8 pieces of advice you should NOT give to people in debt

It is easy to share your thoughts and ideas to help people in debt. Unfortunately, some tips aren’t useful and can do more harm than good.

Whether you got into money trouble through a job loss or even if you maxed your credit card out through frivolous spending, being in debt feels rubbish.

No matter how you got into the position you are in the cycle of trying to get out of it.

When you’re in a financial pickle, you may well talk to family or friends. They may seem to be well-wishers, but sometimes their advice is not that great.

I have been given much advice over the years. I have also heard some real corkers of debt tips that really shouldn’t have been given.

If you’re in debt and people are talking to you about how to help, be aware of what they may say and cautious about following their suggestions.

If you are debt-free or have never been in debt, then you may not know or have forgotten what it’s really like.

So, if you are looking to speak to someone about money, just make sure you don’t say things like…

1. Don’t get in debt in the first place

Erm, well, yes!

This is such an obvious statement, and one I’ve questioned myself over many times, as I’m guessing have other people who are in debt.

The thing is, it’s too late to look back and change the past.

Anyone in debt needs to stop wishing they could change prior mistakes and, instead, find ways to clear money owed in a way they can manage.

Yes, it’s great to use lessons from the past to prevent mistakes from happening again, but just telling someone that “you shouldn’t have done it” is neither helpful nor practical.

2. If you ignore it, it goes away

This could possibly be one of the worst things to tell someone in debt.

Burying your head in the sand will not make the problem go away. It will actually make things worse.

Ignoring debt will see things escalate in terms of the amount of money you owe. Late payment charges and more interest will be applied.

Leaving things even longer will mean the creditor may pass your case to a solicitor to debt management company.

They could add even more charges and pursue a CCJ against you. Again, this would cost more and really impact your credit file.

While dealing with debt head-on may be scary at first, it is a surefire way to ensure it goes away properly.

3. Use a quick fix

It’s an old saying, but I will say it anyway – if it sounds too good to be true, then it probably is.

Anyone promising that they can write off all your debt in a matter of minutes or that you can use IVA loopholes to get out of debt is not telling the whole truth.

In truth, you will need to pay back the money you owe. It will take a lot of time, and there isn’t a way to magically erase it all.

4. Get in more debt to pay off your old debt

If you have debt that you have not managed properly, you can’t likely take our new credit.

The idea of putting all your debts into one payment may make things easier to manage, but you are entering another credit agreement that may have an even higher interest rate.

This may take even longer to pay off.

Unless you have a good hold of your debts, this is not a good option to look at.

5. You don’t need advice

Yeah, cause we are all geniuses at dealing with finances alone – but then the debt wouldn’t have been there in the first place!

While it’s easy to think it’s your mess so you can clear it up, there are many organisations that can give you free, impartial, confidential and sound advice to sort your situation out.

You don’t need to do everything they suggest or even follow them to the letter, but getting some plans of action from debt experts is a brilliant place to start.

When we started out debt battle years ago, we were told it would be better to go bankrupt.

This was not something we wanted to do. Even though it would take longer, we wanted to clear the money we owed.

While we didn’t take their first suggestion, we took lots of other debt advice that has been invaluable.

6. Go on, buy it, it won’t hurt

Famous last words!

Peer pressure can be one of the reasons people get into debt in the first place.

“Just put it on your credit card” is a term very easily said, very easily done, but very hard to come back from. Revolving credit and interest rates can trap people in a cycle of debt.

The problem is that the person being told to buy on credit may not have said they’re in debt in the first place, so it can be difficult.

7. Use that fella from the telly

That “fella” on the TV or in a magazine may suggest he can give you debt advice, but he wants you to pay for it.

While the advice you get may be legitimate, in part, the debt company he works for may not be telling you everything. They will be profiting from the actions you take with them.

Debt management plans you set up with a private company have admin fees added on.

This means you have to pay back your debt plus a fee to the company.

There are a wide variety of things that can be done to clear debt.

The best place to start when you need to talk to someone is a free debt charity.

They will give free impartial advice and won’t even ask you to pay. Plus, if you set up a plan with a charity, you will get the debt cleared sooner.

8. Borrow some money from my mate

Borrowing money from a mate may end up being quite a bad move.

First off, who is this mate? Are they willing to lend money interest-free? Or could this person actually be slightly dodgy and be a loan shark?

Borrowing money in an informal way comes with all sorts of other problems. While it may make one debt disappear, you are left with another shadow that lives on your doorstep.