If overspending over the holidays has you feeling a little blue, you are far from alone.
With empty pockets, weeks until payday and the prospect of simply getting through the dreaded month of January, there is no better time to start afresh than now. The top priority of many dealing with the fallout of excessive spending and looming debt is to ensure that they do not fall into the same trap this year. So where to start?
Debt Management Plans & Budget Planners
Well, the good news is that a solid plan and a little foresight may have you back on your feet earlier than you think. Knowing the exactly what kind of help and assistance available to you is likely to give you the boost you need. For example, Creditfix offers those struggling with debt assistance via a Debt Management Plan (DMP). The purpose of a DMP is to help those drowning in debt reduce their monthly repayments with creditors, easing the financial burden and the toil debt can have on both mental and physical health.
For those unfamiliar with this option, it is essentially a recognised debt solution which is not within the same bracket as Bankruptcy, Individual Voluntary Agreement (IVA) or a Trust Deed. A Debt Management Plan can be actioned on an individual basis, yet it is far more advisable to consult a seasoned professional who is experienced in this field for a greater chance of success. It is also important to know that the aim of a DMP is to lower repayments rather than have them written off.
Those with lower incomes, single parent homes, and larger families are certain to be hit harder in 2018 than most. This also applies to students, who tend to offset any concerns relating to debt. For those at university, University of Nottingham’s Budget Planner is a helpful tool.
Figuring out your disposable funds by using a budget calculator may be enough to give you an idea of what you can afford, but without knowing how to action a plan and who to approach, it is likely that you may fall back into bad habits. Seeking guidance on what option is the best for you is generally the most pragmatic way of approaching how to deal with your situation. In speaking to advisors, you are likely to get a greater picture of your goal in debt management and a plan of action.
While each individual will come with unique circumstances, it is important to understand the ramifications of not addressing debt problems. A study conducted on the link between debt and mental health concluded that individuals in debt are three times more likely to have a mental health problem. In the study, less than 9% of participants with no mental health problems were in debt. Individuals with mental health problems made up over 25% of the studies.
A new year means a new beginning, to those willing to make it so. Getting the right advice and the right Debt Management Plan just may be the best place to start.