Debt can be intimidating. It can create chaos in your financial life. A good and adequate loan structure should be planned to keep up with your financial health.

Almost every third person in the UK uses his credit card to fund his necessities and luxury. We have started seeing credit cards as a convenient payment method, and it doesn’t even cross our minds that we are constantly engaging with debt.

Some of us are compulsive debtors, while others can manage their finances quite well. People who get into debt quite often can do with some help in managing their finances. You can opt for various options if you want to stop falling into unnecessary unsecured debt.

Types Of Unsecured Debt

Unsecured and Secured Debt

Unsecured debt can be availed without any mortgage. You have to make regular payments to the lender along with the monthly interest payments. Unsecured debt can be of various types.

  1. Personal loans
  2. Bank overdrafts
  3. Credit cards
  4. Payday loans
  5. Store cards
  6. Bill arrears

Various other unsecured loans are available from different lenders. Unsecured loans have higher interest rates, as there is no physical collateral involved.

For availing these loans, you must have a good credit score. Therefore, it is important to get an understanding of how to build your credit score. A good score can be maintained by making your loan and interest payments on time and also staying off huge debts.

Compulsive Debtors

With a constant urge to fulfil demands and improve lifestyle, most of us have become compulsive debtors. Debt is like a loop: if you don’t break away from it, you might be stuck there forever!

People who are compulsive debtors keep on borrowing as they have started to consider debt as an income replacement source. They tend to unintentionally downplay the consequences of accumulating too much debt.

Compulsive debtors are mostly compulsive spenders. This habit is financially unhealthy. People who always feel dissatisfied with their economic status are likely to become compulsive debtors and spenders.

Debtors Anonymous

Debtors Anonymous help people to come out of the vicious cycle of debt. Also, they help out people with low earnings to manage their finances well. If you have drained yourself by staying in the debt trap for long, it is time for you to seek help from Debtors Anonymous.

Debtors Anonymous (DA) is a 12-step programme for people who want to put a stop to their debts. DA will guide you through the process of improving your spending habits and overall financial health while you make payments towards your debt.

How Does Debtors Anonymous Work?

To come out of the debt cycle, you should stop availing any new unsecured debt. These are some of the ways that DA can help you recover from financial loss and falling into a debt trap.

Attend The Meetings

Debtors Anonymous meetings have people who share their own experiences. You can take inspiration from other people and improve your position. These meetings would give out tips which would help you to come out of your debt situation.

Debtors Anonymous - group meeting
Debtors Anonymous – A group meeting in progress (N4M photos)

Maintain Proper Records

It is important to observe your income sources and expenditures. Track all your finances and maintain records of all your debts and savings. This will help you plan a reasonable budget and sort any fiscal complications.

Get A Sponsor

A sponsor can help you out in recovering from a debt situation. A sponsor is generally a debtor who is recovering from a similar crisis. He can help you out with his own experiences and advice, which helped him come out of the crisis.

Join Different Pressure Relief Groups

Debtors Anonymous organises various pressure relief groups and meetings to help your cause. It consists of a few members from the Debtors Anonymous community and some recovering debtors. These debtors have not indulged in availing any unsecured loans for at least 90 days.

Pressure Relief Group
A Pressure Relief Group in session – Debtors Anonymous (N4M Photos)

Various meetings are conducted to keep a check on the compulsive debtors. By attending these meetings, you can garner insight into debt management techniques and formulate an effective spending plan.

Spending Plans

These plans help you with categorising essentials and luxuries. Also, it includes your income, expenditure, savings and debts. With a proper spending plan, you can focus on increasing your income and reducing your expenditures.

Building An Action Plan

The execution of the learnings from relief groups and meetings is quite important. Therefore, an action plan is required to tackle debt step by step. Your plan should include a step-by-step list of saving goals.

Assigning A Point Of Contact

DA members can maintain contact with the help of a POC via e-mails, phone calls, etc. when they feel especially troubled or have a strong urge to indulge in debt.

Familiarising Yourself With The Literature

It is important to know the terminology used in these groups for better clarity. DA literature has to be studied to understand the importance of compulsive spending. Most words are taken up from Alcoholics Anonymous and are used to present debt as an addiction.


People are made aware of the dangers of compulsive debt by using various debt advertisements and presenting methods to tackle them. Use these resources to educate yourself. The only way to build up a productive or healthy desire to tackle your financial problems is to recognise the need for change.

Business Meets

DA conducts various business meetings each month. People participate in these programmes to feel self-sufficient. By managing these programmes, you can foster a sense of responsibility that will give you the confidence to be free of the tethers of debt.

Staying Low-Key And Anonymous

As the name suggests, DA is careful to anonymise the information conveyed or stories shared by its members. The level of trust in DA meetings will grant you a safe space that’s free of judgment.


It’s better to take control of things at first. Debt should be reduced as it impacts your financial well-being. Debtors Anonymous helps compulsive debtors or any other person who is finding it difficult to manage his or her expenses.

Also, if you need money for any unavoidable expenses, you can avail 0 interest loans by maintaining a good credit score.

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