Find Financial Freedom

It’s an interesting position to be in, but more and more people are in this situation thanks to the credit crunch and subsequent economic slowdown (polite way of saying “bust”, eh Gordon Brown).

I read an article in The Times over the weekend about the “couple crunch”, which was referring to the number of couples that are breaking up due to one (or both) of them going through financial difficulties, as a result of job loss or drop in their self employed income.

There must be thousands of families all going through a similar situation, and there will be more in the future as the recession goes on - it will get worse before it gets better.

But what can you do about it? This entirely depends on your situation, but suffice to say that there are many options available.

If your problem is short-term, and you suspect you will get another job soon, then the best thing to do is cut back on spending where possible, contact your creditors (because we’ve all got creditors) and inform them of your change in circumstances. They may well accept a reduced payment from you while you sort out your employment situation. However, you will need to clear any unpaid amounts once you’ve started a new job, which may be difficult depending on how tight your budget is.

If your problem is not related to loss of income, but is endemic of the fact that you have lots of debts which aren’t getting paid off, then you may have to look into other solutions.

The three main solutions in situations like this are:

IVA

Bankruptcy

Debt Management Plan

There are various ways that each different plan will help you, and each plan will affect your ability to borrow in different ways. I would recommend that if you are struggling with paying your bills, you seek professional advice.

Related Posts:

• How Can Debts Get Written Off?
• How To Get Out Of Debt

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