The Dos and Don’ts of Dealing With Debt

Debt affects many people. Whilst some people are able to claw their way out into the clear, other people may make mistakes which can lead to them sinking even further into debt. Here are a few important dos and don’ts that all debtors should try to follow.



Don’t ignore it – it won’t go away

Hiding repayment demand letters in a drawer is worst thing you can do. The debt won’t disappear – it will simply come back with a vengeance. Many creditors add interest charges to late payments. Eventually they may get a debt collection agency involved, which could result in you having your belongings seized. You’re always best off talking to your creditor – you may be able to negotiate a more management payment plan such as paying the debt back in smaller instalments over a longer period of time. If this doesn’t work, there are always debt settlement companies to consider, which you can compare at sites like These companies can help to negotiate a payment plan for you in a professional and legally-binding manner.


Don’t take out another loan

If you’ve already got loans to pay off, it’s usually a good idea not to take out another one. This will just add on additional interest, making your debt even bigger. People can easily get into a downward spiral by continuously taking out loans to pay off loans. Stop borrowing, and start trying other solutions such as making cuts to your weekly spending and finding new ways to earn money.


Do start budgeting

Budgeting is essential when in debt – without budgeting you could find yourself repeatedly missing debt repayments or buying things that sink you further into debt. Make sure that you are fully aware of all money going in and out of your account from one week to the next and make cuts that will allow you to pay off your debt faster.  


Do try to pay off more than the minimum installment

Paying off more than the minimum instalment each month can help you to pay off your debts quicker. You’ll also end up paying less interest in the long run. This can be handy when it comes to long term debt repayments such as mortgages.



Don’t let yourself be harassed

A creditor should never harass you to pay back your debts. This could include ringing you at unsociable times or using threats and offensive language. The likes of has information on laws concerning harassment that could be worth reading into if you believe that your creditors are being unreasonable. A lawyer may be able to help you if the issue is taken to court.


Do ask friends and family for support if you’re struggling

Hiding serious debt from friends and family could make it all the worse when the truth is inevitably revealed. Tell your friends and family about your situation and see if they can support you in any way. They may be able to help take some of the pressure away financially by helping with bills or even offering to help with the weekly shop.


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