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 never 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

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.

Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.