What are the danger signs I should look for with debt?

There are many reasons why people contact us for help with managing their debt, divorce, loss of job, reduced hours, sickness etc. By far the most common, though, is simply overcommitment, or too much debt for the level of income to sustain comfortably.  Unbelievably, many people have no idea how much they owe in total. 

As a rule of thumb, if you are paying more than 25% of your net household income on unsecured debt repayments, loans, overdrafts, credit cards etc, then you need to take specialist debt advice before it gets worse. The most important bills to pay are things like mortgage or rent, council tax, utilities, travel, food etc, which is why anything more than 25% will generally eat into the household budget.

The cycle is depressingly familiar, you get your wages and by the time the overdraft, mortgage/rent, normal bills, credit bills etc have been paid, then there is very little or no money left, so the overdraft builds back up and the credit cards are used for things like petrol, food etc. The bank offers a loan to clear it all, more debt is accrued and off we go again. Relatively small problems can escalate into massive debts very quickly if left unchecked

If this cycle sounds familiar then you need SPECIALIST DEBT HELP URGENTLY. It is foolhardy in the extreme to have to pay interest on your cornflakes, petrol, toiletries etc.

Please leave a comment about your experiences.
Have you had a bad experience with debt?
How did it all happen?

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