What should individuals do if they have unpaid debts?

Individuals with unpaid debts should consider setting up a repayment plan because this approach allows them to systematically address their financial obligations in a manageable way. A repayment plan typically involves assessing one's total debt, income, and expenses to create a customized strategy for paying off debts over time. This helps in avoiding further penalties and potential legal actions from creditors, while also providing the debtor with a clear path to financial recovery.

Implementing a repayment plan can have additional benefits, such as improving credit scores over time as payments are made consistently. It also fosters a responsible financial attitude, encouraging individuals to take control of their finances rather than neglecting their debts, which could lead to more significant problems down the line. This practical and proactive approach can ultimately lead to greater financial stability and peace of mind.