Collate all of your unsecured accounts and list them down, one by one. Total the indebtedness. Do not include debt due on credit or store cards or any other form of unsecured debt.

Ascertain the household income and deduct all of your expenses including car and mortgage or rental payments – include all expenses including gym, school fees, council rates and allow for known expected increases.

Deduct the known expenses from the income and arrive at your disposable income.

Arrive at how much is left over to be used to service payment of all unsecured debt.

If the amount left is insufficient to service the indebtedness then you are insolvent.

If there is sufficient to service the debts then you should adopt a plan to do just that and budget a payment method.

You know you’re in trouble when demands and summons’ start arriving or lenders halt, even temporarily, your credit facilities.

SEEK HELP FROM A PROFESSIONAL DEBT HELP ADVISOR