Tackle your debt worries

Debt. A constant concern for many of us, keeping us awake at night worrying about how to make ends meet. This has never been more evident than over the last 18 months during the pandemic. People put on furlough, incomes reduced, job losses and redundancies, all whilst the cost of living is going up.

So many companies with massive marketing budgets are advertising financial loans and products on TV, radio and social media, promising that they will provide the solutions you are looking for. The reality is often very different and you can find yourself in financial difficulties if you make the wrong choice when borrowing.

You are probably aware that in recent months there has been a lot of concern from consumer groups about the sheer number of financial companies such as Klarna, FuturePay and PayPal Credit that have sprung up and who are collaborating with lots of retailers to promote offers of ‘buy now pay later’ or ‘pay in 3 easy installments’. These initiatives are specifically designed to encourage you to spend money without the need to pay at the time of purchase. The risk of building up large amounts of debt using these companies is extremely high and very quickly you can find yourself with a debt that is spiraling out of control and has become unaffordable.

If you have fallen into this trap please don’t bury your head in the sand; think about how to start tackling the debt as soon as possible. One option to consider is taking out a debt consolidation loan with us where you will only have one amount to pay each month and at a lower interest rate. With a credit union you only pay interest on the reducing balance and not only will you see your balance going down each month, there will be an actual end date when you will be debt free. This is a much better option than making lots of minimum payments which are likely to be only just covering the interest on the outstanding balances.

Another option is to think about getting specialist help. There are many organisations that are able to advise and help you get into a better position. We have some information on our website of various organisations who can help you if you feel you need more specialist debt advice.

Please don’t let your circumstances get out of control. It really does help to talk to someone if you are having financial difficulties.

If you would like to apply for a debt consolidation loan please contact us for more information on info@manchestercreditunion.co.uk.