Published in on Thursday, March 26 2009 by Ideal Debt Solutions
You see countless advertisements on the TV and in newspapers and magazines telling you how easy is to get out of debt these days. Of course, most of this is simply nonsense. If there truly was an easy way out of debt, we’d all be doing it.
The reality is that the organisations advertising in this way are trying to sell you their services in providing debt solutions such as bankruptcy, IVAs (Individual Voluntary Arrangements) loans, mortgages and informal debt management plans. Of course, we’re no different. We’re happy to provide expert advice in all of these areas. But the reality is that each has its own distinct drawbacks and it’s far better if you can work your own way out of debt.
This is easier said than done, though. It’s a little like losing weight. You read about endless miracle diets, but ultimately, if you consume fewer calories than you burn, you will lose weight. So it is true that if you spend less than you earn, you will get debt free.
There are many good reasons why people get themselves too heavily into debt.
But if you can really face up to your situation in a realistic way, and begin to balance the books, then you will get debt free.
A good idea is to discuss the situation openly and rationally with your partner or a friend to take a close look at your income and expenditure. You’ll be surprised just how much strict budgeting will help. Many people are at the tipping point of being in credit each month, but the effect of not quite balancing the books each month takes its toll.
So do everything within your means to: A: Maximise income and B. Minimise outgoings. For most people, it’s easier to do the latter than the former. So take a good look at all your expenditure and try to cut down on your necessaries and eliminate any unnecessary expenditure until you’re clear of debt. The debt-free goal may spur you on if you can be self-disciplined.
And when you’ve done all you can yourself to turn things around, take expert advice from fully licensed debt counsellors and insolvency practitioners and/or from reputable and completely objective sources such as the Citizen’s Advice Bureau. With determination, you will get there. Good luck.