Debt is prevalent in our society and yet can easily go unnoticed. Like many problems, when ignored debt only gets worse however and can quickly become scary. It isn’t just the size that denotes the seriousness of your debt, but your ability to pay it back. Therefore debt can become a large problem even when the numbers look small. In Scotland you can apply for a trust deed in order to ease your debt problems.
The first thing to think about when you fall into debt is how to curb your spending. Though we all nod our heads in agreement when politicians talk about the necessity for living within our means, having to cut out luxuries from our life is often much harder than we would expect.
However it’s vital when it comes to debt.
As Mr Micawber put it in Charles Dickens’ 19th century work David Copperfield:
Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds six, result misery.
Spending more than you earn may not seem like a big deal at first, but you can quickly find yourself in a debt spiral – which is a big deal. As you start to spend more than you earn, you’ll end up borrowing to fill the gap. More of your salary the next month will then be used to repay that debt.
Consequently you end up borrowing more to maintain your lifestyle. If this continues, eventually all your income will go to repaying debts.
Before you get into this situation you need to be firm and limit your luxuries – things like cable, eating out, perhaps even looking to live in a cheaper neighbourhood. If you’re going to plan trips, then work the expenditures into your budget, and do not let it take a chunk out of your debt repayment plan.
If you do need to borrow, if your credit rating is okay then you’ll likely be able to find a cheap personal loan. Companies like K24 can help you with quick cash after assessing a number of creditworthiness factors with the use of Big Data. It is of course vital that you ensure that any such service has a credit license and that you remember that it can still be expensive in the long run to borrow small amounts of money. At all costs avoid loan sharks: individuals and groups who use very unpleasant methods to assert pressure so that money will be repaid.
Before anything else, don’t keep your debt problem bottled up. Remember that you are not the only one. Be open with friends and family, keep a dialogue going with your lender, and seek out expert support and advice if you think it’s necessary.
No debt, however large, is insurmountable.