When debts really start to get on top of you, and it seems like you’ve got no viable way out, it can be easy to think that declaring yourself bankrupt would be the best move you could take. However, this will involve handing over control of your accounts to the official receiver for around 12 months, and could result in you losing everything you own. Obviously, this is something you should aim to avoid, which is precisely why I’m writing this article today. I’ve had debt problems of my own in the past, so I know all too well how blinkered your view can become when put under that kind of pressure.
At the end of the day, it’s vital you remember that there are other options out there, and so failing to utilise or even consider them is a real tragedy. If you declare yourself bankrupt or allow a creditor to do so, you’ll be banned from starting a business, your reputation will be ruined and your name will be published in your local newspaper for all the world to see. Now do you understand why looking at the alternatives is worthwhile? Good, then let’s begin…
Credit Cards
Presuming you owe a lump sum to your creditor, you might be able to keep them happy without making your own situation any worse by applying for some new credit cards with 0% deals on balance transfers. Simply use this funding to pay off whoever you owe money to, and you are then free to reduce your balance monthly without incurring any extra charges. After the 0% period is up, just apply for a new card and transfer the balance again. Repeat this process, and you should successfully avoid paying interest altogether.
Consolidate Your Debts
If you have numerous creditors contacting you all the time, it might be worth considering your options with an IVA. This could halt any debt recovery proceedings and ensure no individual or company is able to make you bankrupt. There are many benefits to this, but the most prominent of all is that you’ll only have one simple monthly payment to make, and this should reduce the amount of stress you feel regarding finances at the moment.
Remortgage Your Home
So long as you’ve been paying your original mortgage for more than ten years, there will be a lot of cash in your house that can be freed up to help deal with the debts you’ve accumulated. Nobody likes having to remortgage, as it will seriously decrease the amount of capital you have to spend during your retirement, but if the choice is between this and going bankrupt, it’s a no brainer. Just make sure you shop around, as there’s nothing stopping you from using a different mortgage lender from the one you chose first time around.
Well folks, there you have it. Now you’ve taken some time to read through this post, I sincerely hope you’re feeling a bit more optimistic about your monetary situation at the moment. Just remember not to let things get on top of you. As the old saying goes “its only money”.
Stay focused, and everything will be fine.
