How Did I Get Here?

The first thing that clients need to realise is that anyone can fall into the trap of accumulating secured and unsecured debt. Having debt is nothing to feel ashamed of, as with the help of DebtBusters ability to provide substantial advice on how to manage debt, as well as a positive attitude, you’ll be on your way to a debt-free life in no time!

People generally fall into one of two categories when it comes to experiencing debt problems:

1. Overnight

Clients experience a rapid onset of financial difficulties and debt problems, due to an accumulation of unfortunate circumstances, such as job loss, divorce, gambling and severe medical issues resulting in high bills and the inability to work.

2. Slow and steady

Clients slowly accrue secured and unsecured debt over an extended period of time, by casually using credit cards for small purchases that they don’t have the cash to pay for.

Alternatively, clients occasionally make larger purchases such as new vehicles or a mortgage and fall into debt due to the occurrence of unexpected expenses or changes in income that make it impossible to meet debt commitments that were previously manageable.

Debt falls into two categories:

1. Unavoidable Debt

In certain instances, it is impossible for individuals to avoid debt due to differing circumstances. As mentioned above, there are times when an unexpected change causes difficulties in paying off old debt commitments.

2. Avoidable Debt:

For every that has accrued unavoidable debts, there is likely to be 10 who are in over their heads in debt that could have been avoided. These are people who have relied on credit cards to stretch their income a little further, but over time with the help of excessive credit card interest rates and late fee charges, found that they were suddenly having difficulty keeping up with all of their expenses. Many people use credit when they don’t have cash available and don’t take the time to consider how long it will take to pay off that impulse purchase.

Whether you are in debt because of unavoidable situations or avoidable circumstances DebtBusters has a solution for your individual set of circumstances.

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