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When burying your head in the sand won't make it go away

As more and more people across the UK continue to fall further and further into debt and further and further into financial difficulties, the vast majority are more than happy to put their head in the sand and hope everything works out in the end. However, such is the prolonged recession in the UK that the longer you leave your financial troubles to fester and build up, eventually they will drag you down. So what can you do?

As you become aware that you are heading towards financial troubles you should firstly approach your creditors and advise them of your potential problems and that you may wish to take some kind of payment holiday or else extend your payment terms. However, if this particular option proves unsuccessful then you may need to take professional advice regarding a possible readjustment of your budget, any cost savings you can make and a professional repayment plan which will be sent to your creditors. This is in effect an IVA, or in Scotland it is known as a Trust Deed, and effectively lets your creditors know you are in financial trouble but willing to pay as much as you can.

If your situation is worse and you are unable to pay anything towards your debts then you may need to look toward bankruptcy. While the word bankruptcy would put the fear of God into many people across the UK it is a illegally binding option which you need to consider if your circumstances merit this. It is not the coward's way out, it is not the easy way out but for many people either an IVA or bankruptcy is the only reasonable option to take pressure off them in the short to medium term and also in many cases reduce the pressure on their private lives and their health.

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