The first rule regarding dealing with your debts is to first face up to them.
Admitting you’re in trouble, outlining exactly what you owe and wanting to clear them is the first step towards becoming debt free.
Debt is an awful thing which grows and grows over time, becoming bigger and scarier the more we ignore it.
It can be hugely stressful time, but please do not worry too much, there are people and ways which will help you to realise you’re not alone and will set you on the right path towards cleaning your debts.
Here are some of our top tips for dealing with debt
1. Face the Facts
As stated, admitting that you’re in debt and that you need help is the first step towards becoming debt free.
For many, debts creep up on them, first of all being small loans and as interest rates increase and you become more and more in debt you’re suddenly in big trouble. When you admit to yourself that your debts are a problem, then you can start to tackle the next steps.
2. Talk About Your Debts
Once you have admitted that your debts are a problem, you can start to talk about them.
Whether you choose to confide in a friend, family member or a complete stranger at a debt helpline, it all helps to take the weight solely off your shoulders and help you with some rational advice.
You need to get professional debt advice from a trusted source who will be able to talk you through your options and help you deal with the situation.
3. Outline Your Finances
If you haven’t already, you now need to outline your personal cash flow so your incomings, outgoings and everything else including any other debts. This will help you to see exactly what debts you have and how manageable it is.
There are a number of apps, websites and excel spreadsheets which will really help you to calculate everything clearly so you can see how much you can realistically afford to pay off each month. There is no point dedicating hundreds of pounds each month to pay off your debts if it’s going to affect you paying your rent, bills and overall getting into more debt.
4. Take Out Another Credit Card
This may seem like terrible advice, but if your debt is on an expensive credit card, see if you can transfer your debt onto a 0% credit card.
These amazing cards will eliminate existing charges and usually offer 0% for a fixed amount of time, typically 6 – 12 months which if you’ve been getting stung by interest rates is an amazing relief.
To make the most of the deal you should try to pay off as much as possible because the 0% won’t last forever.
5. Address the Stress
Dealing with debts can cause an untold amount of stress and you need to address this is order to preserve your health.
You should always try and stay healthy and fit to keep your mind and body healthy even when you may be worrying about debts because being ill will only add to your worries and from there it’s a vicious cycle.
Always eat well and healthy, exercise regularly, drink lots of water, take the time to relax and speak to someone if it is ever getting too much.
Have you ever overcome debt? Let us know your experiences by getting in touch.