In Some Serious Debt? This May Help

Millions of people get themselves in serious debt worldwide over Christmas and the holidays so if you’re in debt while reading this, rest assured you’re not alone.


I have been in serious debt myself on two separate occasions and my first advice if you owe people lots of money is DON’T worry about it. Now by that I don’t mean neglect it and just forget about your debt but try your best not to let it get you down. If you’ve had a good credit record for a long time and now find yourself up to your neck in this debt then you first need to change your mindset. Worrying about your debt problem will not do a thing to solve the situation and only damage your health and age you prematurely.

The creditors that are phoning you asking when you’re going to make your next payment and how much it will be are simply doing a job, It’s not personal against you if they come across as cold and uncaring, they are trained to be without emotion so you cannot let them get you down or add to your worry.

Don’t Avoid People – Not answering the phone or hiding every time there is a knock at the door is not going to help your debt problem. Creditors get this all the time and it usually just backfires and causes them to take more serious measures against you. Face them with confidence and boldness and always be polite and friendly explaining your situation and the steps you are taking to pay your creditors the money you owe them.

Don’t Stop Paying – Avoid throwing your bills in a pile and ignoring them in the hope that they will go away. Pay for the essentials, rent, electricity and phone bills, then if you do not have enough left to pay off your credit cards, explain your circumstances to the people you owe money to, don’t simply stop paying.

There are two main types of debt to be concerned with:

1: Non-priority debt

If non-priority debts go unpaid then it’s not likely you’ll have anything re-possesed. However, if you choose to ignore the creditors and make no offers to pay them anything then you could end up in court.

Non-priority debt includes:

a) Credit Cards

b) Store Cards (clothing, furniture stores etc)

c) Bank Overdrafts

d) Personal Loans

e) Hire Purchase ( only counts as a non-priority debt if the item is not essential e.g. a television bought on hire purchase)

f) Money borrowed from friends and family

2: Priority debt

Priority debt is the type of payments that need to be paid on a month to month basis with no exception and have to be given priority because of the serious consequences of missing regular payments.

Priority debt includes:

a) Bond or Rent

b) Income tax and VAT

c) Hire purchase ( only counts as a priority debt if the item is essential e.g. a car you use to get to work)

d) Fuel Debts (electricity and petrol)

e) Traffic Fines

f) Child Maintenance or Support, Rates and Taxes

If you really can’t handle facing your debt alone seek professional help. Do a search on google for local debt relief agencies, phone and speak to them about how they can give you help with your debt problems.

Stay calm and as I said in the beginning DON’T worry. The last thing you need now is more debt in the form of doctors or hospital bills!