Lottery luck

Did you know that your chances of winning the lottery each time you play are 14million to one, yet according to a YouGov survey, more than a quarter of Brits are relying on winning the lottery to help improve their financial situation!

With the continued recession and the ongoing threat of redundancy across many industries, more and more people are finding themselves with debt worries and it can be all too easy to take a knee jerk reaction and make the wrong choices to try to get your debt cleared.

You need to be aware that there are some roads you probably should not go down in your attempts to escape the clutches of debt.  We’ve listed a few things you shouldn’t do:

Don’t run away

You can’t run away from your debts.  Even if you leave the country for a while and return, you’ll soon be traced through national insurance numbers or credit checks.

Don’t automatically take out another loan

Depending on your circumstances, further borrowing may be unlikely to solve the situation.  It may seem easy to consolidate your debt and pay just one reduced monthly repayment but it can come at a price – some consolidation loans can have high interest rates over many years with your home as security.

Don’t pay off just one creditor

It is important you deal with your creditors equally, don’t pay off one in full and not the others.  By law you are not allowed to prefer one creditor over another.

Don’t think that your creditors won’t be sympathetic

It is worth getting in touch with your creditors and asking them if you can come to some alternative repayment arrangement.  Most creditors will accept alternative arrangements for a short time.

Don’t think bankruptcy is your only option

There are a range of debt solutions which may be available to you, for example, a Protected Trust Deed, IVA or a Debt Management Plan.

Don’t be embarrassed

Speak to family or friends about your debt worries.  They may be able to help you by lending money or even purchasing assets such as your home.

Don’t rely on the lottery

Need we say more….

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