Everyone has debt. Sometimes though, debt can overcome us. When you find yourself in a dangerous situation where the money coming in is less than the money going out there are steps you can take to level out the field.
- Pay the Necessities First
We all need a roof over our head, warm water to bath with, electricity to keep us warm. Always pay these bills first. Credit cards and personal loans are not essentials to our wellbeing.
- Then Pay those Accumulating Expenses
There are debts that are accumulating interest as time goes on, some more than others. To cut down on overall expense, the bills with the highest interest rates should be paid first and more than just the minimum payment. If all you pay is the minimum payment, it will take you forever to pay down those bills.
- Find a Better Deal
Some of those credit cards you have may have a ridiculously high interest rate. Find a credit card that offers 0% APR on balance transfers and switch. Pay as much as you can in that promotional period to cut down on your overall credit card debt. Cut up your old card and call the company to cancel it to resist any temptation in using it again.
Switching your mortgage or any other loans to a better rate can save you hundreds of pounds each month, this can then be used to pay off other bills as well.
- Increase Your Income
Consider asking your boss for a raise. Explain to him that your cost of living has increased and you would like your income to increase with it. It will never happen if you don’t ask! If that doesn’t work, look for a part time job that doesn’t interfere with your current job. The extra income could help you catch up or pay off your bills. At least try to get in some overtime.
- Ask For Help
When you notice your bills are getting out of hand and you can’t keep up talk to your creditors. With all of the people they hand out credit to, they deal with request for a better rate or a deferment on payments all the time. You won’t be asking for too much.
If your creditors won’t listen, talk to a debt counseling service. There are 5 major national debt counseling services:
Ph: 0808 808 4000
Hrs: 9am-9pm Mon-Fri, 9am-1pm Sat
This service is a free, confidential telephone call with a debt management specialist. After discussing your options with you they send out a written plan for you by mail.
Check your local office’s phone number in your phone directory.
This is another free and confidential service that is performed by trained volunteers. They set up an appointment for you to go over all of your bills and help you set up a payment plan to help you get out of debt.
Ph: 0800 138 1111
Hrs: 8am-8pm Mon-Fri
A much respected credit counseling service that offers telephone advice and may schedule a telephone or face to face interview for those in need of serious help. They assess your debt and even talk to your creditors to help reduce interest or extend your repayment period.
Ph: 0800 085 4298
Hrs: 8am-8pm Mon-Fri
Similar to CCCS, this company helps consumers to find a manageable payment plan to reduce their debt. They talk directly to your creditors and often arrange a lesser payment for you. With this company, you make one monthly payment to them and they pay all of your bills for you.
Ph: 0845 790 9090
Hrs: 24 hours a day
This company helps people cope with the emotional stress of being in debt. If you are having feelings of despair or suicidal thoughts, they will provide you with someone professional and understanding to talk to.
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