There is nothing more terrifying than looking at a final demand letter and realising that you won’t be able to pay the debt in time. The important thing to realise is that no matter what the amount is that you owe, there is always a way to deal with the problem. Nothing is ever so bad that there isn’t a way out. It may not be an easy way out, but there is always a way out of any problem – that’s a promise.
So with that in mind, here are four things that you need to do if you have a debt that you just can’t afford to pay. And no, one of them is not panicking – there’s no need for any panicking!
- Take a deep breath
The first thing that you need to do is take a deep breath. Yes, it’s scary having a debt that you can’t afford to pay, but if you panic, you are going to make things much worse for yourself. Take the time to calm down before you do anything. Otherwise, you could end up doing something that you will come to regret, such as panicking and applying for a high-interest payday loan. Take a few deep breaths – inhale, hold it for three seconds, and then exhale, and you should feel a little better.
- Call the company
Your first port of call should be calling the company to see if there is anything that they can do to help. This might be daunting, but it’s important to contact them and explain how stuck you are and why you can’t afford to pay. Most companies are willing to offer payment plans to customers who can’t pay, so it’s always worth asking. If it’s already been passed onto debt collectors, ask for their number and call them. You should also be able to set up a payment plan with them.
- Research your options
If the company that you owe the money to aren’t sympathetic or willing to help in any way, it’s important to research your options. You need to know where you stand in regards to the law and what help is available to you. You will probably come across the term ‘insolvency’ while you’re researching, which is a type of bankruptcy. If you can’t pay and aren’t able to get help from any debt charities, it might be worth contacting local insolvency practitioners. This will allow you to talk to a specialist and get a better idea of how the process works.
- Don’t bury your head in the sand
The most important thing is that no matter what happens, don’t bury your head in the sand. It might feel like if you ignore the problem, it will go away, but that’s not the case. The longer you ignore a debt for, the worse the situation will get. Take a proactive approach to your financial situation and ensure that you’re up to date with everything that’s happening. It might be scary, but you’ll feel better for it.
Not being able to pay a debt is terrifying, but what it’s important to remember is that there is always a way out.