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Debt, particularly splashing out on your credit card for your birthday, Christmas or holidays is a normal thing in everyday society. However, feeling like you’re just about keeping up with your minimum monthly repayments or you feel like you’re slowly sinking under debt reminders isn’t good for you or future finances. There are a number of steps to help get you back on track with your finances…

Make A Plan

You need to be clear about your priorities. Don’t focus on your biggest debt or the one that is relentlessly chasing you day and night. Instead, focus on your debt with the highest interest rate, because this will be the one swallowing up all your money just on interest and not actually paying off the debt itself. Setting a simple hit-list of high to low interest rates will help you with more disposable money per month, each time a debt is cleared.

Prioritising Your Debts

Everyday bills can quickly mount and effect your perspective of being capable of paying them off, especially if your partner has recently moved out or you’ve taken a financial pay-drop in a new job/lost your job. Despite all your debts, you need to prioritise the ones that have a serious consequence if you don’t pay them eg. Your mortgage/rent.

If you’re concerned about your mortgage, it’s best to speak to your lender straightaway as they will be happy to negotiate a cut-down monthly payment if you ensure you will commit to your regular payments.

If you’re paying rent, speak to your landlord. They will probably ask you how you’re going to get back on your feet, so going fully-prepared with a budget will provide them with more confidence. Alternatively, look for another place with cheaper rent.

Other Priority Debts to consider…

  • Any fines (eg. parking)
  • Tax & Social Security
  • TV Licence
  • Energy Bills

What To Do Next? 

Don’t freak out! Speak to one of our Smart Money Experts who will happily discuss suitable loans, terms and savings you could potentially have after clearing your debts.

Apply for a loan here and speak to one of our experts