Stuck in Debt

Trapped in Debt
Image courtesy of David Castillo Dominici /

Today I am writing about being stuck in debt. Debt can be a big burden, it can prevent you from doing the things you want to do and it can cause you stress.

At the time of writing this post, I owe just over £39,000. That is a lot of money. Does it bother me?

No, not any more. It is done, I cannot change it and I have a plan to escape this debt. I have now seen past the situation I am in, I have accepted it and I a moving forwards. It’s all that is left to do now.

This post will be a coming together of some of my other posts, proving help and solutions for your debt as well as further information about the various ways you can get out of debt. I am also open to your own suggestions and stories, please comment in the box at the bottom of this page.

Getting out of Debt, what can you do?

There are a number of solutions available in the UK to help you with getting out of debt. Each method has its own benefits as well as drawbacks. The most suitable solution really depends on how serious your debt problems are, and whether you have any money left to pay your debts after your other monthly expenses.

1. Bankruptcy

Not to be considered lightly and usually used in more serious cases. Below you can find out more about Bankruptcy and what it involves.

Read More about Bankruptcy

- Read More about the Pros and Cons of Bankruptcy

2. Individual Voluntary Arrangement

A good option if it will take you a very long time to pay off your debts. Can relieve the stress of being in debt as Creditors will stop contacting you.

- Read More about an Individual Voluntary Arrangement

- Read More about the Pros and Cons of Bankruptcy

3. Debt Management Plan

A Debt Management Plan is a good choice if you can pay back your Debt in a reasonable amount of time and owe less than £15,000. Despite this I still use this solution because I wanted complete control over my debt but for most people in my situation, an IVA is most likely a better option.

- Read More about a Debt Management Plan

- Read More about the Pros and Cons of a Debt Management Plan

- Read More about setting up your own Debt Management Plan

4. Debt Relief Order

A Debt Relief Order is sometimes used when you are unable to pay your debt. Your debts must total less than £15,000 and there are a number of other requirements as well.

- Read More about a Debt Relief Order

Feel free to read more about the above solutions. Then when you are ready, read on to find out where you can get some help and advice.

Where to get help with your Debt?

If you would rather get straight to the point and don’t want to read the above posts (that’s fine by the way, reading about debt is probably not that much fun), there are other options available to you.

Whilst one of the debt solutions listed above will most likely be recommended to you, at least you have the confidence that a trained advisor will have looked at your situation and made the most appropriate suggestion for your own personal circumstances.

There are a number of organisations who can help you with your debt problems. Organisations such as StepChange Debt Charity (Formerly the Consumer Credit Counselling Service), Payplan and the National Debtline will be able to help you if you are struggling. Visit the Debt Help section of this blog to find out more.

We are quite lucky in the UK in that we can get free debt help and advice. The fact you are not alone is a great help and the support the organisations mentioned above provide can be invaluable.

During my first spell of debt (I know, I have been there once before), I used Payplan. They helped me get back on top of things and I eventually paid everything off. Unfortunately I didn’t learn my lesson and ended up in a much worse situation two years later. You can find out more about that in my first post.

Remember that you can sort out your debt, no matter how bad things are there is a solution for you.

A plan to escape your debt

If you want to get away from being stuck in debt, you need a plan to sort things out. Your reduction plan can involve thing such as cutting back on your monthly expenses, perhaps working more hours or maybe even taking on a second job to raise the money needed to pay off your debt.

- Read More on How to Get out of Debt

It all depends on your motivation and how much you want to get out of debt. For me getting out of debt is one of my main priorities so I do whatever I can to pay things off. I also write this blog as a way to make sure I keep on track as well as help others who are in the same situation.

If you would like to share your own debt stories or simply want to ask a question, please do so in the comments box at the end of this post. I will do my best to help.

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