Managing Your Debts - 3 Frequently Asked Questions
So you are drowning in a sea of debt and you don't know where to turn.
Or you are running from one too good to be true offer to the next? Then take a deep breath, stop panicking and read this article to find out how to get yourself out of your financial mess.
Should I consolidate my debts or sell up? That's a big question, and the answer is complex and will vary from person to person.
To me one of the big questions you need to address is - why are in this financial mess? Have you been over-spending for years? Or did losing your secure job in the economic downturn throw you into the debt cycle? Have you always had to have the latest designer clothes and toys - or did you get faced with a six-figure medical bill which your insurer refused to pay? If the debt is the result of a one off event then selling an asset may well solve your problem, assuming that it will raise enough cash of course.
Alternatively refinancing may give you a breathing space while you get a new job or increase your income, decrease your expenses and start paying those loans off as fast as possible.
If however you have got to situation by simply living beyond your means for many years then selling up will probably just buy you a bit of time - you really need to look at your entire lifestyle and make some fundamental changes.
Refinancing will just give you a false sense of prosperity and result in even more over spending.
What Should I do before I talk to the professionals? There are plenty of companies offering credit to those with less than perfect credit records.
Don't go rushing off to them yet.
In fact what you should do first is get a clear understanding of your financial situation.
Look at your what you own and what you owe - write down all you outstanding bill balances - you're need to provide this information to any broker or lender anyway.
Doing this step yourself - before you get involved with a third party means that you will be at least clear in your own head where you are at financially.
Can I get finance with a poor credit record?
Or you are running from one too good to be true offer to the next? Then take a deep breath, stop panicking and read this article to find out how to get yourself out of your financial mess.
Should I consolidate my debts or sell up? That's a big question, and the answer is complex and will vary from person to person.
To me one of the big questions you need to address is - why are in this financial mess? Have you been over-spending for years? Or did losing your secure job in the economic downturn throw you into the debt cycle? Have you always had to have the latest designer clothes and toys - or did you get faced with a six-figure medical bill which your insurer refused to pay? If the debt is the result of a one off event then selling an asset may well solve your problem, assuming that it will raise enough cash of course.
Alternatively refinancing may give you a breathing space while you get a new job or increase your income, decrease your expenses and start paying those loans off as fast as possible.
If however you have got to situation by simply living beyond your means for many years then selling up will probably just buy you a bit of time - you really need to look at your entire lifestyle and make some fundamental changes.
Refinancing will just give you a false sense of prosperity and result in even more over spending.
What Should I do before I talk to the professionals? There are plenty of companies offering credit to those with less than perfect credit records.
Don't go rushing off to them yet.
In fact what you should do first is get a clear understanding of your financial situation.
Look at your what you own and what you owe - write down all you outstanding bill balances - you're need to provide this information to any broker or lender anyway.
Doing this step yourself - before you get involved with a third party means that you will be at least clear in your own head where you are at financially.
Can I get finance with a poor credit record?
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