Few practical ways to deal with your debt
There are many ways debts can affect people but there is a solution to virtually any possible situation.
10:43 04 October 2013
Most of us think that people become indebted because they spend at a high rate, but the fact is that many have other reasons than that.
One of the most common situations in the UK is that graduate students are not able to find a job and have to repay their college debt. This is a very difficult situation, but here are some possible solutions that can help you deal with it:
- Keep the bank informed of your situation and the reasons why you cannot pay off your debt right now. Sometimes, they may give you more time to search for a job, if you are after one;
- Try to negotiate a lower monthly repayment rate with your bank, one that would have a rather symbolic value, showing that you are determined to repay your debt in the end;
- Cut down on any unnecessary spending, such as drinks and games. You may repay a smaller amount of the debt if not a larger sum if you do so. And one thing that will help you is keeping a spending diary, so you know precisely how much you spend each day and on what;
- Seek out free debt managing advice. Knowing exactly what the bank can legally do and what it can't do to force you to repay will put you in the right position for negotiation;
- If you are staring down the barrel of a gun, look for a free debt charity that might lend you enough to get rid of the pressing debt and give you more time to find a job;
The most important aspect that you should keep in mind is never to ignore your debt problems. Many people, especially younger ones, decide not to deal at all with their debts until they would somehow manage to get enough money to fully repay it.