Jump Start Jan: Debt Week
Are you worried about debt? Don’t keep it to yourself, it’s better to get some support.
This week we’ll be taking a broad look at debt, including the danger signs, ways to escape, and places to get safe help.
Here’s a quick rundown of the days:
- Day 1: Debt danger signs (today, see below)
- Day 2: Exactly where to start
- Day 3: DIY debt reduction basics
- Day 4: Safe help for serious debt
- Day 5: Debt repayment strategies
- Day 6: Keeping your spirits up
- Day 7: No-spend living
Debt danger signs
It’s one thing to owe a few quid on a credit card, or to be £50 into an arranged overdraft, but if you’re slipping behind on the bills or you owe money to multiple sources then it’s time to admit that you might have a debt problem.
Have a look at the following list. Can you say ‘yes’ to any of these danger signs?
- Being scared to open or check bank or credit card statements
- Being scared to open or check bills
- Final demands arriving
- Missing rent, mortgage or utility bill payments
- More than one missed payment in the last month or two
- Threats of bailiffs, visits from bailiffs
- An overdraft bigger than your monthly salary
- Total non-mortgage debts bigger than 1/3 of your annual wages
- Feeling out of control or anxious about money
- A payday loan you can’t pay off all in one go
- Being hit with default charges or unauthorised overdraft charges
- Struggling to make minimum monthly repayments
- Taking out more debt to pay off existing debt (robbing Peter to pay Paul)
- Relying on credit to make it through to the end of the month, every month
- Buying groceries on credit as there’s no other money
If you have *some* non-mortgage debts, but you’ve genuinely honestly said ‘no’ to every scenario on the list above, you are probably going to be able to sort your debts out without external help. We’ll get started with that on Day 2.
However, if you said ‘yes’ to anything on the list above then you’re in the danger zone. You might need some help sorting out your toxic level of debt. You have to be certain you’re seeking help from a safe provider who isn’t going to profit from your misfortune or make your debts any worse – these will be listed on Day 4.
Tomorrow we’ll be getting the big picture of our personal debts, whether they’re relatively small and manageable or at crisis level. It’s the ideal place to start tackling the issue.
Are you paying off a debt right now, worried about money, or waking up to debt?