An alcoholic has to face up to reality, take stock of their
situation, and then take one day at a time. Debt problems are very
similar. You have to admit (if only to yourself) that you have
commitments beyond your control. You have to face up to the reality
that they will not go away. You need to take stock of your entire
financial position, and finally you have to deal with it: not ‘one
day at a time’, but, just deal with it!
The first thing you need to do is to prepare an ‘Income and
Expenditure’ form. By working out what you have to spread over your
creditors (however thin) you can begin to control your finances and
future.
Next you have to write or telephone all of your creditors (letters
are preferred, as they are a true account of your negotiations). You
need to state your current personal and financial position. It can
help to explain why you find yourself in this position if the reason
is helpful to your case (telling your creditors that you lost lots
of money betting will not endear them to your cause, further, your
creditors may decide to take legal action as you are likely to
return to gambling at some stage).
on Debt Management and
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Our advisors will be happy to
give you free debt advice about how you can manage your
debts
You need to state what you can pay and when this will
happen. You should request a written acceptance of your
offer, and that they will stop interest accruing on your
debts.
The mood of your letter should be that you had a problem,
that you cannot get out of it overnight, and that you need
their help and understanding to achieve a satisfactory
solution for all. Creditors do not need to accept your
proposal. Some may agree to, say, a three or six month
arrangement, then review. Others will accept easily, and a
small number may refuse (with the latter, you need to
plainly express that you offer something for everyone, or
nothing for all).
Answer creditors letters promptly; be open and fair; never
be bullied or bullish. As a debtor you will get intimidating
letters and telephone calls, they will ‘want this now, and
‘that by then’ or ‘we will do that’. Creditors believe that
‘the louder you shout (at debtors), the more you will get
paid’ (and it works). By showing your creditors that you are
in control of your debts and your future, you will stop them
shouting and get them to start listening!
