Life After Debt: Five best things to look forward to

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When you enter a formal debt solution you may feel like someone pressed the pause button on your life but it is important to remember that it will end and how much better your life will be when you are solvent again. We’ve compiled a list of the top five things people value when they have successfully tackled unaffordable debt.

Once you’ve committed to a solution you may feel you are expending all your energy on paying down your debt, making long term planning an unaffordable luxury. People who have struggled with unaffordable debt for years grow used to living day-to-day simply to put food on the table and keep a roof over their heads.

Resolving debt expands your horizons

As a result, although entering a debt solution is a hugely positive step, people’s horizons may shift only slightly further out to the day they make their last payment. That could be three years for a Debt Relief Notice (DRN) five for a Debt Settlement Arrangement (DSA) and six years for a Personal Insolvency Arrangement (PIA).

Before you enter a formal debt solution there are important issues that must be discussed fully with your Personal Insolvency Practitioner (PIP) who has a responsibility to safeguard your interests, make sure you enter an appropriate solution and fully understand the consequences. It is not a step that can be missed out but it should not prevent you from seeing the bigger picture.

Psychological hurdles overcome

People sometimes worry at the outset about their names being on a public register. The facts of the matter are that it is not an easy process for anyone to access the information – they would need to know personal details of the individuals concerned.

Also, entering a debt solution demonstrates a serious commitment to tackling debt and puts you in a far better position to rebuild your credit score than if you had ignored the problem

Goal

Every monthly payment takes you closer to the finishing line.. While everyone’s experience is different over our many years of helping thousands of people to resolve their debt worries one of the most striking and immediate effects is the relief that people have when they know there is a solution that they can work to.

Five top things to look forward to:

1. Peace of mind

Don’t under-estimate the relief that comes from having successfully dealt with serious debt. There are commonly multiple beneficial effects relating to self-esteem, sleep patterns, emotional and physical health and personal relationships. An academic study into how credit and debt issues affect relationships between married couples found that debt creates unease, tension, mistrust and is a major source of conflict. Resolving it reduces or eliminates these negative elements.

2. Sense of achievement

People often feel ashamed and suffer low self-esteem when they are in serious debt, regardless of the circumstances that led to their problems - which may have involved factors beyond their control such as losing their job or falling ill. Successfully overcoming debt delivers a sense of empowerment and achievement. People feel proud to have made their lives better for themselves and their families.

3. Regaining control of your money

Being in a formal debt solution means working  to a monthly household budget that covers all aspects of spending from clothes to food and utility bills. It is part of the process of calculating how much disposable income you have each month to pay to Creditors. It feels good to regain control of your own money. When you complete a debt solution, the disposable income that previously went to Creditors is now in your pocket and you get to decide how to spend it.

4. Making plans for the future 

People in debt are often forced to put life plans on hold as they cannot fund the things they want to do from setting up a business, to taking a holiday, finding a home with a partner, getting married or having children. Once you have paid off your debts, you will have extra money in your pocket to save for special occasions or towards achieving a personal life goal.

5. Having some fun 

Getting out of debt and staying out of debt it is not about a lifetime of deprivation. Years of sticking to a budget can help people to manage their money better so they can enjoy it more.  You will have an opportunity for the first time in years to use your disposable income to treat yourself and your family and enjoy the fun things in life.