Debt is an ominous word and especially in the UK, even with the financial recovery amid the current austerity measures.
If you feel like you are on the financial brink or barely making ends meet, there are many actions you can take to improve your situation. Know that you can recover and get back on track with your finances. Professional guidance is at hand in Britain to help you.
Debt – knowledge is vital
Debt is about management. Before you can get to a better position financially, it’s essential to clearly understand your current position, your costs and liabilities, your income and assets. Budgeting is your money compass. Use an online worksheet to monitor your current monthly income and expenses. List every facet of your financial life. You may be surprised what you learn about your spending habits. If you follow the money trail, it’s likely that you will identify places where money is leaking through the financial cracks. Then use these monies wisely to your benefit.
Debt and contacting your credit card company
Are your credit cards your Achilles heel? In the debt trap you are not alone. Contact your credit-card company or companies. Call and speak to an account representative. Explain fully that you are having a difficult time with your payments. Construct a modified payment plan with lower monthly payments, request a reduction in your allocated interest rate, and ask the company for its recommendations. The fact that you are contacting them directly will be viewed positively; it shows your intent to repay the outstanding amounts. Attitude is crucial when it comes to money and debt, management and then financial freedom.
Debt and know your rights
Even if you are in debt and behind with your payments, it doesn’t mean you have no rights. Be sure you understand what credit card companies and other creditors can and cannot do in attempting to collect money you owe them.
For many people in the UK, one of the biggest problems has been managing the debt which they have accumulated over past years. With mortgage and loan rates having risen – in spite of cuts in the Bank of England base rate – increasing numbers of people are now struggling to meet their monthly repayments. Many folk are worried about possible repossession or a visit from the bailiffs.
Although the natural instinct at such times is avoid the situation, those who seek assistance at the earliest opportunity will avoid the worst consequences. It’s about managing the situation with a mature attitude.
Also wise up on the latest legislation and initiatives from the government so that you know the latest advantages, for example, lenders being easier on customers who have hit difficult times. There is often a lot you can action before you have to lose your home or your possessions.
We look at one of the solutions to combat your debt, maximise your income stream.
A measure against debt – maximise your income
If you’re struggling to meet repayments on your loans and mortgage every month, the first step is to make a detailed budget listing on your income and expenses on a month by month basis. You may need to cut out any spending on non-essentials – such as cable TV, new clothes or even luxury foods – until you are on top of your finances.
If you haven’t looked into switching your energy or mobile or landline phone supplier recently, you may find you can save money on your bills. Investigate and trim all outgoing wherever possible to reduce your debt load. It may be hard at first, but living debt stress free is much better!