamaica but a worse one than the USA.

These figures show not only the scale of the debt but the potential challenge facing you in order to clear them. On the bright side, Jamaica isn’t going to go bust and no matter the level of your debt, there are always some actions you can take to reduce the problem.

Questions lead to decisions lead to action

However, before you take action, you first need to make some decisions, and to take decisions, you need a clear idea of the situation. Here are some essential questions you can ask yourself that lead to those decisions:

What is the full extent of your debt? Be honest with yourself; knowing the total amount of debt will enable you to make decisions about budgets and the options available to you.
Do you have a realistic budget? Regularly reviewing your budget enables you to see whether you are reducing your debt or adding to it. This helps you to decide whether you can afford your debts or you need to take a different course of action.
Do you need professional advice? If you can’t afford to repay your debts, do you know which options are available to you? Do you know how to create a budget that enable you to repay debts? Do you understand the legal position of your creditors? Are you struggling with creditors chasing you? If your answer is “No” and you’re not sure what steps to take next, seeking advice will help you make the right decisions for your particular circumstance.
Do you need personal help? Take a moment to consider the impact debt is having on your mental and physical wellbeing, and maybe those around you. If you’re feeling anxiety, stress or depression because of your debt, addressing these feelings can also help you to tackle your debts.

Taking the next step

Debt can feel like an unbearable burden so it’s hard to face up to at times. Asking yourself some simple questions about your situation and how you feel helps bring into focus the reality of your situation. A sense of clarity lets you feel more confident in taking the next step towards regaining control of your situation.

James Rosa Associates

James Rosa associates is a firm of debt advisors and debt adjustors. With a supportive, non-judgemental 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.

Understanding debt jargon

By Mr Bankruptcy

10th July 2020

Many industries and professions have their own specific words and terminology. For those who aren’t a regular part of that industry, jargon can be an impregnable barrier to understanding what’s happening and what you need to do.

If you find yourself with an unmanageable debt for the first time, you’ll come across a whole new vocabulary use by debt professionals around debt, insolvency, bankruptcy and potential ways out. To give you a head start, here’s an overview of some key terms you may hear.

Key terms in debt management

These are some of the more common terms you may come across:

Debtor: A company or person who owes money.
Creditor: A company or person to whom money is owed.
Liability: Money owed to another person or company.
Insolvency: A situation when a business cannot pay its debts or when it’s debts (liabilities) are greater than its assets or funds.
Administration: When an insolvency practitioner takes over the running of a company to assess its viability.
Liquidation: The process of selling a business’s assets after it has failed to pay its debts, the money raised from the sale used to pay creditors.
Winding Up Petition: An application to liquidate a company presented to the court by one of its creditors.
County Court Judgement (CCJ) – Applied for by creditors, this is an order given by a county court to debtors to repay monies within a set time. This is part of the civil, not criminal, justice system.
Debt Management Plan: An informal agreement with creditors, with the aim of clearing owed debts.
Bankruptcy: A legal term for a process that allows debts you cannot repay to be written off.
Company Voluntary Arrangement (CVA): A contractually binding agreement allowing a company to come to an arrangement to pay off a debt over a specified period of time.
Individual Voluntary Arrangement (IVA): A contractually binding agreement between an individual and their creditors to pay debts over a specified period of time.
Interim Order: When applying for an IVA, this prevents creditors from taking legal or bankruptcy action while the arrangement is being agreed.

Get advice, not jargon

Getting to grips with debt is daunting and the use of unfamiliar words and terms does nothing to help an already stressful situation. The use of an excessive amount of jargon impedes clarity for clients, which can put them off asking questions. That’s why, at James Rosa Associates, we give clear advice in plain English to help you become debt free and we ensure industry jargon doesn’t keep you in the dark.