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What Are Your Options If You Can’t Afford To Pay Your Debts?

It’s so easy to let your finances get on top of you, but it’s a lot harder to climb out of that hole once you’re in it. So many of us will find ourselves in financial difficulty at some point in our lives and it can have a big impact. Money problems can cause relationship issues and they will certainly affect your credit, which makes it harder to get mortgages or finance a car in the future. If you have debts piling up and you cannot afford to pay them, you’re in big trouble. Every time you default on those debts, your credit score is getting worse, and eventually, your creditors will send bailiffs in to claim back what is owed. You don’t want that, so what can you do? These are your options when you can’t afford to pay your debts. 

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Set Up A Payment Plan 

The first thing you need to do is call up your creditors and explain the situation to them. In a lot of cases, they will agree to set up a payment plan with you. They would rather be getting something back and even if the debt is paid back over a longer period, it gets them off your back. Look over your finances and see how much you can reasonably afford to pay back each month after you have covered all of your other expenses. Go to them with this figure and see what they say. A lot of the time they will agree to a payment plan but if they don’t, you will have to look into other options. 

Get Another Loan 

This doesn’t sound like the best course of action but sometimes, it is a good strategy. If you cannot afford to pay back your debts right now, you need to buy yourself some time. If you can take out another loan to cover your existing debts, you have a bit more time to get your finances in order. If you are in a bind, it’s a good idea to start looking for an instant loan that will cover those debts. However, it’s important to remember that this can be a dangerous strategy and you might end up back where you started if you don’t pay this new loan back on time. As soon as you take out that loan, you need to get your finances in order so you can afford the repayments. 

Earn Some More Money 

It all boils down to not having enough money, so if you can find ways to boost your earnings, you will be able to afford the repayments. There are all sorts of ways that you can make extra cash on the side. If you have a car, you can earn money from it by doing delivery driver or taxi jobs. You could look for remote jobs online that you can do from home or try to find a part time job somewhere. It’s going to take some hard work but once your debts are dealt with, you can go back to normal. 

When you are unable to pay your debts, the natural reaction is to panic. But you do still have options, so don’t worry just yet. 

 

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Alice Instone-Brewer

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