As Insolvency Practitioners, we’re always highlighting the importance of seeking advice early. This is due to the fact that there are usually more options available to financially distressed businesses and individuals the earlier they seek advice.

Although probably an even bigger driver is the negative effect ‘fear of the unknown’ has on your decision making skills.

Uncertainty of future outcomes causes stress and anxiety, which in turn causes people to make bad decisions.

There has been much research undertaken in this area where this is proven to be the case.

At times of financial distress, it is more important than ever to make good decisions. It therefore follows, if you know the answers to the various ‘what if’ scenarios, you are able to plan better and more importantly, be less stressed and anxious, which in turn will allow you to make better decisions.

I’ve seen this in practice. I have often met clients at initial meetings where they look physically stressed and anxious. Following our meeting, they are visibly more relaxed and genuinely happier. No magic money trees were involved – they simply know their options and have a plan to address their situation.

Knowing what’s out there – whether good or bad – is better than not knowing at all. Hence, no news is bad news.

 

Author:

Thank you to Andreas at Kallis and Co for providing this blog post.

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