According to the Department of
Monetary Consulting, 10% of the population could be suffering in silence with
serious money problems, with young adults, people who rent their homes, large
families and single parents significantly greater risk.
If you are trapped in a spiral of
credit cards overdrawn, unpaid rent, bills and more, there are many ways you
can deal with this.
Sheila Wheeler, director of Debt Helpline
on Money Advice Service, said: "Friends and family want to help and
support you.
How to get out of debt
- Know where you stand
Gather all your statements: credit
cards, loans, store cards, bank.
How much do you owe to each one? What are your monthly repayments?
How much interest are you paying?
Add them together so you know the total amount that you owe.
This can be a sobering moment, as
many people don’t look at their total debt amount. This will make you realize
what you need to pay each month to clear off your debts.
- Devise a budget plan and stick to it
List all your sources of income:
salary, pension, benefits, interest on savings or investments, in one column,
and list all your expenditure in another column next to it.
Make sure you include all expenses
including; mortgage / rent, municipal taxes, energy bills, work rates and food,
insurance to car taxes, phone bills, TV packets, gym membership, vacations,
clothes and birthdays.
Review all your expenses and see if
you can cut out any of them, reduce or change to better offers.
Calculate what you have left over after
paying all your bills and expenses so you can see what you have left to pay the
debt.
Look for ways to earn a little extra
money, like whipping things you do not use or need.
- Don’t try tackling it all at once
Focus on debt with interest rate
higher.
That is what is costing more, and
once you have ordered, release the greatest amount of cash for everything else
goes well. Set up direct debits for other debts to ensure pay at least the
minimum each month and on time.
Do not get slapped by late fees, you
are paying a huge amount of interest.
- Try to switch expensive debts
There are more than 63 billion dues
on credit cards in the United Kingdom, an average of £2,469 per household,
according to Money Charity.
If you have a balance of £2,000 on a
credit card at an average market rate of 18.9% APR, and you only pay the
minimum balance of 2.5% each month, it will take 26 years to settle and cost
you £2,976 in interest.
Change that balance to a 0% balance
transfer agreement, say the 36-month MBNA card, and pay £48 per month and
settle the debt in three years.
More info about Free Debt Advice contact us.More info about Free Debt Advice contact us.
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