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Confront your debt fears

If you are in a lot of debt, you may start to think that there is no way out and that you are never going to be free of it. You are probably scared to open the mail in case it is another credit card bill or your bank statement showing just how overdrawn you are.

It doesn’t have to be this way. With some simple planning and organisation you can get your life back in order and start living and stop worrying about your financial situation. The first step is to confront your fears and find out exactly how much money you owe. This is probably the hardest part and once you have achieved this, you can move forward.

It is often easier if you share your debt problems with a trusted friend. It will be a weight off your shoulders once you have told somebody else. Ask them if they would consider helping you organise your debts as you will not feel so alone. If a friend knows about your situation, then they will be able to help to steer you away from buying unnecessary items.

The next task in hand is to contact all the companies that you owe money too and work out a suitable payment plan. If you explain your situation, some companies, like debt free direct are only too happy to help you it this means that they will get their money returned. This could be in the form of giving your a few months breathing space or by allowing you to pay a smaller amount for an agreed time limit. If things get really tough you could look into taking out an IVA.

The most important thing is not to panic. You are not the only person in this situation and there are probably many people who are in more debt than you are. You will have to make adjustments in your lifestyle, but by taking the bull by the horns and starting a payment strategy, you have made the most important step to becoming debt free.