Unable to keep up monthly payments on credit cards and loans
- See also:
- stop chasing
- debt counselling
- authorised debt settlement
- debt management
- IVA
- bankruptcy
- enquire online
Many people come to Clear Start when they realise that they are struggling to keep up payments on their credit cards, store cards and personal loans. It is often the case that these monthly payments together add up to several hundred pounds.
Due to the proliferation of available finance such as further credit cards and personal loans, it is often the case that an individual will first try to address this problem by making monthly payments on one loan using another loan or credit card - however this doesn't tend to solve the problem. This is practice is known as rotating finance, or more colloquially as 'robbing Peter to pay Paul'.
In these situations it is important to act quickly to get advice as to how to stop the situation from getting worse. The first thing to do is to run through a simple budgeting exercise with one of the Clear Start advisors to find out the following information:
- List of debts, amounts and to whom
- Details of any property, mortgage and further borrowing
- Monthly income, after tax
- Monthly expenditure, the basic costs of living
With this information it is possible to make a recommendation on what options are available, and the various pros and cons of each. This is also an opportunity to ask any questions about what is being recommended, how it works, and what other implications there are. There tend to be a number of alternatives including consolidation, debt management plans, Individual Voluntary Arrangements, and even Bankruptcy.
Should the individual want to, the Clear Start advisor can use the information collected to complete an application form for the appropriate solution, or pass on the details to an appropriate organisation as preferred.
For help and advice to avoid being chased for monthly payments call 0800 138 5445, or complete the enquiry form.
To contact an advisor call 0800 138 5445. Alternatively complete an online enquiry form and an advisor will call you back at the time that you specify.