A recent report by ClearDebt, a Company that provides debt-free solutions:
Income-to-debt ratio of 12,000 borrowers across the country and found that more than 60 per cent of those in severe financial difficulty are under 35.
The debt counselors give the following tips to the debtors to free themselves from the debt burden:
1. Preparation of budget, for both debt-payment and carrying out daily finances.
2. Payment of loan as per priority.
3. Use a zero APR credit card to pay-off your credit card debt.
4. Go for debt-counseling, when debt-burden goes out of control.
Richard Mason, of Moneysupermarket.com puts it right when he says:
Don’t kid yourself that the odd missed credit card repayment does not matter. People who default on credit agreements can find themselves unable to get the most competitive mortgage in their thirties. You must be credit worthy in your first phase of financial borrowings to be trustd with other loans in future.
