It is that time of year again. The Christmas spending bonanza that has turned into a nightmare as the January bills seemingly pour through the letterbox. Now, some people appear to have no problem with large amounts of debt. They simply repay what is owed as and when it is due. Others, however, are not so fortunate and find that their borrowing has slowly crept up and become unmanageable. It is just so easy to take on new debt to fund old debt repayments which will spiral as a consequence.

Commenting, Gerald Irwin of Sutton Coldfield based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said, “A common reaction to the realisation that outgoings are running ahead of income is to ignore the problem in the vain hope that somehow the debts will disappear. This is known as ‘head in the sand’ syndrome. A natural human response but it will not solve the problem. It is vital to face the music and start working out exactly what is owed. The next step is to prioritise payments and ruthlessly cut back on over-spending and talk to creditors. If payments have been missed or are likely to be missed, it is essential to warn of any temporary financial blip.”

With a six week month in prospect, many people will be thinking of taking out a payday loan but, in reality they are not the best way to resolve debt problems. For many people payday loans often become a negative experience exacerbating financial difficulties. Mr. Irwin believes that having a financial buffer is crucial to weathering periods of difficulty. For those struggling up to payday becomes a regular occurrence, seeking financial advice should become a priority over short term high interest credit.

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About the author

Gerald Irwin

Gerald Irwin is founder and director of Sutton Coldfield-based licensed insolvency practitioners and business advisers, Irwin Insolvency. He specialises in corporate recovery, insolvency,
 rescue and turnaround.