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The reality of festivity induced debt

As soon as all the celebrations are over and the New Year has dawned, reality becomes a problem for a lot of people. This is particularly true for people who let their control slip over the festive season with their spending. Everyone does it a bit; you spend a bit more on presents and yummy food than you told yourself you would. The biggest problem comes for people who indulged over Christmas, but have no way to pay off the debt. It's far more common than most people realise, judging by the number of articles about the financial aftermath of Christmas.

I had no idea that so many people get themselves into financial trouble they couldn't handle until I started reading all the information the BBC is dishing out. I would have thought that they would publish this information before Christmas as a warning to people instead of waiting till after the fact to say I told you so. The facts that the articles are showing are a dose of hard reality after all the lights and fluffiness of Christmas. The facts are a major indictment of irresponsible spenders, as well as irresponsible lenders.

People who get themselves into debt are mostly those who have no solid financial plan to adhere to, but they have to get the money from somewhere. Many lenders dispense money after doing a few cursory checks; after all it is the borrower's problem to worry about repayments. Most people wouldn't think of lending out a potentially harmful item without checking if the borrower knew how to handle it, but many lenders never bother to check if the borrowers have the ability to handle the money they receive.

This is one are where I believe our client, National Guarantee, is one or more steps ahead of their competition. When they consider lending money, they can sit with the potential borrower and work out a financial plan with them. This can help people to use the money as they see fit, but also ensure that they have a set plan to repay the debt. Often they can sit with those people who have had financial problems and actively help those people to cope with the situation and get rid of the debts.

Most people believe that if they just borrow more money they can pay back their creditors, but often this can land you in more problems. Financial problems, like other major problems, can only be sorted out if you have a solid plan and you stick to it. The biggest problem comes when you have had a very bad financial patch and have been saddled with CCJs or have had to declare bankruptcy. This bad credit rating can prevent many high street lenders from approving a loan due to the high risk involved for them.

With financial problems, you need a financial advisor to help you formulate a plan that you can stick to which will work for you. A financial advisor's knowledge of the financial market and possible future trends means that they can help you to make informed choices. This involves tailoring any loans to your circumstances, both current and future, regardless of whether it's a homeowner's loan, a mortgage or a straightforward loan. On their website National Guarantee has a financial journal which has reports from mortgage advisors about actual cases they have dealt with. This can give people a better idea of how they approach different types of financial problems and it also demonstrates their ability to construct different financial plans to help a person eradicate their debt, depending on their circumstances.

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