What To Do About Debt

By: Nicky Bullimore

It is certain that people in their 20’s to 50’s were not bought up with the idea of saving for something they wanted. Instead, credit has always been easy to come by.

Borrow this much now and pay it off within a 5 year period. Get a new TV, a new car, mortgage, holiday or anything else that someone fell to the temptation of taking out a loan for something they could not pay for at the time they wanted it.

The lending system was not sufficient enough to determine whether or not someone could realistically afford to pay back what they borrowed as well as whether or not they could afford to repay what they borrowed should there be a reduction in their income.

Of course, it isn’t purely down to the lending system to decide all the avenues as to whether a loan was affordable or not. People who borrowed also had the responsibility of deciding whether or not they could repay.

A deciding factor of borrowing was often not included in the decision of whether or not it would be wise to borrow. This deciding factor was, what if something happens that leaves me with a reduced income, would I still be able to pay back what I borrowed?

More often than not, the answer to this question would be no. So at a time like this especially when there has been a downturn in the economy and people are finding themselves out of work, the money that has been borrowed, simply cannot be repaid as the money to repay does not exist.

Money education was something that was lacking in schools for those in their late 20’s to 50’s. We were not taught about borrowing and what would happen if we could not make repayments on what we borrowed. We didn’t understand the implications of borrowing should an agreement with a creditor fail.

We could end up in court, we could end up paying back a lot more than we borrowed and worst still, we could loose our homes.

Creditors do not exactly have one of the best reputations for tactfulness. In some cases people are treated like criminals and spoken to like a lower class of citizen because they found themselves in a situation where they could not repay in full their monthly agreement.

This reputation causes more and more people to fear picking up the phone and talking to their creditors about their situation and in worse cases, people have committed suicide because they simply do not see a way out of their financial situation.

The truth is, regardless of what financial situation you are in, being in debt is not a crime. The reasons why people are unable to keep up with their monthly financial commitments are vast and more often than not, are not intentional.

It is important that if you find yourself in a situation where you cannot pay, then you seek free debt advice from people who can advice what solutions are available in order to resolve the financial difficulty.

And it is a sure fact that more and more people are finding themselves in situations like this due to the downturn in the economy, so you can be certain you are not alone in this and that there is freely accessible advice to help take the burden of debt off your shoulders.

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Nicky Bullimore has been writing articles on various topics for a number of years. For more information about Debt Solutions and Debt Advice, please visit www.goodbye2debt.co.uk

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