There are a variety of reasons why you may have got into financial difficulty. It could be that you have been made redundant and have not been able to get another job or you may have overspent at Christmas and are struggling to get your finances back in order.
So, what can you do about it? Well, one thing is certain, you should not try to ignore the situation as it will not sort itself out unless, of course, you were to win the National Lottery which is unlikely.
You need to face up to your debt problem before it gets worse. If you don’t feel that you can sort things out on your own get some debt advice from someone that may be able to help. That could be from the likes of the Citizens Advice Bureau who can provide free and impartial advice.
There are also a number of debt management companies that charge fees for providing help with sorting out your debts.
You need to keep open the communication lines with your lenders either by phone or in writing or a combination of both. What the banks and building societies who may have provided your mortgage, loan, current account overdraft facility and credit card do not like is that you refuse to keep in touch. After all, they realise that sometimes people do struggle financially.
My experience has been that they will try to help in a variety of ways – after all, they do want to be repaid. That may be to defer loan or credit card repayments for a period of time or even to freeze interest and charges and agree a modest repayment program at a level that you can afford to be reviewed on a regular basis.
Your priority debts should take precedence. These could include your mortgage, rent, secured loans, utility bills and council tax. Next, you should deal with your non-priority debts such as unsecured loans, credit card, catalogue debt and overdraft.
Your credit rating may be badly effected if you get into financial difficulty resulting in you finding it difficult to get credit for many years to come.You may wish to check your credit history with one or more of the credit reference agencies.
Your bank could ask you to make alternative banking arrangements. If that were to happen, you could consider a basic bank account that is provided by many other banks and building societies or even look into a guaranteed bank account that are available from a number of other financial institutions. With the later type of account, no credit reference search is carried out on you so, even if you have a bad credit rating, you may be able to open such an account. .
Unfortunately, getting into financial difficulty can have a serious detrimental effect on your health and life in general. Facing up to your financial difficulties and doing something about them may, hopefully, help you cope with life more effectively and reduce or remove the stress that you have been feeling.
Hopefully, the above has provided some bad credit help.