Many of us will come into contact with debt at some point in our lives – I know I have. For the most part, we will make repayments without any issues, getting by each day as we chip away at what we owe, but some debt can mount up to an unmanageable amount and cause serious financial problems.
Struggling with debt?
If you are struggling to pay off your outstanding debts, here are some ways you can get back on track and on the path to enjoying financial stability again:
Speaking to a debt adviser about your next steps is a great method of getting back on track. A debt adviser can go through your finances with you, helping you to work out what you can afford to repay each month, and they can also recommend debt solutions if your debt is becoming too much of a struggle. There are numerous debt management companies out there offering free and impartial advice when dealing with debt. Reach out to a free company and learn about the help and support available.
Choose a debt management solution
Once a debt adviser has looked at your finances they will make some recommendations, and this might include applying for a debt solution. The solution recommended will depend on what you owe and the type of debt you have. For example, those struggling with high debt levels might benefit from an Individual Voluntary Arrangement, as this involves debt write off after an agreed period of time.
Set a budget
In order to regain control of your finances you will need to look at your finances and work out what you have going out and when. Write down a list of your expenses and ensure you put enough money aside to cover these household bills. Any money left over is the amount you have to make last until your next payday. Having a budget in place not only helps you make your payments on time but also highlights how much you can afford to spend so you don’t go into your overdraft or have to rely on credit.
Some credit may be unavoidable, such as a mortgage or even a car finance deal, but as you get back on track take steps to stop using credit. For example cancel your credit cards and stop using your overdraft. If the option isn’t there, you won’t find yourself dipping into credit for purchases and you’ll start living by your budget, as intended.
Don’t go it alone
It’s important you have support while getting back on track financially. Speak to family and friends about your situation and consider their advice on what you’re struggling with. Perhaps they’ve been through the same situation and can offer some insight.