The prospect of debt hangs over everyone who doesn’t fall in the wealthy bracket. And, if you are living a little too close to the edge for comfort, there is every chance that, one day, you’ll hit troubled waters. At this point, it’s no surprise if you start to get worried – how are you going to pay your bills?
Well, if this is happening to you right now, don’t panic. This guide will help you get out of your tricky situation in the best way possible. It doesn’t matter whether they are utility or medical bills – these ideas can help. Let’s get stuck in straight away.
Sort out your debts
Your first step is to get all of your debts written down on paper and arranged in order of importance. Which ones are critical, and which ones can be left until later in the month? Are you threatened with eviction if you don’t pay your rent, or is there a chance your utilities could be cut off? These are vital to sort out first – more so than your credit card or loan repayments. Once you have everything written down, you can move on to the next stage.
Contact your creditors
Don’t be afraid to talk to your creditors – they have a legal responsibility to treat you fairly. And, don’t forget, that however much pressure they try and put you under, being in debt is not against the law. However, it isn’t going to help you just to avoid your creditors and pretend it isn’t happening. The sooner you get in touch with them, the better your prospects will be.
Now it’s time to make arrangements. If you have serious issues with debts that could severely damage your ability to live a normal life, they have to take precedence. Speak to your other creditors and explain your position, and tell them that you are going to have to reduce their payments for the time being. You may end up with a hit to your credit score, but at this point, it’s irrelevant. Once you have come to an agreement, you can use the money you have freed up to pay off your most important debts.
The payday loan option
But what if you can’t make those arrangements and you are approaching a debt deadline? In any other circumstance we would definitely say you should avoid a payday loan. But, if you can pay it back straight away, or within the terms of the agreement, they can be a good option. However, bear in mind that the APR can be very high – it’s the price you pay for an almost no-questions-asked loan. Cash loans can work for you, of that there is no doubt. But, you have to make sure that you have the ability to pay it back quickly, or you could face even more serious debt problems.
Well, we hope that has helped. It’s always a good idea to seek out advice from a debt charity if you are really feeling under pressure. The key is not to panic – there is a way out, no matter how desperate your situation is.