What to do when a debt collector calls
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An end to sleepless nights and the fear of a debt collector standing on your doorstep may be easier than you think.
It may take some time and research to get your finances on the slow road to recovery – but your peace of mind and a positive financial horizon ahead can be worth it.
The key, according to financial adviser Ellwood, is to “find out what caused the debt. If it was a temporary situation, what were the warning signs?
“If it wasn’t temporary, like losing a job or divorce, then lifestyle changes have to be made for the long term.”
Build a budget
It maybe worth asking yourself questions about what got you into this position. Was it a case of overspending on non-essential items? Perhaps your day-to-day expenses budget was too high, or perhaps some of your goals were too ambitious.
“It sounds like hindsight but cut your outgoings, assess what caused the problem and be brutal,” highlights Ellwood.
Your future finances can be within your control more easily than you may realise. A simple budget may need to be drawn up so you can review your finances more closely on a day-to-day basis.
“The more people understand their money, borrowing and budgeting skills, the less likely they are to find themselves in one of the awful scenarios,” according to Credit Action.
Having sound future money management doesn’t prevent us from going on holiday – but it can set financial priorities and put a cost on our choices.
