Reasons For Debt
There are many reasons why people get into debt. You might have lost your job, your incomes reduced, or your spending has gotten out of control. No matter the reason, it’s important not to bury your head in the sand because it won’t just disappear, you need to face your fears and start tackling your money troubles. Here’s some tips to help.
Gather Information About Your Debts
First things first, collect all the information about your debts, such as bills and statements. This might include your mortgage/rent arrears, credit card debt, council tax arrears, loans or money you’ve borrowed from friends and families.
Write down all the details – who you owe the money to, how much you owe, when you last made a payment, what steps the creditor has taken to get the money back, for example taking you to court.
You can get a credit report to show what money you’ve borrowed and what payments you’ve made. There are many companies who offer this for free.
Sort Out Your Spending
Can you reduce your regular living costs? Why not create a budget that shows your income and spending. Include all your bills so you can see how much you have left to put towards paying off your debts.
You might be able to save money on various bills by switching to a better deal or you might be entitled to a discount. This could include your energy bills, council tax, benefits or a cheaper phone/tv deal. Make sure to check you are getting the best option for you.
Don’t forgot to look at any non-essential costs that you might be able to cut back on to reduce your spending. Could you try switching to shop brands or reduce the amount you spend on clothing and footwear, sports or hobbies?
For those debts you can pay, make sure to set up direct debits to make sure you don’t miss any payments.
More Than One Debt?
It’s essential you deal with the most important debts first. This can include things like your rent or mortgage, gas and electricity and council tax. For other debts such as credit cards or loans or overdrafts, you can often ask to make lower payments, but you will need to check this with the companies you owe money to.
Not sure how much to pay? Citizens Advice has helpful information on how to work out how much to pay each creditor.
Best Solution For You
If you have a lot of debt or are struggling to pay even the minimum amount to loans or credit cards, there are still options available to help.
It’s important to talk to the companies you have debts with to let them know you are struggling with repayments and to discuss what options are available.
You could consider a debt management plan, which is an agreement between you and your creditors to pay your debts. You’d make regular payments to a debt management company, and then this company would share the money out between your creditors.
Do You Own A Property? Selling Your Home Can Be The Answer To Getting Rid Of Your Money Problems
If you own a house, Kingdom Property Buyers could be another option when looking to eliminate your debt. This is a big decision to make but if you have somewhere you can move to selling your home could be an option for you to access the funds and get you back on a clean slate. We are a Fife based company. We offer a quick and simple approach to selling your home, with a free valuation in as little as 24 hrs and no obligation to sell.
