Debt Woes? Read This
By Money Desk
Tuesday, March 28, 2017.
They say most people are in some form of debt. Whether it is finance, credit debt, heavy mortgage, however you want to spin it, it exists on mass in this world mainly built on capitalism. However, there is a difference between being in debt that it now manageable, and debt that is. When unmanageable debt comes along it can literally ruin your life. Phone calls coming through all the time, letters, emails, thinly veiled threats of repossession and the like. There are ways to deal with this kind of encroachment and it all essentially depends on you paying the debt off. It sounds harder than you think, you don’t have the money right? That’s why you are in debt in the first place. But it can be done by being clever and determined. These tips can help you, you may have heard of some of them before, yet read on and you could see something else that could help. Good luck!
The first thing you are certainly going to need to do is cut back. You need to ensure that you try your hardest to rein in unnecessary spending that could be stopping you from paying your debt off. Make clear cut lists before you go shopping. Think about using coupons where you can and getting the most out of codes, check out DontPayFull.com for more details on that front. Look at your monthly expenditure too, day to day is a good start but you can really limit outgoings by focusing on monthly direct debits. Cancel that gym membership and go for runs outside instead. Get rid of Netflix. These are the kind of sacrifices you need to make to get rid of your debt.
Agree To A Payment Plan
Speak to the debtors. Don’t ignore them. If you ignore them they will just take further steps like going to court and getting a judgement on you which could leave your credit rating in total tatters. Avoid this if you can. Agree to a repayment plan and pay monthly, this is the best way to go if you want to preserve your credit rating. It can be as low as you like, don’t let them pressure you into an amount that you can’t afford, pay what you can and be done with it. You can then use the extra money you save from cutting back to pay off bigger lump sums in increments. The sooner you pay it off the less interest you pay.
Try A Consolidation Loan
Sure, loaning more money sounds pretty stupid doesn’t it? But, it can be the answer you have been waiting for. It works in a simple way. You work out how much you owe, go to the bank, and agree a loan for the same amount. You then pay off everything you owe, meaning you only owe one lending stream instead of a multitude of lenders. It gets people off your back, protects your credit rating and means you are paying less off each month, as per the new agreement with the bank.