Great News……Here is the evidence that there is a `Life after Debt`
“When the going gets tough, the tough get going”, Billy Ocean sang at the end of the movie `Romancing the Stone`. Ironically that movie starred Michael Douglas who went onto play a wheeler dealer in` Wall Street`. So let’s take Billy’s lead here and do just that, when dealing with our credit/debt problems. Finding yourself in debt is a bit like finding a lump in your body, I know that because I have both been in debt and had cancer 3 times. In all those situations I acted quickly, precisely and effectively to deal with it. As a promoter of cancer and debt awareness, I meet people every week who have the attitude of; “if I ignore it, it will go away”. It always turns out to be the wrong decision; only in both cases it can sometimes be fatal.
People are killing themselves every week over debts, the shame, the humiliation, the loss of faith, the stress and anxiety. All these things just make it worse for your health as well as for your wealth. Well it doesn’t have to be so, like finding a lump in your body it is so easy to go and get a health check saving yourself a lot of grief and often your life to boot. In the case of debt it is a simple case of getting a wealth check, which you can do yourself quite easily; because rocket science it ain`t. Almost all of us have had our credit ratings cut, and as we live in a culture of credit, that is tantamount to a cut in our wages. As soon as you feel the pinch of the credit crunch get in touch with your creditors. You will know when you are in trouble because the symptoms are usually quite clear, you start to miss payments or pay them later, but to ignore this sign will just compound the problem. If you call your credit card company or your utility supplier at the first sign of trouble, they will usually be quite helpful. I say usually, but sometimes they can be a bit unhelpful and if that happens, then ask to speak to a supervisor and get names. Then complain to customer services or seek legal advice through the citizens advice bureau you’ll find their number in your phone book or online.
Most companies today have a department that deals with customer’s debt problems, it is far cheaper for them to provide this service than to keep sending out letters, or chasing you on the phone and getting no reply. I have found that they will be well aware you are not alone, and they will often have the answer to the problem already. Whatever you do, do not commit to paying off back payments at figures that you know you can’t afford, all this will do is to tell them you are unreliable. You will feel so much better every time the phone rings or that envelope drops through the door, because it won’t be from someone chasing you for an unpaid payment. You will suffer more anxiety and worry if you don’t deal with your problems at first hand. That is the way a lot of other people have gone, they have lost their homes, their reputations, their families and in extreme cases their lives through committing suicide. No debt is worth a death, and if you don`t handle your situation logically then you may well find yourself the victim of the old saying, “when debt walks in the door, love flies out the window”. Sharing a worry will really halve it, and often your partner will come up with a solution that you haven’t thought of.
The really good news is that if you find yourself out of work, either employed or self employed, then you can claim benefits a lot easier than it used to be. However, in the case of your home there is a distinct difference between rent and mortgage payments to the unemployed. In the case of renting a home you get up to 100% of your rent paid (council or private), plus your community charge straight away. In the case of a mortgage it use to be an immediate community charge allowance , but you had to wait 40 weeks for a payment of your mortgage interest only, no capital or endowment payments are included. The government has decided in its infinite wisdom to lower this to 13 weeks, but you only get your interest paid on the original loan. That means that if you have a mortgage of say £150,000 due to loans or remortgage over the years, then you will get only the interest payment on the original price you paid of say £65,000. That means that you will have a shortfall of the interest payment on the rest of your mortgage. Again you need to talk to your mortgage company and deal with it immediately. In all the recent cases I have advised on, the mortgage company agreed to accept what was on offer, and allow the arrears to accrue to a point that is agreed individually in all cases. My advice is to give it 3 months and see if you find work, and then put your house on the market as this will allow the mortgage company to let your account run on. They won’t dare take you to court in most cases, not all but in most; the reason is that no judge will be too willing to rule on an eviction notice if you have taken all the steps I have mentioned above. Insurance policies you have taken out over the years for redundancy and losing your job will rarely turn out to be as good as their word, but if you have one then claim on it. If you have any problems with it, then don’t forget that you also have free access to the courts and legal advice when you are on a low income.
I have beaten off debt many times in my life, and I have beaten Hodgkins Lymphoma 3 times in 10 years. My doctor always tells me that I have such a positive attitude when I am dealing with my cancers, that he rarely worries about me. I have learnt from life that the best form of defence is often attack, so these days I attack my problems instead of building up defensive walls to keep them at bay. I have a philosophy in life now; “there are no problems in my life, just challenges that are waiting to be taken on”. Treat yourself to a bit of logic and deal with your problems at home as you would deal with your problems at work, this is one case where it can be beneficial to bring your work home with you. A bit of vitality is almost the same as a bit of Viagra, both can help you to keep two very vital body parts up, your chin and your……..you get the message and hey! Be careful out there!
