Abacus Daily Debt News

Action plans can help reduce “debt anxiety”

Consumers who are worried about their debts can help to alleviate stress by drawing up an action strategy, according to one expert.

The Independent quoted Philip Pearson of P&P Investment as suggesting careful planning is the best method to ease debt problems.

Commenting on a student owing £16,000 on credit cards and loans, he remarked: "The most effective way of reducing debt anxiety is to draw up an action plan."

His assertion was backed up by DebtWizard.com head Mike Thomas, who advised that the man in question, Faze Al, explain his position as a student with no job or assets to his creditors and request a moratorium.

Another expert, Darius McDermott, said that bankruptcy is an option for Mr Al, but warned that this is not something that anybody should go into without fully understanding all the potential consequences.

Mr Al is part of a growing number of people living in Britain who are aiming to become debt free.

Last week, Equifax’s Neil Munroe stated that consumers are increasingly trying to clear their debts due to economic uncertainty.

By Chris Trimble