Debt in its very own right will always exist. From the moment we are born until the day we pass away. (this is not allowing for a situation where debt will be passed down to another absorbing the commitment.)
For whatever reason it remains that in order to simply exist in this life we automatically are born into debt, a social construct created to provide services in exchange for compensation. From basic shelter, health service, and food being the three top basic essential needs for survival.
So in order to survive we watch, we follow, we try to learn the best tactics to survive within the system we have been born in to. It is true to say that the system that seems to have success will be less effected by debt than those who are using a less effective system.
However it remains everyone is effected by debt, the levels and reasons may vary, but the effect in those people and others around them will be felt.
Those on the bottom earning tariffs will find themselves struggling to manage all the demands of just trying to survive, let alone having experiences, being free enough to express themselves within their homes, the way they dress, interacting with others around them socially? (enter credit).
You work hard, you try to do your best everyday to put your finest foot forward, you find yourself certain you deserve the same nice things as those around you. And that is how we all feel, no shame in that. We work hard to be the best we can with what we are given, educate ourselves and find better systems to work our way up the ladder, with hope of freeing ourselves of the daily grind of just getting by.
So we get an invitation, a pre approved credit card? Immediately if your life has been anything like mine! Get a glimmer of hope, you read the basics, lets be honest none of us read the small print! All looks easy enough, £500, low repayments, I can afford that, and with (special occasion) coming up this will really help, no more stressful nights for me.
And just like that, bang! Here we go. The fact you found this blog tells me you know the rest of the story. Everything has got out of hand, there has been illness, or loss of work, leading to less income so then your struggling to just survive!
It is a messy endless cycle, that if you have no understanding or knowledge about can become a very overwhelming and scary place to be.
I have been there myself, it is the very reason I sit here today, learning, gathering all the tools and information available to me in the hope it can be passed on for others who want to learn.
Being in a situation that hinders your basic needs being met, shelter, health, food and water, has a detrimental effect on a person and the people around them. The stress and fear people experience when they find themselves in unmanageable, or what feels to be unmanageable debt. To the point it starts to effect the basic needs, You will see that person go into pure panic survival mode. They will be looking for any solution to make the threat stop or be managed, as they have no idea how to do this for themselves, and most of the time feel they have no power to do so!
They then seek help, stumbling upon companies selling debt plans such as IVA(individual voluntary arrangements). At first all seems great, the companies stop hassling for money, and rather than having to find hundreds a month to try and pay, its under £100 per month, 5 years of that and then all the debt will be gone, phew!
Then to only discover that due to personal reasons you couldn't afford the repayments and so the IVA fails, then the letters come back!
All of a sudden you discover you paid £100 per month for the last 3 years but your original debts that were in the IVA have not changed much at all?? The realisation dawns that you have not been slitting that £100 between your debts each month, that actually around 80% of what you paid over those three years was fees to the IVA company, so you are now three years behind, you paid all that money and nothing has changed at all!
You now have to deal with these companies? But how?
This is a reality for many people and it has a massive effect on their mental health, which then leads to more problems, they find themselves in an endless never ending cycle and can not see a way out. This leads to much more devastating situations that had the people understood how things within insolvency and finances, even the basics they stand a much better chance of navigating debt, knowing how to work with debt,(its not going anywhere, may as well learn how to use it to your advantage).
Understanding your rights, what is required of you by law, following the rules of how the system works and what you can do. What powers or responsibilities do the credit companies have? As you can see once you understand how things work within your system you have more power to navigate, and improve your own situation.
One of my reasons for creating Financial First Aid LTD, was to inform others that they to can learn how to navigate debt, understand everyone's part, and feel empowered to manage their own so that they can stabilise the foundation of their life by providing their basic rights with ease.
Bottom line, debt exists it will always exist. It is how you choose to deal with it that counts. There are ways of managing debt and getting free from most of it, and we can work with you to achieve that, taking your power back could save you thousands of pounds and take years off your debt struggles, leaving you a blank foundation to start working, with your basic needs being stable, you can free up time to get back to living your life!
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