27 May 2014
May 27, 2014

When It All Goes Wrong

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The world can seem like a dark and dreary place when it goes wrong. It’s scary and frightening and leaves us feeling like we have no where to turn. The theme of Perks of a Wallflower deals with many of these issues. It can happen outside of the movie too when debt problems occur. It’s important, whether in a movie or real life, that you address these problems head on to resolve the financial, social or emotional issues that have happened.

You can be sure that dealing with the issues you’re encountering will sort the problem and reduce sleepless nights. The worries associated with stress and panic will impact on family, friends and employment. Work related concerns become apparent when debt and money issues arise such as absence and disagreements with colleagues. It’s for this reason that dealing with the debt is most important.

Debt Problems: When it goes wrong

Borrowing money isn’t a bad thing. It’s vital, often, to borrow money for a mortgage, car or even home improvements. It’s when the credit is no longer affordable that it becomes a debt problem.

Credit can become a debt issue very quickly and it can be associated with loss of income, death of a partner or other money related problems which are outwith a person’s control. It’s not always the person in debts fault that they have the money issues. This means that debt can go wrong for a number of reasons but it’s not a worry as long as you know how to deal with them.

Debts which were once affordable can quickly be impossible to pay monthly. This is where a debt solution is useful and can help manage and maintain the outstanding debts, arrears and interest payments. Once a plan is in place it will become manageable and affordable moving forward. Similar to the story of perks of a wallflower, by being brave and facing your fears you can fix the debt problem and get life back to normal.

There are lots of solutions to money worries like speaking to the creditors, asking for payment breaks or entering a plan like a debt managment arrangement, IVA,Trust Deed or bankruptcy.

Tips for addressing money problems

There are tips to use to address money worries and issues concerning money problems. These tips can be used to avoid unnecessary stress and strain which money can bring.

Complete an income and expenditure: Look at what you’ve got coming in and going back out every month. Ask yourself if you really need £100 per month for fun or if you cut it back you could afford to repay the debts. Check whether your expenditure will balance to your income and if you have a negative amount, before you pay debts, then you know you have a problem.

Know your assets: If you have a house, car, stocks, shares or other asset worth more than £1,000 then these could be affected by the debt. Write down everything you own. If you have a mortgage on your house then check the mortgage and also check the value of the property. If the property is in negative equity (you owe more than it’s worth) then it would be safe.

Short or long term: Is your debt and money worries short term or longer? If it’s going to take longer to resolve the debt then a debt solution would be the best option. If it’s a short term money issue (6 months or less) then an informal plan may be the best route by taking action to speak to each creditor and offering a token payment plan.

Seek help: As always, our information is to provide a guide and technical assistance. Don’t hesitate to contact a registered charity for professional money advice as they can make a difference to the outcome of your situation.

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