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There will be many people heading into 2008 looking for debt advice to help fix their serious financial problems. It’s important to remember that before you even start shopping around for debt solutions, you need to unsure you employ the right mindset.

First things first, stop spending. You can’t possibly hope to fix your problems if you’re still recklessly throwing away money. Don’t just say you’re going to fix your finances, do it. The best possible debt advice anyone can offer you is to get serious about your finances. Without the right attitude, you’ve got no chance of getting out of the red.

The first decisive action you should take is to sit down with a pen and paper or in front of a computer and work out your outgoings against what you’re earning. Analyse your consumer debts like credit cards and loans. These additional expenses are what can really suffocate you when you have to make monthly repayments on top of your mortgage and other household bills.

By carrying out this preliminary work you’ll have a clear picture not only of how serious your debt is, but what chance you have of paying all your bills without needing the help of third parties or professional advice.

Let’s start by analysing what to do with small amounts of debt. A small amount of debt like ?000 on credit and store cards might not seem small to those who are struggling to make the repayments, but in the grand scheme it can be controlled relatively easily.

In terms of debt help advice, a consolidation loan can be of great benefit if you have arrears from more than one lender, i.e. multiple credit cards. A debt consolidation loan can be obtained through your bank or a number of other lenders. The benefit of this is that you can roll up all of your debts into one affordable repayment and save massive amounts of money in interest. Make sure you sit down and do all the relevant working out before diving into an agreement though.

Another option with credit cards, is to do a balance transfer to another credit card with a 0% finance offer. This means that when you make a payment on your debt, it chops away what you owe without having to pay any extra costs. There are lots of 0% finance introductory offers so shop around to find the best deal, and make sure to look out for hidden fees.

If you have more serious debts of around fifteen thousand pounds or more that you can’t possibly afford to pay back, then you might need to seek professional debt help advice sooner rather than later. Once more though, make sure you have all the information you can possibly get your hands on, so you end up with an agreement that suits you and not the company providing the agreement.

Lots of debt advice companies will try and persuade you into getting an IVA or Individual Voluntary Arrangement because it can net them a massive sum of money in commission for setting up the agreement. An IVA slices off a massive portion of your debt, leaving you to make repayments on the remaining amount. This can be an incredibly attractive proposition to many people, but can put red tape on your credit rating for a long time to come. However, an IVA is a realistic alternative to bankruptcy and might just save you having to give up your home, so is certainly worth considering.

Speaking of bankruptcy, it can seem a horrible proposition but if your finances are in a dire situation it can often be the only way out. On the plus side, bankruptcy can lift a terrific burden from your shoulders and the procedure is certainly not as severe as it once was.

If you have serious debt problems, then get professional advice as soon as you possibly can. Taking decisive action to fix your finances and approaching everything with a pro-active attitude will give you the best possible chance of finishing 2008 with much healthier finances.

Thomas Baugh offers more skilled debt advice at the Debt Help Site.

Article Author :Thomas_Baugh

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Tags: Bankruptcy, cards, credit cards, Debt Consolidation, debt consolidation loan, Debt Problems, debts, irs, Loans, repayment