Confronting Debt

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.

And remember:

No debt, however large, is insurmountable.


  1. says

    Michelle, I think the absence of comments on this thread even though you already have 42 (as of now) on your September goals post makes a good point in itself. People don’t like to think about their debt, but ignoring any problem usually leads to a bigger problem.

    Debt in particular is like a rotten tooth, it will not get better, only worse, without attention.

    Personally I was surprised at the ease of getting out of debt once I got in control of my money and set out on a solid plan. Now after years of living debt free I can say enthusiastically that the benefits are well worth the effort.
    James Salmons recently posted..Support Your Local Thrift StoreMy Profile

  2. M.Clark says

    People tend not to talk about debt. Although as you’ve written it is “prevalent in our society, ” people don’t talk about it because I think people view debt as something to be ashamed of, something to keep secret,something to hide. Your advice to “be open with friends and family” about debt is very interesting. Thank you for sharing this post.

  3. says

    Thanks for mentioning my site here Michelle! Many people don’t like to think and worry about debt – because being in debt can be an incredibly stressful situation. It’s also still a subject that isn’t talked about openly all that much.

    Yet lots of people have debt and continue to live with it until it gets out of hand and then they have no choice but to try to deal with it. The good news is that debt absolutely can be dealt with. :)
    Hayley @ Disease Called Debt recently posted..My #ThriftyFamily Money Saving Tip: Reduce Your Thermostat!My Profile

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