Recent statistics show a marked rise in those entering formal personal insolvency procedures, particularly individual voluntary arrangements (IVAs).
There has also been much in the press in recent months expressing concerns over the rising levels of personal borrowing and debt problems, especially in the younger generations. Worries over personal debt can have a significant impact on an individual’s mental health and wellbeing which was highlighted by a survey undertaken by our trade body R3 earlier this year. R3’s article summarising their findings in this area also provided some helpful tips for individuals dealing with personal debt on which we have based our comments opposite.
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- Acknowledge – by addressing and facing the issues.
- Ask for help – lots of advice is available, an insolvency practitioner will often provide an initial free meeting. There are also organisations such as Citizens Advice Bureau and advisers here will be able to set out what options are available.
- Schedule payments – work out what your payments are overall and what they are for, a debt advisor can help.
- Budget – be realistic about essential monthly payments and ability to meet payments to creditors.
- Communicate – being open with creditors may open up solutions.
- Transparency – when meeting with an adviser be sure to give them a full picture of your circumstances and gather together all of the relevant information so that they can advise you more effectively.
- The right solution – take your time to find the right solution for you and don’t be pressured into something that you do not feel comfortable with. Ensure that you take advice from a regulated adviser.
- Avoid – turning to new credit cards or payday loans as this could worsen the position.