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When debt knocks on the door

Do you feel the January money pinch? As Money and Pensions Service reports, nine million people fall behind paying bills on a regular basis. The financial struggle is especially harsh in January when debt repayment demands start piling up, and the first paycheque has not hit the bank yet.

Household debt on a rise

Echoed by recent official figures, on average the household financial debt rose 9% to £9,400, mostly as a result of higher student loan and hire purchase debt. As the latter often has a damaging effect on credit scores, campaigners have called for stricter controls for ‘buy now and pay later schemes’.

So how can you stop yourself from sleepwalking into further financial problems?

No magic formula

Even though each case is different, the first step to overcoming financial difficulties is to identify the underlying issue of the problem. Budgeting, setting up financial priorities and having emotional support from the family also pay a crucial role in getting through a personal financial crisis.

Above all, please remember that ignoring payment demands may lead to insolvency. If you think that your finances are in trouble, do not delay and seek professional help as soon as possible.

A few months ago, we were discussing the challenges and stigma of problem debt and its undeniable impact on our mental health on BBC Kent radio show.

If you have any questions on the matter, please contact us for a free impartial consultation so you can take your first step towards resolving your situation.

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