Dealing With Debt
Are you drowning in debt? You’re not the only one – according to recent statistics, American citizens racked up a total of $747 billion in credit card borrowing alone in 2017. It only takes one lean period to have you relying on borrowing to keep yourself afloat, and it can quickly spiral out of control. The good news is, you can find your way out of debt and still hang on to your sanity. Here’s how…
1.Write down your debts
Make a list of every single penny you owe, and how much each debt is costing you each month. Are you only making the minimum repayments, or are you missing payments altogether? Prioritise your debts from the largest to the smallest, and work out how much you have left in the kitty each month after spending on essentials. You can save on essentials like your clothes budget by checking out Phase Eight discount codes at PlusVoucherCode.
2.Contact your creditors
The companies that you have borrowed from want to find a solution to your debt, so it’s in your best interest to try to come to an agreement with them. Tell them what you can afford to pay, and if you’re really struggling – they might even freeze the interest or arrange for a payment ‘holiday’ to give you a bit of breathing space. You can find a template that you can use to write to creditors on this page.
Although you should minimise your borrowing if you want to become debt free, it may be cheaper to pay off what you owe in one large lump sum each month. You could save money on interest with a consolidation loan, and it can be easier to manage just one payment – rather than trying to juggle a whole heap of them.
4.Get debts written off
Depending on how much you owe, and how scrupulous your creditors have been when lending money – it may be possible to get some of your debts written off. Bankruptcy is usually a last resort, but it can be a way to clear the slate and start afresh – and it’s increasingly common among people from all walks of life and in varying financial circumstances.
5.Talk to your bank
Make an appointment to go and see an advisor at your bank. There are lots of potential ways that they may be able to help – from arranging a small interest free overdraft, to putting a stop to all those crippling bank charges. Your bank can also help you to examine your account, and find out if things like continuous payment authorities are taking too much from your balance without your permission.
Debt can cause worry and stress at best, and severe depression and anxiety at its worst. Dealing with what you owe, and taking steps to sort out your debts will be a huge weight off your mind. If you’re coping with debt as you approach retirement, you can get good advice here. All that research you’ve done on interest rates and budgeting could actually turn you into a financial whizz kid – maybe you’ll be giving the advice in future!