If you have debt problems it can be a constant source of worry. Though you may feel like you have no way out, there is always a way to regain control of your finances no matter how much money you owe. The steps below should help you on your way to getting yourself out of debt, but be aware that the solution that is right for you will depend on your personal circumstances, so make sure to look at all of the options carefully before deciding how to move forward.
No matter your level of debt, it is important to work out exactly how much you owe. It can be difficult to keep track of when you have many repayments to make each month, but working out an exact figure will help you put an action plan in to place to take care of it. Sit down and work through exactly how much you have coming in and going out each month- this also should help you to identify areas where you might be overspending. Often smaller debts can be solved just by setting yourself a plan to cut your spending like this- it can be hard to cut back though when you’re used to living a certain way, so you may want to rope in a friend to tell you if you’re being unrealistic.
If your debts are more serious than you can manage yourself, make sure you seek some extra advice. Your bank will often be able to help you if you are struggling to repay them so don’t be afraid to go in and make an appointment with the bank manager. They may be able to help you with a repayment plan, extend your overdraft or even cancel some charges for late payments. It is also wise to go and see your local Citizens Advice Bureau for some free help on managing your debts.
In the most severe cases there are drastic options you can take, like bankruptcy or an IVA. You must make sure that you have tried all other options before considering steps like this though as they carry serious consequences such as further damage to your credit rating. It is up to you to research all of the options thoroughly before deciding which one is right for you.
This article is just an overview of the options available- there are many solutions out there and everyone’s circumstances are different. Don’t be afraid to ask for help; sometimes admitting there is a problem to close family and friends is the first step to taking control. Make sure not to lose hope- no matter how large your debts, it’s never too late to get back on track.