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At some time or other, everyone spends more money than they should. It can be because of lavish over-spending, or simply because of unseen circumstances like unemployment or the break-up of a marriage. Most often though, it is not quite as extreme; Your best friends wedding, a new baby in the family or a weekend away for your anniversary are all occasions where we stretch the budget a little too far a times. There is no reason to beat yourself up about it - these are the times when our overdrafts & credit cards come in handy. Remember, they are not evil!

The problems come when it happens again and again. When, instead of paying back that debt, you just keep adding to it. Another meal out. That pair of designer shoes. A new CD. Yes, it doesn’t sound much, but add them all together and you can soon be looking at a ?000 credit card bill. “But, it’ll be ok…I can pay it back over the next few months. No need to worry.”

But what happens if you suddenly lose your job? That’s right, nobody knows what lies around the next corner & allowing yourself to get into a ‘little bit of debt’ in the confidence that you will be able to pay it back is foolish to say the least. Always expect the unexpected.

Some reasons we get into debt include:

?Redundancy / Unemployment
?Illness
?Divorce / Break-up of a marriage
?Failure of a business
?Poor economy / high inflation
?Gambling
?Excessive spending

The top 5 are out of our control, so to re-emphasise - don’t assume your financial situation will always be the same. It could change tomorrow, and not for the better. If you cannot afford to save, the least you should do is stay out of debt.

If you are in debt and things seem pretty bad at the moment, don’t worry. There is plenty of help available. You may even be getting hassled by your creditors at this moment. Again, don’t worry. It isn’t nice, but remember - you can’t go to prison for not paying your debts (with the exception of Crown debts - e.g. Council Tax). For detailed information on the consequences of not paying certain debts & how to prioritise your debts, read the DIY Debt Management article.

If you are in serious debt you can take advantage of a number of solutions that can help you to become debt free. These include IVAs, Debt Management, Debt Consolidation, Remortgages & Secured / Unsecured loans. Whatever your financial situation there is a debt solution to suit you.

You may also want to consider contacting your creditors personally. It may seem like a daunting task, but many people have been surprised at how much they achieved without the help of a debt solutions company. Believe it or not, creditors do not want to take court action. If you are honest about your situation & show a willingness to pay back what you owe, you will go a long way.

Not sure how to talk to your creditors? Don’t worry. Find out how by reading the Negotiating With Creditors article.

Read more about the various debt solutions available & other alternatives at the free debt advice resource.

Article Author :Cameron_Daniel

Tags: tax, remortgages, financial situation, Loans, credit cards

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Tags: cards, credit cards, Debt Consolidation, debt management, debts, financial situation, Loans, remortgages, tax