Credits

Thursday, November 1, 2012

Surprise Debt

When most people think of debt they usually think it’s that person’s fault for getting into debt in the first place – either through overzealous spending or not looking into the fine print as closely as they should have. However, although this is true in most circumstances, it is possible to get into debt through bad luck and bad timing; both of which cannot be helped.

Everything could be completely fine one day, and then suddenly your dishwasher breaks, and the repairs are almost as expensive as buying a new one. The next day, something else happens, maybe a window is broken, or your car breaks down. Suddenly you find yourself spending more than you’re earning, all in such a short space of time. None of these expenditures are your fault, of course, but you’re now in a position of debt. You might have to borrow money to pay for the repairs, and soon the payments on your loan are starting to build up. What can you do?

The best course of action might simply to get a little advice. Most debt management companies offer impartial debt advice that could be the difference between making it or sinking under the pressure. Sometimes a qualified expert on the matter is all that’s needed to point out a few tips on making your repayments hurt a little less.

If you have repayments going to different creditors, perhaps a debt management plan would be the best course of action. Companies like ‘Clear Start’ can offer a completely free management plan that consolidates all of your debt into easy payments (one a month). Most people with debts between £3,000 and £10,000 qualify for a management plan, and may find that payments become a lot easier, and a lot simpler, with one set in place.

If your debts are above £10,000, thus a lot more serious, then you may qualify for an IVA. An IVA acts in a similar way to the management plan, in that it consolidates all of your debts into one, and makes the repayments easy and affordable. It also ensures that any debt you can’t pay gets written off, and that creditors can’t hassle you for payments.

13 comments:

Chubskulit Rose said...

Unexpected expenses are the ones that ruins our budgeting skill and this is especially true if you have kids.

PS.. sis, can you please consider removing your word verification, kahirap kasi basahin ng numerical part.

Chie Wilks said...

Debt is unavoidable during times of emergency and not having saved extra bucks for it. A good debt management plan is best to have when troubled or pressured with repayments.

jared's mum said...

debt is something i can do without and try hard to steer clear from. but, as you suggested, sometimes they are inevitable. oh well, there really is no harm in having debts as long as you pay up for them the sooner you get the chance! ;)

Jerla Oh lalala said...

expect the unexpected huh? it is wise to save a little when we get our paychecks because we can surely use that for emergency.

http://jerlalou.blogspot.com/2012/11/fagor-pressure-cooker-giveaway.html

EnAiRrAh (Ryanne) said...

That's why we need to save money for emergency purposes and unexpected expenses and not just spend money to things that we don't need.

Though this is really hard situation like the way it is hard to save when there's a lot of temptation outside our house.

Teresa Martinez said...

It is really difficult to be in debt as peace of mind becomes a rare commodity.

Mary Anne Vinzon said...

Some of the portion of your budget should be allotted on unexpected expense.

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Gene said...

Debt management companies can be really beneficial but the best thing to prevent unnecessary debt is to be ready for such expenses.

purethoughts said...

I agree,there will be unexpected expenses so it's always save money for contingency expenses. But those loans are helpful, too. Just make sure you have a good scheme on the paying part.

http://methewoman.com/2012/11/22/bulging-veins-in-hands-and-feet/

Bless said...

In as much as we wanted to stay away from debt, there is always something that will happen. This is why a good savings attitude must be enforced to take care of the unexpected :-)

Admin said...

Who hasn't have debts nowadays. To me it's something one shouldn't be ashamed about as long as we make way to pay up, we're fine.

Peachy Adarne said...

I agree with this, sometimes unexpected expenses which are expensive just happen. I guess we just have to save to be ready for it.

Bebeng said...

The reason why I don't want to get a credit card. I believe that if I can't pay it in cash, I won't get it. :)