Dealing with your debts may not be the easiest thing, especially in the current economic climate where more and more people are struggling to deal with their debts and make ends meet on a daily basis. It is important that you take action now and ensure that you commit to dealing with your finances and taking greater control over where you money is going.
This means getting a budget, and one that is realistic. Even worse than not budgeting is having a budget that you cannot stick to, as this will provide you with no motivation to continue to deal with your finances if you feel as though it will automatically fail. But, when done right, budgeting is the first port of call to try and get your debt management under control and start dealing with your debts.
Take control of your money by beginning to track everything you are spending your hard-earned cash on. The easiest way to do this is to keep a file of everything that you spend and write down each transaction, or ensure that you keep a receipt of every purchase that you make. This may sound like a low-tech solution to dealing with your debts but it can be quite an effective method, as long as you ensure that you include every single thing.
On top of this, make sure that you take advantage of online banking. Regularly seeing your bank statements can help you see where you are spending you money, meaning that you can easily see the places where you need to cut back on.
Dealing with your debts can include creating a household budget. Ensure that you set aside enough money to meet your essential priority debts, such as mortgage payment and utilities. Also, if your finances can stretch to it, it makes sense to have a little bit of money in a reserve in case of any unforeseen financial emergencies.
Of course, dealing with your debts may mean that you take a multi-attack method. If budgeting doesn’t help because you do not have enough money to cover your unsecured debt repayments, you may wish to see what options there are to reduce the amount that you need to repay to your debt. One Advice are here to help, and there are a number of debt solutions available so we are confident we can find an ideal debt solution for almost any circumstances, for example:
Debt Management Plan: This allows you to make one single payment to your debt each month without the need to take out any further loans. The new repayment that you are making to your debt management plan should be lower than your current payments, meaning that you may find dealing with your debts easier on a monthly basis. It is likely that making reduced payments to your debt means it will take you longer to become debt free, but you will find your debt less of a struggle in the short term.
This type of plan is not the only way to go about dealing with your debts, as there are a number of debt solutions and the right one for you is dependant on your individual circumstances. Always ensure that you get professional debt advice, as this can really help get your finances back on track and allow you to regain control of your money.