Nobody likes to admit that they have money problems, sometimes not even to themselves. You feel ashamed, angry or helpless and do not want people to know about it. You can accrue debts in very different ways. There is a long history to many situations of debt. Many debtors have their heads in the sand for a long time. They stop opening letters that they suspect contain reminders. They don't collect registered mail from the post office and so on. The mountain of debt generally tends to keep growing during this time.

It is imperative to face your situation head-on. Discuss your predicament with an advisor. If you do not do anything about your debts, they will keep piling. This may result in attachments of earnings for years. It can also be very damaging to your personal relationships. Last but not the least, constant stress is harmful to your health.

Asking for help and advice

Therefore, contact a debt-counselling service or your local Citizens Advice Bureau as early as possible. Have the courage to look for support. These services are generally free of charge. The advisors will help you to find ways out of this unpleasant situation.

Take care not to trust anyone who promises to take away all your worries straight away. There are charlatans who publicise their services promising everything under the sun but they are the ones who are really thinking of themselves.

Finding a global solution

There are no quick fixes. It normally takes three to six months to clarify the situation properly. However, the debt-counselling service will work with you to ensure that your situation does not worsen during this time. After the end of the clarification period, they will tell you how you should go about managing your debt. If there is money available at the end of the month to reduce your debts, they will try to find a solution to reorganise your debts. If there are no prospects of reorganising your debts, the counselling service will suggest that you consider bankruptcy. If the spiral of debt continues despite opting for bankruptcy, the counselling service will advise you to take the matter to social services instead of the bankruptcy courts.

The counselling service does not just do calculations. It attaches a great deal of importance to ascertaining why the debt occurred. You can only start to reorganise debts if these causes are tackled. Therefore, you have to be willing to discuss addiction problems, psychological and other health problems, relationship issues, etc. If necessary, the counselling service will direct you towards an organisation that can help you and your family to deal with the problem.

Further Information

Association for Debt Recapitalization Berne

Self-help: debts toolbox

Cantonal debt advisory services