Many people these days are struggling to keep their
heads above water with the debt load they are carrying. If you are drowning in
debt and are having trouble making ends meet, it is good to know that there are
ways you can get out from under this heavy load and the accompanying stress.
The first thing you have to do is admit that you are in financial difficulty.
The problems won’t solve themselves and they won’t go away simply because you
choose to ignore them and not make any changes to your lifestyle.
You do need to respond to any requests for payment by
at least explaining to the creditor why the payment is late and even offering
to make a partial payment. By ignoring the constant requests you are not only
deceiving those who extended you credit in good faith, but you are also
deceiving yourself. In addition, your credit score will take a battering.
Steps you can take
In order to get a handle on what you actually owe, you
need to sit down and make a list of your debts. Include the outstanding
balances on each one, the rate of interest charged and the due dates. Include
your mortgage or rent payments, and the amount you spend on groceries, clothing
and leisure. This will help you plan how you can repay the debts. Start with the
ones that are the most urgent, such as accounts that are in arrears or ones
that have high rates of interest.
By making a budget for yourself for the month, you will be
able to see how much money you do have left over for discretionary use at the
end of the month. You can also go over the list to see where you can cut some
corners to cut out wasteful spending, which is something that everyone has. Use
the extra money to make extra payments on some of your accounts, such as the
one with the highest interest or the one with the lowest balance so that you
can have it repaid sooner and this will free up more money.
Try to pay off any store cards and credit cards first
because these do carry a high rate of interest. You can also shop around for a
credit card with a lower rate of interest or possibly one with no interest
charges for a specified period of time. This will enable you to pay off more of
what you owe instead of paying it away in interest.
Look into switching energy and telephone providers. It
is quite possible you can save yourself a lot of money by taking advantage of
special offers for new customers with different companies. Switching your
mortgage to a different lender is also an option and is not as daunting a task
as you may think. People save money in other ways too such as looking at solar panel design companies to save on energy so it could
be worth looking into whether you can get a grant for this.
Take a close look at the amount of money that you
spend in luxuries. For example, if you usually dine at restaurants several
times a week, you can cut this back to once a week. You will be amazed at how
much money you can save in this manner. You may have some extra time on your
hands and be able to take on a part-time job, which means you can make more
money to pay your debts.