This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
Debt can be a scary thing to deal with. Phone calls and letters from creditors threatening to take your possessions, bailiffs turning up at your house. It’s no wonder debt is so closely linked to anxiety and stress. The thing about debt is it’s easy to get into but hard to get out of, often we start with good intentions. We borrow some money to get out of a tight spot or buy something we need, but the debt keeps creeping up. Eventually we reach the stage where we can’t even afford the minimum payments. Then that minimum payment only covers the interest, it doesn’t even bring down the debt. If you’re struggling, it’s so important not to bury your head in the sand. Do what you can to get out of debt which will reduce worry and put you on the path to a much brighter financial future.
Cut up Your Credit Cards
The first step to getting out of debt is stopping overspending. Are you in the cycle of paying some money off your credit cards but then spending back onto them? One of the best things you can do is cut them up. Don’t spend any more money on credit and run up your debts further.
Re-Evaluate Your Budget
Are you spending unnecessarily? For example, do you really use your digital subscriptions like Netflix and Spotify? These are the kinds of things that come out of our bank month after month and we disregard as they are not large amounts- but not worth it if they’re not being used. Are you spending too much on takeaways and meals out, and not cooking enough at home? Speaking to a financial advisor can be really useful. They can take a look at your bills and spending habits and help you work out a plan to get everything paid and ensure that all of your money is being spent correctly.
Speak To Your Creditors
Creditors can be scary, but they know that they can’t get blood out of a stone. If you ring them up and explain your situation, they have no choice but to work with you. You will often be asked for a breakdown of your incoming and outgoing money, from there they will often arrange a lower repayment plan that you can afford.
Speak to Debt Management Company
If you have a number of debts that have gotten out of hand, or you’ve spoken to your creditors and they won’t budge with repayments, it can be worth speaking to a debt management company. These companies and charities can speak to creditors on your behalf and negotiate lower payments and often frozen or reduced interest too. That way, any payment you make towards the debt takes down the balance instead of just being sucked up by the interest. While you’re in a debt management plan your creditors won’t contact you and so the threatening letters, phone calls and bailiff visits will stop. Having your debts under control in this way can be a huge weight lifted off your shoulders.
