I spent several years working as an insolvency advisor for people whose debt had become so unmanageable that they had to file for bankruptcy, and it would always surprise me at how long some of my clients ignored their growing debts before seeking help.
Often this was due to two reasons:
- They were too embarrassed about their situation and refused to get help.
- They were waiting in hope that their financial situation would improve by itself and in the meantime continued to borrow, in order to maintain repayments, as they viewed that as a short-term solution.
It’s often the case that some wait until the creditors are breathing down their necks and sending over bailiffs before truly realizing the gravity of the situation – and by then there’s little that can be done that doesn’t require drastic action.
William Penn said, “Time is what we want most, but what we use worst”, and when we’re talking about dealing with debt I couldn’t agree more. Part of managing your debt is coming to terms with your situation and being honest with yourself. It’s not an easy thing to do and it takes courage.
Waiting not only delays the inevitable, but makes the prospect of quickly recovering your former credit status next to impossible. The implications of this can be felt for many years afterwards.
The infographic below from theWalletDoctor.com highlights the typical cycle that the majority of debtors go through. Over 63% of people in debt don’t seek help within adequate time and furthermore, many don’t realize that the help they needed was available to them for free the whole time.