With the media reporting that personal debt in UK is likely to be around £10,000 for your average householder by 2016, we are taking a look at some of the best ways you can help yourself out of a tough financial situation.
Financial issues are always a big cause of concern for people and as a result a lot of us tend to block it them out entirely in order to be happy. Of course ignoring this sort of issue usually comes back to bite you and the best thing you can do is accept it won’t go away on its own and will need your action! This can be true of any situation from being overdrawn with your bank to owing money to a loan company or family.
Ignorance Isn’t Bliss
It is easy to block out phone calls, ignore letters and emails but it is once again doing you no long-term good! The last thing you want is to then be receiving court summons or worse having bailiffs knocking at your door.
Start Being Smarter!
One of the quickest ways to start getting yourself back in the black is to be smart with what you are already spending. Are you struggling to pay off loans but have a gym membership going to waste? Do you have a Netflix account or magazine subscriptions? Little things like these can make a significant impact on your bank balance over the course of a few months! By making these little changes you are already going to be saving yourself around £100 per month. Another area people tend to make mistakes with is unnecessary spending. The likes of a new clothes, dining out at restaurants can be cut drastically in order to help you save and it is surprising how much we spend on doing these things – you could easily be saving yourself over £100 a week!
Can You Make A Claim
A lot of people who should be claiming benefits don’t and a lot of people who do claim shouldn’t at all. If you are genuinely struggling to get by on a daily basis then there is no harm in seeing whether you are entitled to support from the government. Benefits come in all shapes and sizes, from council tax support to child support and chances are you will be eligible for something. Fortunately the Internet is an ideal location to find other people who have or are going through a similar situation to you and you can therefore find out some useful information on how to get past it and what support you could be entitled to.
Contact Your Lender
One of the best and simplest ways for you to get on the right track with your debt is to literally contact the person or service providing you with your loan. If you are struggling to meet loan deadlines then tell them this and they should be able to adjust your payment plan. It is always advised that if you are going to take a loan then you do it from a trustworthy and professional company to begin with it.
To resolve any issue you must first prioritise the most important and urgent areas. So if you have a variety of debts it is key to work out which ones of these are most important to pay off first. These usually involve the likes of rent, mortgages and bills, because the last thing you want is to have the added stress of having your gas and electricity switched off or to be evicted from your home when you are already dealing with debt.
Once you begin to pay off debt it is important to do so in a manner that you can sustain. There are a variety of resources that can help you break down a sustainable repayment plan baring your earnings and expenses in mind.
Don’t Rush Into Drastic Measures
Before you jump into getting a loan you should take the time to come up with all the potential repayment solutions at your disposal. As we mentioned there are a lot of places you can get trustworthy advice from, so go into clearing your debt with a level-head, responsible outlook and a feasible plan. Once you have cleared your debt you will look back on it as an important learning experience and hopefully it will have taught you to be smart with your finances even when you are doing well.
We have found this great video from a uk vlogger describing her money saving tips that she uses to get through dealing with loans and increased living costs.