Next steps for debtors paralysed with fear
Debtors frozen with panic shouldn't feel alone after a study revealed 43 per cent of those in serious debt were too scared to take action.
The talkaboutdebt.co.uk study cited fear of family's reaction as the number one concern about revealing financial problems- causing those in trouble to wait longer before taking action and often adding to their debt burden.
Nearly a quarter of people in debt take at least a year to deal with it and debilitating worry is often a side-effect. 40 per cent polled believed they were unable to move on with their life because of their debt problems.
"This stigmatism of debt also breeds mistrust - so people not only want to keep the problem from friends and family, but also find it hard to open up to or to trust a professional debt adviser for fear of being sucked in further," said independent consumer journalist Jessica Bown.
"The main concern is that while the fear factor is preventing people from talking about debt and seeking help, their debts continue to mount."
As almost all people in debt are there as a result of credit card over-usage, it's no surprise that getting out of the hole take significantly longer than getting in it.
With high interest rates and the fear of impacting credit scores by declaring bankruptcy, waiting to repay debt most often proves more costly than tackling the problem head on.
"By seeking advice early, they can stop the problem from escalating, and prevent the stress caused by serious debt taking over their lives. People get stuck in a vicious circle of fear and inaction, which in reality only makes the problem bigger," Ms Bown continued.
There is an assortment of free debt advisers available to those in need.
Organisations such as National Debtline, Citizens' Advice and the Consumer Credit Counseling Services (CCCS) are free resources that can be accessed online, by phone, post or in person.
The services offered by these organisations are comprehensive - covering everything from budgeting payment plans to how to contact creditors. They also offer anonymous service to help those who need credit counseling but don't want to reveal their identity.
By working with a credit specialist, debtors can get creditors to freeze interest rates and payments while still setting aside money to live.
The key according to experts is to not ignore the problem. In the most extreme situation, missing payments on debts such as fines, child support or taxes can end in imprisonment.
Ms Bown stressed even the most serious cases can come to a resolution with proper counseling.
"It's important that people are aware they can get free advice, and that it really is possible to come out the other side of serious debt and move on with your life," she said.
With over thousands helped each year, credit counseling services see people from all walks of life that have come into financial difficulties for a wide range of reasons.
The average client is mid-30's, married with children with a debt of £24,000.
"As a nation we need to get over the idea that being in debt is shameful and something we should hide," added Ms Bown.
Kelly Gilblom
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