What Action to Take If Your Debts Are Mounting Up

It is so easy for debts to creep up on you and become a problem. It may be an extra burden that is causing so much trouble, such as increased heating bills in the winter, an unforeseen problem with the car, or a boiler or domestic appliance breaking down and needing replacing.

Whatever your financial situation, you need to take action immediately. If you cannot pay the minimum monthly payment on your credit card, you could face an administrative charge, and the interest will keep mounting up on the unpaid balance.

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You may also find that you are having problems keeping up with the monthly electricity or gas bills during the winter months when the heating is on full blast.

If you feel these are short-term problems, you could call your suppliers to see if you can come to some sort of arrangement.

Do Not Ignore Your Financial Situation

The most important thing is not to ignore the problem. This could lead to even greater bills and the chance of your creditors calling in the bailiffs or taking court action.

If your problems are larger or are going to affect your finances long-term, it is best to put yourself in the hands of an insolvency specialist.

You can talk about your financial situation and work out the best solution for you. It could be that you are advised to set up an Individual Voluntary Arrangement. This is a good solution if you have large debts owed to two or more companies. You can then arrange to make one monthly payment to your insolvency practitioner, who distributes this to your creditors.

This is a long-term solution, as you can take out an Individual Voluntary Arrangement to be repaid over five years or even longer. If you are about to come into a windfall such as an inheritance or bonus at work, you may want to look at another solution for paying back your debts.

You can seek Carringtondean help with debt advice to find the best way forward.

Look at All the Options Concerning Debt

Using a specialist debt advisor may bring up solutions which you would not have realised were available. You will be given professional advice to help resolve your financial situation.

Finding a repayment system will help prevent further problems in the future.