Debt Advice: What’s the Point?

Getting advice might seem like an obvious thing to do when you’re in debt. However, most people who are in debt wait until their situation is desperate before they start seeking advice. So why do people wait so long to get advice?

Why wait?

Most people think that despite having lots of debt, they can afford to continue living as normal because they are managing to make their minimum monthly payments to service their debts. Here is some debt advice from yourdebtexpet.com on common mistakes people make which often make their situation worse and stop people seeking advice:

Making minimum repayments on your credit card

  • A huge number of our clients spend years only paying the minimum amount each month on their credit card bills. However, paying only the minimum amount can cost you a massive amount when you consider the interest that accrues on the balance of your credit card, never mind the length of time it actually takes to clear the balance. If you don’t believe us, try our minimum repayment calculator and see for yourself.

Taking payday loans

  • With promises of quick access to short-term loans being pushed in heavy marketing campaigns, payday loans have quickly become a huge problem for desperate debtors throughout the UK. Lots of people who are struggling to cover their monthly expenditures take a payday loan thinking that it will tide them over for a short period and that they’ll pay it back next month. All too often though, they end up failing to pay back what they borrowed. With interest rates often being in excess of 1,000% (!) a small figure can quickly grow to become unmanageable, and in some cases, can push people into completely unmanageable debt!

Feeling the stigma

  • Despite the fact that so many people and businesses are struggling because of a global economic situation, there is still the traditional stigma attached to having debt. When people come to us to discuss their finances, they are often embarrassed or even ashamed about finding themselves in their current situation. This despite the fact that the majority of people end up in debt as a result of losing their job or divorce.

All of these play a part in ensuring that people avoid seeking debt advice. However, it is crucial to get debt advice as early as possible. Getting help at the start of your debt problems can often mean the difference between repaying your debts or having to file for bankruptcy.

Where to Get Debt Advice

According to a Personal Debt Snapshot by R3, 25% of people think it’s not clear where to get debt advice. The Citizen’s Advice Bureau and the CCCS both offer free advice, but there plenty other places to get it. Your Debt Expert offer free, no obligation advice on debt matters. They can do this in person, or you can get advice on our website. Have a look for debt advice at yourdebtexpert.com.

For more Debt news and advice follow Peter Dean on Twitter – @your_debtexpert

2 Responses to Debt Advice: What’s the Point?

  1. Having debt is just a burden. I hated when I had my car payment and thankfully that’s gone as well as the rest of my high interest debt. Personally I don’t want to have any debt other than a mortgage because I’m just paying someone else my hard-earned money instead of using it to help out my situation. I’m hoping to actually be able to pay cash for our house whenever we decide to buy one. It’s unfortunate that too many people don’t truly understand finance and interest. I wish there was more education in our schools about it because at least they would have been exposed to it once. There’s such a stigma about talking about money which is a shame because an open discussion about it can make a huge difference. Interest is a very powerful thing for the one that’s getting paid and a heavy burden for those that pay it.

  2. The interest rates on credit cards are ridiculous so I always try to pay more than just the minimum amount. The sooner you pay it off, the better. People should really get debt advice before the situation gets worse. They could prevent major problems just by asking for some help.

Leave a reply


8 − = 6