Debt is always stressful and often damaging. Not only to one’s credit score as it easily spills over into personal and family life. There is no way around it, but there are ways to get through it. In fact, finding the right debt solutions could feel like a fresh start.
With uncertain times ahead, for those already struggling with finances, now is the time to find out what debt solutions there are available.
Tough times are coming
With the global economy in a “synchronised slowdown” and uncertainty about Brexit, many of my clients who have been struggling to survive, admit that even a small change in the economy can lead to their financial collapse. And the strain of the situation takes a massive emotional toll, affecting their mental health and personal relations.
Recently, I have noticed more business owners and individuals contacting me for contingency planning, ahead of potential insolvency problems. Sadly, far too often clients leave it at least 12 months too late to seek help.
Time is of the essence
The sooner the client looks for help, the greater the chances of saving their business and minimising the impact on their mental health.
If the company can’t pay its debts and is facing closure, one of the following options may be suitable: Administration, Creditors’ Voluntary Liquidation (CVL), or Compulsory Winding-Up.
And for businesses about to run out of money, informal arrangement with creditors may also be suitable.
Whatever the client’s financial situation, it is important that they fully understand the options available to them.
Financial problem doesn’t mean personal failure
And yet too many people carry it all on one’s shoulders, trying to cope alone. Since one in two adults with debt suffering from mental health issues, the need for a conversation about the emotional burden of debt has never been stronger.
Knowing the best ways to pay off one’s debts is important, but what is also crucial is to talk about the feelings associated with debt. Without the stigma of shame.
Remember, you only need to ask
In two weeks’ time we will be joining forces with FSB, a leading charity and financial experts to talk about the stigma of debt and answer as many questions as possible in order to help you deal with clients with problem-debt in a holistic way. Join the debate. Find out more -> here.