At some point or another, we all get into debt. Whether you took out a payday loan, are struggling with an overdraft or have catalog accounts, don’t worry. Things might seem bad now, but you can sort things out.
Being in debt can be scary, but it doesn’t have to be. You might feel like you are all alone, but believe it or not, more than half the population has debts to deal with. So try not to worry, debt affects a lot more people than you might think.
The important thing to realize when it comes to debts is that the sooner you deal with them, the better. Don’t bury your head in the sand, as you will only make things worse for yourself. It might be scary, but as soon as you can, you need to start dealing with your debt.
To help you take the first steps to deal with this, here are a few tips that you might find useful:
Yes, seeing your debts on paper is scary, but it’s necessary. Sit down and write a list of everything that you owe, from late rent to energy bills, write every last penny down.
As well as writing a list of everything that you owe, all put the names of the creditors down and the deadline for paying each debt off. Writing it all down will make it much easier for you to work out how to get on top of it – trust us on this.
Use your list of debts to put them in order – write them out in order or importance as well as in order of deadlines. This will allow you to cross reference each debt and work out which ones should be a priority.
The debts that should take priority are the ones that could result in serious action if not paid. For instance, any debts that could cause you to be sent to court, lose your home, or be arrested should be seen as being a priority.
Write down how much you earn each month and what you spend money on, include everything from rent to clothes shopping. Once you have written your spending down, you will then find it easier to locate the areas where you could save money.
As well as writing down how much you earn each month, also write down how much you have spare – if any. Look at your spending and work out where you could save money – perhaps you could cut back on certain spending?
Get in touch with a debt advice service, to discuss your debts and get some independent advice. It might be hard admitting that you need help, but it’s an important step as it can help you get on the right track.
A debt advice service will be able to talk you through the options for dealing with debt and can advise you on what would be best for you. When it comes to dealing with debt, the best way to determine the best option for you is by talking to a specialist debt advisor.
For instance, one way to deal with debt is to contact your creditors and tell them that you are struggling and need help. Or, another way to deal with debt is to contact a debt consolidation company and get all your debts in one place. Having all your debts in one place can make it easier for you to keep on top of them and get them paid off.
Once you have worked out the best option for getting your debt under control, the next step is to start paying them off. Once you have a repayment plan in place, it is crucial that you stick to it so that you get things paid off as quickly as possible.
Debt can be scary, but it’s important that you don’t bury your head in the sand. If you are in debt, don’t panic, the best thing you can do is seek advice and take steps to start clearing your debts.