Changes in your financial situation
Most people run into difficulties with their finances at some point in their lives, either because they've overestimated what they can reasonably afford or because a change in circumstances has affected their ability to manage their repayments.
Taking on debt commitments relies on you being able to continue making payments - whatever life throws at you. Events beyond your control can stretch your budget and make what seemed like a reasonable amount of debt become unmanageable.
Do something about it
If you think that you may be at risk, it's important to take action quickly. What's more, when you make a list of your income and expenditure commitments, you'll see exactly where your money goes and feel more in control.
The next part of this guide explains how to set out a realistic Budget Plan based on what you are actually spending now. Once you've got this information you can start to make some decisions about your situation, and what you need to do about it.
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Next Section: Taking stock of your situation
Your debts may become a problem if:
- You're using credit for things you used to pay cash for.
- You're paying one credit card off with another.
- You're waiting for a final demand before paying.
- You're falling behind with your repayments.