You live in the UK, you face debt problems and it is looming over your head like an unpleasant and expensive root canal. Most of us keep shoving the bills into a drawer and leave our bank statements unopened. Many of us keep charging on cards that we know are long maxed out and we continue to default on all our monthly repayments. Most of us cling to a fictitious number in our imaginations that represents our problem but that is very far from the reality of the situation.
Start to solve debt problems by making a debt checklist
In any unpleasant situation, the first instinct is to run away. It’s human nature. However, if you take a deep breath and commit to facing your debt problems realistically, it isn’t actually that bad. Start by making a debt checklist.
What is a debt checklist? The theory behind it is really simple. Basically you look at your income and your expenses which is your budget, and then you look at your debts. Once you have reconciled your personal budget and established that you can put food on the table, you not need to address all expenses and take a creative look at what you owe.
All you need to do on your first debt checklist to help you solve debt problems is record any and all options you can come up with to solve your debt problems, no matter how far out they may seem.
These are some examples of how to solve debt problems:
1 Your spending: Work out your budget. What is your income? What are your expenses? Once you have paid all your bills, do you have anything left over? Are you in deficit? If so, you need to address your spending.
2 Are you eligible for government benefits that pay for the interest on your mortgage. You may also qualify for the Full Rescue Scheme, in which your local council will co-purchase half or sometimes all of your property and retrieves its investment through a rental levy.
3 Please pay me back! You may be paying all kinds of bank and credit card charges that you shouldn’t be paying and can claim back. Make sure you are paying the right amount of Council tax. Make sure you didn’t accidentally take on all kind of things like protection insurance on a bank loan that you didn’t really agree to. Its all extra money at the day.
On our second checklist we will look at how to reduce what our debt is costing us. The ultimate goal of course is to pay the debt off as quickly as possible and pay as little interest as possible. This goal and its not always completely attainable. Here are some tips:
1 Most importantly you are going to want to know what your credit rating is. If you don’t know your credit rating and it is not the best score, it is not a good idea t start applying for credit left right and center. All those denied applications also sit on your history for 6 years.
2 Credit Cards seem to be one of the cheapest and most efficient methods of getting cheap credit as long as you play strictly within the rules of the game. Another thing Credit Cards can do for you is give you access to the Credit Card Shuffle, which once again is a strict game that works if you play it properly. A lot of Credit Cards allow clients to bring other debt over at special rates, and reduces interest by one fourth.
A small glimpse at the long Debt checklist. There are 10 positive options to every negative statement you have to say about your condition. You aren’t the only one. That guy who is behind you in traffic, sitting in his big Land Rover and laying on the horn all aggressively, is probably up nights just like you wondering how he is going to pay for everything.