The worst approach anyone can take to debt is to take no approach at all. Those who underestimate the seriousness of debt face the prospect of on-going financial difficulties that can have the most extensive negative impact on every aspect of life.
Contrary to popular belief however, there’s no such thing as an ‘impossible’ case when it comes to debt. Regardless of how severe or complex a person’s debts may be, there are always various avenues to explore to deal with the problem.
Of course, the most appropriate course of action will vary significantly from one case of debt to the next. Nevertheless, every case must be tackled head-on at the earliest possible stage, in order to prevent things from becoming much worse than they already are.
Here’s a quick rundown of just a few possible options to explore when it comes to debt-reduction and elimination:
If you’ve mounted up any number of excessive credit card balances, switching service providers could provide you with a little breathing room. Many lenders are happy to off 0% balance transfer deals for the first year or so – sometimes for the life of the balance. It won’t clear any of your debt, but it will at least massively cut down the monthly interest charges currently being added to your balance.
When faced with multiple debts spanning any number of lenders, a consolidation loan can be a great way of taking back control with a single monthly payment. One loan, one lender, one monthly repayment and one interest rate. Along with making life easier, a consolidation loan can slash the monthly interest payments you are required to make and save you a small fortune long-term.
When the debt you are facing is short-term in nature, secured loan options like bridging loans can be a great option to explore. Along with being relatively quick and easy to arrange, secured loans in the UK carry comparatively low rates of interest and typically do not take credit ratings or even proof of income into account. You simply need to have the required security/collateral to cover the value of the loan.
Always remember that your bank or lender would far rather have you pay back you loan successfully than end up in a position where you both end up out of pocket. So rather than burying your head in the sand, why not speak to your lender directly? If you’re completely honest about your situation and communicate your every intention to meet your repayment obligations, you should be able to strike some kind of deal to make it happen.
Focus on What Matters
Last but not least, nobody wants to make changes to their lifestyle and everyday sacrifices, simply for the sake of paying off their debts. However, doing so can make it so much easier to meet repayment obligations and slowly but surely climb back into the black. Think carefully about the kinds of expenses and outgoings you could either reduce or eliminate entirely, so as to gain a better grip on your debts.
If in doubt, make an appointment with an independent financial advisor or broker at the earliest possible stage, in order to discuss the options available to you.
This article was brought to you by the team at bridgingloans.co.uk.