Debt is unfortunately a big problem in the UK and a huge proportion of the population are struggling with debt from credit cards, overdrafts, purchase finance and large loans, having to resort to drastic measures like bankruptcy or trust deeds in Scotland to get a fresh start. Debt can loom over your life and be a big cause of stress and anxiety, but thankfully there are ways to get rid of it. Life without debt is possible and here are 5 tips to help you move in that direction.
The first step to getting rid of debt is to stop spending money that you don’t have. Cutting up credit and store cards will prevent you from going mad in the shops because we all know that it is tempting from time to time. Preventing yourself from spending is the first step towards solvency and you will probably find that you don’t need all the things you would have bought anyway.
2-Avoid payday loans
Payday loans are dangerous because if you miss repayments the interest rates shoot up and this can lead to more debt. These companies are everywhere at the moment but our advice is to stay away at all costs.
3-Sell your home
If you can not afford to pay the mortgage on your home then you will be in danger of losing it anyway, so perhaps selling it is the best option. Putting your house on the market could allow you to release the equity that you have invested with previous mortgage premiums, which you can use to remedy other financial issues. It can take a long time to sell a home and this could be a problem, but there are companies such as House Buyer Bureau that offer to buy a home below market value straight away.
4-Make a budget
When saving or cutting down spending it is important to make a budget. Start by writing down your income and then think about what essential outgoings you have. Give yourself some money for fun because life is here to be lived, but make sure that you are sensible and you will see the savings grow and the debt decrease.
5-Ask for advice
Financial advisers and bank managers are on hand to answer your questions about getting out of debt so you should not feel shy about asking for their assistance. Ask for advice and it could really help.