Recent statistics would suggest not, as borrowing has continued to climb during 2013 amid reports of a thriving and more prosperous economy. The cumulative total of credit card debt has now reached a staggering £38.7 billion in the UK, while consumers are even borrowing at a higher rate than during the pre-recession years of 2007 and 2008. As those who already shoulder the crippling burden of household debt will testify, however, it is only a matter of time before the economic recovery falters and traps a new breed of consumers in a terrifying cycle.
How to Emerge from the Wreckage of Debt
It is important to consider those already encumbered by debt, as they can set an example for others to follow in the quest to live a more prosperous and frugal life. Consider the following steps towards eradicating debt and building a more enjoyable future: –
 Manage your Expectations and Know when to Cut Loss Making Assets: While it is important to adopt a positive outlook when facing up to your debt liability, you must also manage your expectations in line with those of your creditors. There are some debts that are irretrievable, and these must be written off and consigned to history so that you can begin to rebuild your credit score.
 Maintain One Open Line of Credit: If you goal is to both minimise debt and build towards you future, then it is important to maintain at least one open line of credit. While you should look to close the majority of your accounts once the balances have been settled, you should keep a single, low interest credit card that has a small minimum balance. This will enable you to execute regular but manageable credit transactions, which are settled each month in a timely manner. This type of positive interaction is key, especially as you look to rebuild your damaged credit score.
 Remain Open and Up-Front with Creditors: The cycle of debt is an interesting one, as it not only encourages individuals to borrow more but it also creates feelings of depression and anxiety that force consumers to bury their heads in the sand. This only exacerbates the situation, as creditors are likely to add administration fees and missed payment charges onto the account, alongside steadily accumulating interest. You can avoid this simply by communicating with creditors on a regular basis, as you explain your circumstances and intentions going forward. Through the art of negotiation, you may even be able to freeze interest repayments or arrange a period of inactivity on the account while you organise your finances.
