- HOW CAN I GET OUT OF DEBT ?
If your debts are causing you stress and worry there are a number of ways to get out of debt. Once you take control of your debt it will give you peace of mind.
The first step is to acknowledge your debts , it is often difficult to admit that you are struggling but once you have taken a realistic look at your debt situation you will find it easier to take a more positive approach.
Start by listing your debts so you have a true picture of what you owe, then write down your income and expenditure. This will enable you to see where your money is being spent each month. Take a long hard look at your spending habits, It is often the small amounts that we spend that go unnoticed and by writing these down you will have a realistic view of how you spend your money and you may realise that some of the money that you spend each day on small items could easily be avoided.
Once you have a true picture of your income and expenditure each month you will be able to see how much money you have left over to pay off your debts, it will also show you where you may be able to make spending cuts.
Once you have a clear picture of your debt, you may wish to seek professional debt advice. A debt advisor will look at your financial statement and give you advice on all the options open to you.
Many debt firms offer free advice and can help negotiate with creditors in order to work out the best scheme for paying off your debt, such as an iva which offers a structured plan of payment to your creditors over a fixed period of time.
- HOW DO I MANAGE MY DEBT
In order to manage your debt you must first obtain a true picture of your debt together with your income and expenditure. Once you have this information there are a number of steps that can be taken, you can contact your creditors and inform them that you are
Experiencing problems, try and make regular payments to your creditors even if the amount is small, they will see that you are trying to sort out your debt and may even give you some leeway until you sort out a long term repayment strategy.
You can also manage your debt by making cut backs to your outgoings wherever possible. Look at cutting back on food costs, take your lunch to work instead of buying it each day, prepare food from scratch rather than buying ready made meals. Look at your utility suppliers and switch to the cheapest supplier, switch your credit cards to obtain the best interest rate.
Maximise your income, make sure you are paying the right income tax, check whether you are entitled to any benefits such as Child Tax Credit/Working Tax credit, council tax relief and housing benefit . Check with the Dept of Work and Pensions in order to see whether you are entitled to anything.
The most important thing you can do to help you get out of debt is seek advice.
