Money Problems

How to deal with money problems

People struggling with debt or in need of financial guidance need not suffer in silence. Money Advice Direct is a national telephone helpline for people with debt problems in England, Scotland, Northern Ireland and Wales. The service is confidential and without obligation.

Money Advice Direct provides advice to its callers and also produces money problem help to back this up.

Money Advice Direct can also assist callers with the setting up of Debt Management Plans, IVA – Individual Voluntary Arrangements and Bankruptcy.

Causes of Money Problems in the UK

• Debt is one of the biggest problems with money
• People end up with money problems because they continue to spend more money than they have.
• Money causes many temptations such as expensive cars or designer clothes.
• We can be tempted to borrow more money than they can afford to pay back
• 'Peer pressure' also causes us to want more money. We have all heard of the saying, “ keeping up with Jones’s”
• People end up seeking money problem help because they start gambling in the hope of more money. Gambling debt a big problem in the UK.
• The problem of money is it can cause worry and leave you in serious debt.

The wider issues surrounding money problem help

Money problem help is not just a financial issue; it can also be the cause of stress and depression and can lead to relationship breakdown or even loss of work. The advice team at Money Advice Direct carry out ongoing research on the need for money problem help and as a result have produced the following guide to avoid getting in to debt and keeping debt under control.

The figures are frightening. Nearly four out of 10 people are concerned about the size of their debts and their ability to repay them, while the number of people resorting to bankruptcy and individual voluntary agreements (IVAs) is on an upward climb.

As the number of people struggling to repay their borrowing increases, and the credit crunch continues to put a squeeze on consumers, debt advisers are reporting a new type of client - the middle income middle classes.

Money Problem Help Top Tips

• Work out all your income and expenses, and look at whether you can cut out any over spending on luxury goods.
• Try and stick to your budget. This may mean buying less expensive goods, or even staying in on a Saturday night.
• Set up standing orders and direct so you do not miss payments on your debts. Missed payments can harm your credit rating.
• Set up a savings account if you want save for birthdays, religious holidays or special occasions.
• Try to save money in separate savings account in case of unforeseen events such as loss of job or serious illness.
• Only buy products or services of you can afford them. Don’t be tempted to use credit cards for anything other than an emergency.
• Always pay you credit card balances every month in full. Otherwise you will have to pay up 20% interest.
• Don’t be ashamed if you can’t give money to charity to help others. You can be charitable in other ways such as giving clothes to charity shops or volunteering.
• If you are have to take out new credit for important items such as a car or kitchen appliances, make sure you build them into your budget.
• If you really need to buy an expensive item, shop around for “Interest-free credit” offers. Many high street stores now offer this.
• Always shop around for the least expensive prices. Use the internet to compare prices. Try and avoid impulse buying, as this can be expensive.
• If money is a problem, don’t give up. There are lots of places to access confidential and non-judgemental advice.

Are you among those people who are worried about the amount of debt they are in? Do you struggle to meet your repayments or are uncertain what to do next? Whatever your concerns, we may be able to help you find an answer for you by calling 0800 074 6918.

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