There are many ways in which you could deal with being in debt. So we’ve pulled out five of the best tips which should help you when you’re trying to manage your finances.
If you’re worried about debt get financial advice
Most important of all? Get advice. If you’re uncertain or finding things difficult always seek advice. The earlier you can do it the more time you have to address any issues and potentially get out of debt quicker. There are plenty of avenues you could explore for this but make sure you use an authorised source of debt and financial advice – even if it isn’t through Harrington Brooks.
Open your mail and don’t ignore the phone
Regardless of how tough it may be don’t ignore the letters, e-mails and phone calls. Keeping track of your finances is important if you want to get them back on track. By monitoring your spending you can see where you may be overspending. You might even be getting charged more that you should be. So it’s always worth checking your bills and answering calls – as your bank may even be trying to warn you of potential fraud on your account.
There are various budget planners and tools that you can use on your tablet or phone which will help you to plan your spending each month – just search in the app store. During some times of the year your budget may change (such as winter or summer). You could use any savings you make to budget on presents for Christmas or savings for a rainy day. Being in control of your finances will help you to budget better and hopefully avoid being in debt in the future. Most banks will also have a notification service that texts you if your account gets to a certain level. So it may be worth looking in to this to help you keep track of your spending.
Prioritise your debts
Some debts may seem more important than others because they shout louder than the rest. But you should be aware of which debts to pay first. Payments such as rent/ mortgage, utility bills (gas and electric) and council tax should be paid off first. By not paying these you could face serious consequences such as losing your home, having utilities cut off or even imprisonment. Then concentrate on the bills which are costing you most with interest and fees.
Create a savings buffer
The cost of some things such as fuel are getting lower. When this happens use any surplus cash you have and put it in an instant access savings account. Or if you get more cash through overtime or a windfall do the same. Having a financial buffer or savings will help you cope when there is an unexpected cost such as an MOT bill or boiler breakdown. You could even cut back on some luxuries such as takeaways and branded products to save pounds each year. If you manage to save £5 a month that’s £60 in a year saved.
If you’re currently worried about your finances, have unsecured debts from personal borrowing and would like to speak confidentially to an advisor who can talk to you about the benefits and considerations of a range of debt solutions and personal insolvency solutions, then please get in touch by calling 0800 048 1764. You can also visit www.harringtonbrooks.co.uk to request a call back at a time to suit you. By requesting a call, you are under no obligation to use our services. Harrington Brooks provide solutions to customers living in England, Scotland and Wales.
Should you choose to undertake a plan or arrangement, there may be consequences to consider, including restrictions on future expenditure, lending and on your ability to obtain further or future credit. Fees, terms and conditions apply. For further information and advice please visit www.harringtonbrooks.co.uk.
The services that we provide may be available at no cost from other government and charity based providers. Further information can be obtained from the Money Advice Service at https://www.moneyadviceservice.org.uk/en/articles/where-to-go-to-get-free-debt-advice