If you are in debt, what you do now will help you to get out of debt; it could be as simple as Debt Counselling with a Breathe Financial consultant. However, if you are in too much debt there are a few things that you should NOT do or STOP doing immediately.
Here is a brief list of things you should NOT do when you are in debt.
Give creditors your bank account information
Never share your banking details with creditors, especially if you're feeling pressured.
Ignore creditors' letters
While it can be stressful, ignoring correspondence only makes the situation worse.
Fail to reduce monthly expenditures
Creating a budget and cutting unnecessary expenses is essential when dealing with debt.
Increase your monthly expenditures
Now is not the time to take on additional financial commitments or increase spending.
Take poor advice from unqualified individuals/companies who use high pressured sales techniques
Seek advice from reputable, accredited financial advisors who specialize in debt management.
Continue to pay the minimum amount due each month, try to over pay to reduce the balance
Paying only the minimum will keep you in debt longer and cost significantly more in interest.
Make late payments
Late payments can damage your credit score and lead to additional fees.
Additional Important Advice
Further, do NOT give out your banking information, either on the phone or if a Debt Collector attends your property. You are not obligated.
Even if your creditor is persistent, do NOT offer to send a post-dated cheque. Many creditors may tell you they will not post the cheque until the date written on the cheque but often they do, to ensure that the funds are removed from your account on the specified date.
However, if you have already given out your information or sent a post-dated cheque you will need to keep tabs on your account, make a record of what is coming out of your bank account as you do not need additional charges from your bank as well as your creditors.
Remember, authorised or even worse unauthorised overdraft charges only compound matters.
Finally, if you notice charges on your bank statement that you did not authorise or you deem unfair, call your bank immediately!
How We Can Help
Here at Breathe Financial we can assist you, you do not need to suffer alone any longer – Seek help before it's too late.
Our team of experienced financial consultants can provide customised advice for your specific situation, helping you navigate the path to financial freedom.