A recent report in the UK financial press has indicated that some 25% of the UK population are suffering from unmanageable debt, and with the economic situation set to get worse this figure looks likely to rise substantially.  Are you stuck in a debt trap?

If you are stuck in a debt trap it is essential that you are proactive rather than reactive, and do not leave it too late to sort out your affairs.  Too many people in the UK would rather bury their heads in the sand and hope that all turns out well in the end – the chances of this are minimal!

Unless you tackle your debt problems head on there is every chance that you will get yourself into a situation where you have little control, maybe looking at an IVA solution or Bankruptcy and the problems associated with these situations.  By tackling your debt problems early it may be possible to consolidate your debts into one manageable amount, possibly spread out over a longer time scale. 

While there is no pain free way to “fix” your personal debt problems, the longer you put them off the worse they will get.  A simple call to your credit card company, your bank, etc to alert them to your problems may well yield a lot more useful information than you might expect.  It is in their interests to keep you solvent and keep you from the clutches of either an IVA or Bankruptcy, where they will be forced to write off large amounts of debt.

Do not be scared to admit that you have problems, as this is the first stage of your fight back.  That is not to say that either an IVA or Bankruptcy may not be the best option for you, but either way you will take more control of the situation and relieve some of the pressure in the long term.