Managing stress: Dealing with debt
Learning to manage your money is a skill; however, with the temptation to overspend an ever present danger – especially in today’s world – it can be quickly unlearnt. And once debt becomes a part of your life it can become very stressful, confusing and scary.
The minute you are dealing with money worries it is very easy to bury your head in the sand, putting off the inevitable of having to face up to and deal with the debt, particularly when you feel there is no one to turn to.
Thankfully, there is help out there.
Firstly, there are specialist organisations to help advise you on financial matters, including debt issues, and without doubt, initiating help will be the best thing anyone can do to start to reduce their stress and improve their quality of life.
For free and impartial money advice, contact the Money Advice Service.
One the most important factors when considering your options is to know how much money you have coming in, and how much you are spending.
Once this becomes clear it may be that the best option is to consider a loan to pay off outstanding debt and to effectively ‘wipe the slate clean’, with a plan in place to manage your money more effectively in the future, having hopefully received lots of tips and advice on how to do this.
There are several options for borrowing money, some of which are riskier than others:
Pay Day Lenders
Pay day lenders are companies that offer small, short term, unsecured loans and typically charge extremely high rates of interest. Whilst these type of loans can appear tempting if you don’t have a great credit rating, the amount you will pay back will be vast compared to the amount you initially borrowed, meaning the debt rolls over and takes a very long time to pay off, with increasingly large monthly payments. This type of lending can also have a serious impact on your credit score.
Loan Sharks
Loan sharks are companies or individuals who lend money illegally.They are usually well known to locals in a particular community and often use threats, intimidation and even violence to collect their debts, leaving their victims living in fear. They also charge extremely high interest rates, often resulting in their ‘customers’ not being able to pay back the debt in full. It’s important to know that the Loan Shark is breaking the law and can be reported to the authorities anonymously: https://www.stoploansharks.co.uk/
There is another option
If you do make the decision to take out a loan to consolidate your debts, one of the most sensible and attractive options would be to apply to a Credit Union like Salford Credit Union who, with their lower rates and fees, offers an affordable way to borrow even if you don’t have the best credit score – they also enable to you build up a pot of savings while you repay your loan. There are several loan products to choose from, each of them helping you to take control of your finances, enabling peace of mind and a chance to look forward with positivity.
Talk to us today or apply online if you are interested in applying for a loan with Salford Credit Union.
Equally, if you already have a loan with us and are struggling to pay your monthly payments then please speak with our team who are there to help. For contact details click here
This month is Stress Awareness Month. If you need help with stress, anxiety or any mental health issue there is help out there. Start by speaking with your GP, a family member or a friend, or access help from local organisations such as Salford Citizens Advice bureau. You can access their contact details and plenty of money management tips here.
