How to manage your debt – If you’re struggling to repay debts that have spiralled out of control and are feeling anxious and depressed with nowhere to turn, then you’re not alone.
No matter what you think, debt problems are solvable. The solution may not be quick and easy but there’s always a way … and the earlier you deal with debt, the better.
Many people are frightened to open their mail in case it’s a bill or an account. Some switch off their phones to try and avoid contact with their creditors. This is not a good idea. If you’re in debt, you need to face up to the problem and deal with it.
Here are ten useful tips to help you:
- Draw up a list of all your expenses
- Write down how much money you owe
- Decide which debts should be paid off first
- Work out how much you can afford to pay
- Contact your creditors and tell them how much you can afford to pay
- Talk to a debt solutions company – they can put a plan together and work with your creditors on your behalf
- Talk to your bank about a Consolidation Loan – this type of loan bundles together all your debts into one. It has a fixed interest rate and a fixed monthly repayment
- Keep making payments on time and at the agreed rate
- Stay in touch with creditors to show that you intend to settle the debt
- If your financial circumstances improve, increase the amount you are repaying