Ways to sort out your debt and why it is worth doing

In the UK, debt is a big issue. The average household has over £15,000 in debts. So, fees, interest and other repayment costs swallow up a significant percentage of everyone’s income. Understandably, being in this much debt is worrying.

How to eventually get out of debt

Fortunately, help is at hand. It is far easier to find firms that will help ordinary people to restructure their debt and come up with an effective plan to pay it off. You could try Creditfix their team has more than 70-years combined experience of helping people to pay down their debt. They explain all of the options, including debt consolidation, relief orders, IVAs, bankruptcy, and many others. Importantly, they continue to work with you until your debt is paid off.

Identify what you owe

Recognising the amount of debt you have is the first step. Once you know the size of the problem you can tackle it effectively. Hiding from your debt and applying for a new credit card to get you through the next 6 months is understandably tempting. But, it is not wise. Your debt just rises and becomes more difficult to manage.

Seek out sound advice

Once you know how much you need to pay back you can work out how to pay it off. It may seem impossible at first. But, do not worry even if your current debts exceed your income there are still ways to deal with this situation. 

Renegotiating your debt or getting a consolidation loan that reduces your monthly payments are two possibilities. But, you need to be careful about how you do this. It is time-consuming and complex. So, it is wise to seek advice and support from a trusted source. At a time like this, you really need the help of an independent financial advisor. 

Stop spending so much

The other step you must take is to bring your spending under control. Sit down and work out how much you spend during an average month. Then factor in other expenses like holidays, gifts and nights out.

Once you have done that, you should also explore ways of reducing that cost. For example, switching to a lower cost energy provider and learning how to use couponing to reduce your food bill. This article outlines 40 easy ways to reduce your day-to-day living costs. 

Start using budgeting software or apps

As soon as you can, download a spending app to your phone and start using it. This will help you to keep track of what you are spending and will act as a reminder not to impulse buy. 

Once you have identified how you are going to pay off your debt and started doing so, you will feel much better. Your stress levels will drop and you will have the skills you need to avoid getting into debt again.

Enjoy the results of your hard work

In time, you will have a lot more spare money available to save, which means you can create a more secure future for you and your family. Plus, none of your hard earned income will be given away in the form of interest payments. Instead, you get to use every penny you earn to look after yourself and your family.

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