If you are anything like me you understand what debt is, you get that there is something called debt management and you understand the state it can get you into, but you always think that you will never be the one to end up in court or have to class yourself as bankrupt, NewsFlash – those red letters are not going to stop coming through your letter box.
With the current financial situation, companies are more desperate than ever to get their money from you, but they are also aware that money is tight for you too, so this is where you can both win, by doing some debt management of your own.
You need to bite that bullet, open the red letters and see how much you owe and who to, look at your bank account, look at the amount of money you have coming in and look at the amount you have going out and what it is going out to…. is it all meals out, treats at the supermarket and shoes? (I know mine mainly is).
Then call up the company, you may owe them £750.00, it’s a lot of money to you and maybe not so much to them, but why not find a way round this? How about you offer to pay them £50 a month for 1 year. This would give them less than the £750 they want but they would get it back and they do not need to fork out on sending more letters and getting debt companies involved… and you start to see a light at the end of the tunnel.
There we go, one step of debt management completed!
It may be rare but at the end of the month, just a few days before pay day you notice there is money in your account, you know that you have no plans or need for that money until pay day and if it stays in your account it could get spent on anything (shoes or meals out or treating friends)!
So, go to the hidden red envelopes in the bottom of that drawer, pick one at random and phone them up and give them the payment over the phone. Do not pass go, do not withdraw money from the account for any reason and once more, you are one step more into debt management – easy hey?
Then slowly but surely, the red envelopes will start to go down, less and less will come through the door and you will loose this weight off your shoulders that is bringing you down and potentially effecting your work life too.
Then, when all the red envelopes have gone have a look at your bank statement, look at all the money you have used for debt management, and put this money into a savings account, you have done without that £50 a month for the last year, so why not set up a direct debit straight to your savings account? Look how much you can save, by adding those extra pounds floating around in your account at the end of each month before pay day!