It’s easy to brush aside debts in the run-up to Christmas, with presents to purchase and days out with the family. But now it’s the New Year and it’s time to deal with the problem head on. So here are five ways you can get your debts in order this for 2019!
Make a budget
First off, take all your credit and debit card statements and make a list of the items you’ve purchased throughout 2018 that can be cut down on, and, or cut out completely. Maybe your Netflix subscription is no longer essential, cut it out. Dedicate a day to working through your past statements and cancelling any direct debts that need to be cancelled. Next, we can take a look at how much you are spending on your weekly food shop, if this is something that seems to be in excess and causing you money problems there are some brilliant apps available for you to budget while shopping.
If you cannot manage to budget yourself why not try our Free Debt Calculator which will show you how much debt you could potentially right off
Know your debts
If you participated in step one you may be half way there with this step already. Start by identifying all your debts, including overdrafts with banks. Next find out the interest rates you are paying on each of these debts, this will help you prioritise which debts to pay off first. Debts with higher interest rates should be made your first priority!
If you are struggling to find all of your debts and who exactly they are with there are free credit report tools you can take a look at that will help you with this step. Noddle and Clearscore are both free and show you your entire credit report.
Our team can also help you manage your debts and consolidate everything into one affordable payment Try Our Free Debt Calculator
Put your debts in order of priority
Following on from step two, once you know your debts you can start to plan a priority list. Not paying back certain debts can have serious implications, so you have to figure out what order this will fall into for you and your financial situation. For example, falling behind on your council tax can result in bailiff action pretty quickly, it can also result in serious implications such as seizure of goods from the bailiffs, so make sure this is a priority debt. The same goes for your mortgage payments, if you fall behind on these the implications are serious, you will end up losing your home.
Speak to your creditors
Once you’ve got a plan in place it may be time to speak with some of your lower priority creditors to see if you can come to some sort of payment plan which will work out better for you. Some creditors will suspend your interest for a set period of time, it’s worth giving them a call and explaining your situation to see how they can help you.
Consider a Payment Plan
If you feel like your debts have spiralled out of control and you can’t see a way out and feel as though you may need help from an expert, IVA Debt UK provide free one to one consultations for people struggling with problem debts and can help them find the correct solution for their financial circumstances. We will deal with your creditors for you so you don’t have to and could have you on a repayment plan that suits your financial situation in no time, paying back one set amount each month.
For more advice Try Our Debt Free Calculator or call their advisers on 24 hour Freephone: 0800 088 2599