Many people are in debt and most of the time, it is simply because they have been through difficult times, not because they “have a problem with money.” I recently read about a woman who was left with the expenses of raising children without the help of her father who had left. She also had her mother and brother living with her, who were unemployed and also had to support them financially. She barely had enough money for food and essentials, so over the years she had racked up debt through numerous ‘credit card increase limit offers’ and deals she had been involved in.
She was scared. He had no money to pay lawyers or debt consultants for their advice. She was scared to answer the phone for fear of so many people she owed money to and she even wondered if she could be jailed for her debts.
Sounds familiar?
Well, the good news is that there is no such thing as a “debtors’ prison.” It would not be in the interest of society to imprison people unfortunately. These are matters of the civil courts (if it comes to that) rather than the criminal jurisdiction. This does not mean that you will not receive a court judgment against you and that a bailiff will not come knocking on the door one day, wanting to claim as much of your possessions as he can to offset the debt. But there are also ways around this.
If your credit history is bad and you have financial problems, here are some tips that can help.
First, compile a list of all the bills and expenses you have. If you have credit card debt, summarize your balance, minimum payment amount, and interest charges.
Now divide your list of expenses into essential and non-essential payments. “Essential” means survival necessities such as food, electricity, and rent or mortgage, as the case may be.
Prioritize the “essentials” to pay first. Anything that remains can be distributed among non-essential items. If a debt collector tries to harass you, don’t even think about using your survival money to satisfy him. The law is on your side here. If debt collectors turn hostile or harass you, they are breaking the law.
From now on, only spend money on essential things. If you have other people you care for besides the children, they should be asked to contribute something to your living expenses. Or if not, perhaps they have a skill that they can use to help save money (for example, doing repairs, mending clothes, running errands)? They can even turn a hobby into a small business to make money, to supplement the family income.
Debt problems can be very stressful and, if left unresolved, make life hell. But you can take control by making a plan and educating yourself on how the law works to protect your rights. Knowledge is power!
