Getting Out Of Debt United Kingdom

Getting out of debt can cause major stress in your life We all over spend and We all go over our budget.
So how do we deal with it? Well the easy answer is not to do any of the above, but none of us stick to that rule because we all want our little luxuries in life.The holidays the nice cars the bigger house the plasma television the list is endless,then the children come into the picture wanting all the latest trendy clothes and latest computer and gaming releases.
My Grandma was great with money and budgeting She had little jars all marked with the relevant bill,Gas Electric,Water the dreaded Poll Tax, Catalogue it was a good system.Every week when She got paid She would put money in her little jars and when the Bill came the money was there,She never used a bank but put her jars under her bed for safe keeping. Unfortunately I am not like my Grandma was.
The question is how do we get out of debt?Well that all depends on how much debt you are in to deliberate what the best action is to take.
If you are in serious debt over £25000 and above I would seriously consider Bankruptcy.This option should always be a last resort it costs about £518 for the bankruptcy order,which in some cases you can get help with the funding from various organisations, and if you go bankrupt it has a lot of restrictions.
For example bankruptcy official receivers can seize various assets from you, and once you are bankrupt it is at least 5 years before you can even be considered for any sort of credit.You can get more information about bankruptcy from the Insolvency Service Website
If your debts are under this amount then there are various ways to get them paid off, many companies are now set up to help you with debts but most charge a little to help you.They do not take payment all at once but they add a little on top of your payments to compensate for their work,example:if you owe £250 they will keep taking payments until you have paid £280. Usually they take on your debt and split what you can afford between your creditors,this method is great if you do not want any stress.
The method I use to clear my debts takes a little bit of work and some postage stamps.First make a list of all your debts,then draft a letter in a template stating the following facts.
1.Your Name and address and a reference to the company or debt you owe [with regards to]
2.Start letter with Dear Sir/Madam
3.Write a brief note stating that you are at this moment in time that you are in financial difficulty.
4.Explain that you are willing to pay the debt but you can not at this moment in time afford to pay all the outstanding amount.
5.State that you will send a break down of your income and expenditures.
6.Finish letter with Thank you for understanding my predicament.
7.Add note that all correspondents should sent by letter and not by phone.
After you have drafted template send it out to all your relevant creditors
Next stage write a valid income and expenditure letter and send also to your creditors,always make sure you state what you can afford.Once the creditors receive your income and expenditure 90% of the time they will accept a smaller payment from you as long as you keep up your payment to them you should have no more problems from them.
Thank you for reading my post please feel free to comment