There Is Always A Solution To Debt

Unsustainable debt, whether personal or business, causes stress, drains the energy and impacts on every aspect of one’s life. Nothing upsets me more than hearing about the breakup of marriages or, worse still, suicide, just because of debt, especially when there is always a solution. Debt management, debt counselling, debt advice is a FCA regulated activity and there are 10 possible solutions to dealing with debt. These options can be stand-alone or a mix and match but, the main thing, there is always a solution and it is just about getting the right advice and the right strategy.

Most people or businesses that suffer unsustainable debt are not stupid or trying to avoid paying their bills but are suffering from situations and pressures outside their control. The cost of living, the cost of everything, has gone up by absurd amounts and what was previously affordable becomes unaffordable. The worst thing that anybody can do is nothing. Do not bury your head in the sand. Talk to the right people; there is plenty of free advice available. Just learning that there are strategies, in and of itself, relieves a lot of the stress. I know this is an extreme example but it does demonstrate what can be achieved: A couple, he was 69 and she was 71, had a portfolio of properties that they regarded as their pension plan. Between them, they received a high income from their respective day jobs and, for several years, they were subsidising the mortgage payments on their portfolio because the rents no longer covered them and the government’s Section 24 exacerbated the problem. All was okay until they learned that their income was about to halve and they could no longer afford to subsidise the mortgage payments. To make matters worse, many of the properties were in negative equity. Consequently, they could not sell the properties (the mortgage companies would not allow the sale to go through) and they couldn’t afford to keep the properties as they were haemorrhaging cash. All they could see was the loss of everything they worked for, bankruptcy and a miserable old age. I cannot tell you how stressed and grey they were when they first came to see me. We strategised everything, we resolved all the issues, they didn’t go bankrupt and they moved to sunnier climates, where they purchased their new home for cash and are now living the life.

I only tell this extreme story to illustrate that no matter what the financial dilemma is, there is always a solution. So, don’t bury your head in the sand, don’t worry, seek professional advice and work that strategy to success.