Finding yourself in debt can be a frightening experience. You can feel like there is no escape, as almost daily, the total cost of your debt (due to interest) increases and repayment demands arrive. However, there are some actions that you can take to try and stem the flow, with the ultimate aim of becoming debt-free:
Face Up To Your Debts!
1. Write out a list of every debt that you have.
2. Calculate what your normal monthly outgoings are on a monthly basis, and see if there is any remainder so that you can make additional payments to bring down your debt quicker. If not, look at your outgoings and see what "luxuries" you can do without.
3. When demands for payment arrive, whatever you do - don't sweep them under the carpet. If you are in difficulties, contact the companies involved and explain your predicament. They may be able to help.
Work out in which order you should clear your debts
Before deciding which debt to pay first, look at the likelihood of how severe your creditor would be with you. Your top priority should be debts that would affect your home, ie your mortgage, rent, council tax etc. Switch to Get a Better Rate
With all of your debts, check your APR and then, check if you can switch and save. For example,. remortgaging your home can, over the course of the mortgage, save you thousands! Where to Get Advice
Citizens Advice Bureaux offers help and arranges free legal advice.
The National Debtline gives free help and an information pack. For Wales and England, call 0808 808 4000. In Scotland, it's 0141 572 9273. Article added July 14th 2005 |
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