The Debt Swamp

Debt drags you in, it doesn’t go away, it builds and builds relentlessly and, before you know it, nasty letters from bank and credit card companies drop through your letter box. Collection telephone calls will soon follow, the letters get more and more demanding. Specific debt recovery agents may knock on your door.

So if you start receiving payment reminder letters here’s a quick recovery guide. Take action before the debt swamp drags you in!

The 10-step debt swamp recovery plan:
1. Stay calm. The first thing is to assess is your income. Check you're paying the right amount of tax and investigate any benefits you can claim. Get a better paid job?

2. Don't cut your essential spending: insurance, for example, is pretty essential. Check if you can make savings on insurance for the same level of cover.

Check if you can make savings on other essential outgoings? Switching gas and electric providers can usually make significant savings.

3. Put your debts in order. Prioritise which debts you need to pay first and rank them in order of necessity.

4. It's good to talk. Most legitimate creditors will view your circumstances with far greater sympathy if you are honest with them. But at the end of the day each lender will want to get your money before you repay another lender.

5. Get cheaper credit. Sometimes easier said than done, but it pays to consolidate and save.

6. Seek Advice. Swallow any feelings of shame, embarrassment or ignorance, and get help. Active Debt Solutions are waiting for your call.

7. Don't be bullied. A written reminder is legal, but harassment by your creditors is not. Creditors who write the nastiest letters are not necessarily the ones who should be paid first.

8. County Court actions. Don't mistake these for arrest warrants, you can’t go to jail for non payment of debts - but respond to them quickly, as failure to do so will go against you in any final judgement.

9. If your creditors take a bankruptcy action against you, seek immediate help, there maybe better solutions.

10. See if you can raise additional cash. Sell those unwanted items. Take a part time job.