When it is a problem.
WHAT TO DO FIRST
List everything: who, how much, what rate, what payment, when.
WHY
Most people in difficulty do not have the full picture.
WHAT TO ESTABLISH
Total owed Total monthly obligation Which costs the most
WHAT TO PRIORITISE
Anything secured against assets you need Anything with severe consequences for default The most expensive, after that
WHY SECURED DEBT FIRST
The consequence is losing the asset.
WHAT TO DO ABOUT MULTIPLE EXPENSIVE DEBTS
Address the most expensive first, while maintaining minimums on the rest.
WHAT TO DO IF PAYMENTS ARE UNAFFORDABLE
Contact the lender before missing a payment.
WHY BEFORE
Lenders have more options for a borrower who engages early.
WHAT TO PROPOSE
A realistic arrangement.
WHY REALISTIC
Breaking a second arrangement removes goodwill entirely.
WHAT TO GET
Any agreement in writing.
WHAT TO AVOID
Borrowing to pay debt Ignoring communications Informal arrangements with no record
WHAT TO BE CAUTIOUS OF
Anyone charging fees to negotiate on your behalf.
WHAT TO DO ABOUT BUSINESS DEBT PERSONALLY GUARANTEED
Understand that it is your liability, regardless of the business structure.
WHY THAT MATTERS
Many owners believe a company protects them when they have signed a guarantee.
WHAT TO CHECK
Whether you have given any.
WHAT TO RECORD
Every payment and communication.
