Are you tired of barely getting by? Is your debt so bad you have begun to consider bankruptcy as your only option for sanity and relief? If so, you need to take a step back and breathe.While bankruptcy is sometimes the only option for individuals facing massive amounts of debt they can’t handle, there are other methods you can try first for managing your debts that can help you regain control over your finances such and an IVA or a Debt Management Plan.
What to do When You Want to Get Out of Debt
By taking a few simple steps, you can begin to eliminate your problems with debt and get back to a place where managing your debts is possible.
- Figure it Out- The first step you should take is figuring out exactly how much debt you owe and to whom you owe it to. Don’t leave anything out, either, or you will end up regretting it in the future when you more debt problems arise.
- Create a Budget- If more than 20% of your monthly income is going toward your debt, then you need to begin taking steps to gain better control of your finances. Begin by creating a budget that you can stick to that includes a schedule of when you are able to make payments on your debt. Think about this carefully, however. If your budget isn’t realistic, you are going to have a more difficult time sticking to it.
- Watch Yourself- When you are struggling with debt, it is hard to think about anything but money. However, that doesn’t always stop you from impulse buying or giving in to a great sale’s price. You need to watch your spending and be disciplined enough to not need to borrow any more money while you are paying off your current debt. If you can’t trust yourself with your credit card, don’t use it. Give it to a friend for safe keeping or put it in a drawer so you won’t use it.
- Stay Organized- Life comes with multiple bills, and it can be difficult to keep track of each one every month. Try to stay as organized as possible, though. If you can, have most of your bills taken directly out of your bank account so you don’t have to worry about forgetting to pay them on time. This reduces the amount of penalties you have to pay each month.
- Cut ‘Em Up- Store cards can increase your debt more than you realize. Most of these cards have high interest rates, meaning you will pay much more for the items you want than you normally would.
- Get Help- If you have done everything you can on your own to deal with your debt and still can’t seem to plan your finances effectively enough, it is time to get some help. Talk to a debt management company and find a debt management solution that can help you become debt free as quickly as possible so you can begin living your life again. You may qualify for a debt management plan, IVA, or debt consolidation.
When your debt seems like it’s out of control, you may feel as if there is no hope left. However, there are some simple steps you can take to deal with debt problems on your own and with the help of a professional debt management company.
Martin Bradley is a representative of Harrington Brooks. He says “When we leave school and enter the big wide world, we are ill equipped to manage debt. With offers of loans and lines of credit being thrust at young people, the temptation to refuse it can be hard. When we find we can no longer repay our financial commitments, the companies that provide the finance can be ruthless in their recovery. Unfortunately it’s a trial and error system that a lot of UK individuals find hard to recover from without the help of a professional debt management company.” More information can be found at the Harrington Brooks website.