With rising living costs and falling disposable incomes becoming a reality for many households, some people may find that debts they were previously repaying comfortably have become difficult to afford.
Let’s look at what ‘warning signs’ you should look out for if you’re in debt – and what steps you could take if you’re having problems.
Unmanageable debts?
The early signs that you may be losing control of your debts aren’t always obvious. However, it’s important to look out for any patterns in the way you’re managing your finances that may indicate you’re running into debt trouble.
Some ‘warning signs’ to look out for include:
- Always ending the month well into your overdraft
- Making your credit card repayments late – or missing them altogether
- Repaying one credit card with another
There are all kinds of reasons why your debts may suddenly become unmanageable – you could experience a drop in income, an unexpected cost (such as repairing your car) or a rise in energy bills – all of which could leave you with little or no cash for your debt repayments. Whatever the reason, if you’re struggling, don’t hesitate to get help.
Getting professional advice
If you are having difficulty affording your unsecured debts, it’s important to speak to a professional debt adviser as soon as possible. There are many different approaches available for dealing with debt – from informal agreements, such as debt management plans, to insolvency solutions for people with more serious problems – and getting help could point you in the right direction.
For more debt advice, look at this site.
Also, don’t be embarrassed about talking to your lenders: they deal with people with debt problems all the time, and can often help to give you advice and guidance about the best way of getting back on top of your repayments.