Being in debt can be incredibly stressful. Therefore, it is extremely important that should you be in that situation you manage the situation carefully, and attempt to minimize your stress levels.
The first and most important rule when you are in debt is to NOT ignore it. It will not go away of its own accord and by ignoring the situation, it will only get worse.
You must establish contact with your creditors and explain your financial situation. But, before you do that you may wish to seek advice from either a government agency such as Citizens’ Advice or a registered debt agency. Citizens Advice will explain your rights, obligations and options and a debt agency can help you manage the situation.
Indeed, many people who have more than one creditor opt to use a third party agency to look after their debt issues via a debt management plan. You do not need to engage a third party to agree such a plan with your creditors, but many people prefer this route as it removes the stress of having to deal with many credit control departments. Instead, you deal with just one person at the agency who will usually take a more sympathetic approach than your lenders. After all, they are acting on your behalf, looking after your interests and not those of your creditors. (EDITOR’S NOTE: Please do your research first though! Not all are credible, unfortunately)
Agreeing a debt management plan – which details how much you will pay and when – with your creditors will impact on your credit rating, but then being late or missing payments to creditors will also affect your credit rating in a similar fashion.
By agreeing a debt management plan you will get back on the route to financial stability. By keeping to the agreement it is a positive move towards addressing your debt issues and it will help to reduce your stress levels.