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When do I need debt advice?

24/11/2008

Not all debt is bad debt. Loans, overdrafts and credit card balances are all forms of debt – and used wisely, they can be a very useful way of raising money quickly, or a convenient safety net should any unexpected costs crop up.

Problems with debt can occur when you have borrowed too much, or there has been a change in your circumstances making repayments difficult to meet. The latter often can’t be helped, but it’s no less a worrying situation.

Once debt gets out of control, the interest and other charges can build up more quickly than many people think, meaning that these debts can soon become unmanageable. However, with the right debt solution, you can prevent your debts from growing and, in time, become debt-free once again.

Student debts – should I be worried?
In the UK, many students worry about their debts. It’s healthy to keep a close eye on your finances as a student (or graduate), but remember that student loans (the ones provided by the Student Loans Company – not additional bank loans) are designed to be paid back in small amounts over a long period of time. The SLC will not chase you for payments unless you are earning over £15,000 per year.

If you are a student with credit cards, overdrafts or other personal loans, however, you should be extremely careful that these debts do not become unmanageable, and aim to pay them off as quickly as you can. Where possible, steer clear of these types of debt entirely.

Debt checklist – am I in too much debt?
If you can say yes to one or more of the following, then you probably have too much debt:

• My outgoings frequently exceed my income
• My credit card balance is not going down
• I cannot afford to save any money
• I have to borrow more money to pay off my existing debts
• My creditors have been in touch about unpaid debts but I still can’t afford to pay them

If this is the case, you should firstly assess your budget – in many cases, a reshuffle of your finances can help the situation. If that doesn’t help, it’s time to seek professional debt advice.

Expert debt help from Debt Advisers Direct
At Debt Advisers Direct, we know all about debt problems. That’s because we have a 15-year track record in providing a professional, thorough service.

Debt Advisers Direct offers free, confidential advice about all aspects of debt – and we can point you towards the debt solutions that could have you debt free sooner than you think. Call today on 0800 074 8639 for more information.

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