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I was thinking about how many stories I had read about people becoming stronger after going broke. It’s a credit to the resilience of human beings really. When you are at your darkest and in your blue funk depression, you find a way to lift yourself out of it and take another tentative step forward. The problem that many people have with going broke is that they see no way out of the bind.

It’s all to do with pride and ego, which are related but not the same. Imagine you have decided to build your own business based on a good idea. Your friends are sceptical and that in itself is both a challenge and a negative factor you have to overcome. When others don’t have confidence in you, there are two choices. Agree with them and give up. Or, disagree with them and attack the job at hand with renewed vigour.

Along with the stories of people becoming stronger there are as many, if not more, about those that cannot see a clear exit path and end their life or just walk out on life and end up as one of the homeless, sleeping on the street and eking out an existence. 35 – 40 years ago, you were considered the lowest of the low if you went bankrupt. It was a real cross you had to bear and it was a black mark you wore for the rest of your life. These days, you read about people declaring bankruptcy as if they were announcing a special event, a party! It’s even fashionable in some circles!

The truth is, there is an answer. And it’s one that enables you to take stock of your financial situation, pay your debts to the best of your ability and get on with your life. Bankruptcy is a poor option for both you and your creditors. A trust deed is the better option and if you find yourself in a dire financial situation, then get advice and learn as much as you can about this solution. There are some qualifying conditions, such as having an amount of debt that is considered too much for you to pay back fully. That starting amount is £5000.

By the way, you don’t have to be running your own company to go broke, or be in a position where you can’t meet your repayment obligations. Ordinary folk on wages can also find themselves in a bad financial situation due to any amount of circumstances. Heavy medical bills, an unfortunate accident and insufficient insurance can contribute to a sudden hit on savings and available money you might have. The main thing is not to get overly desperate without at least talking to a financial advisor and they can help you to look at some different ways to assist you with the problem. Debt management plans and arrangements with creditors can be made that enables you to maintain some pride and not think of situations as being hopeless.

Andy McGowan
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