If you find yourself in debt getting back in to the black can at times feel like an impossible task. If you’re paying high interest rates on what you owe then clearing the balance can take even longer than you’d bargained for, so how can you turn things around? Here are a few things we think could help.
If it seems fairly obvious to suggest that planning a budget will be greatly beneficial to your finances then that’s because it is. But despite this, many people fail to do it, which if you’re using a credit card and trying to deal with debt can make like very difficult. So sit down and compare your monthly earnings to your regular outgoings, such as bills, rent or mortgage repayments and insurance. You’ll then find out what you have left over to spend on everything else. Take a look at your statement and see if there are any easy savings to be had. This could mean cancelling a gym contract you’re not getting good use out of, or taking a peek at your grocery bill to see if any changes to your shopping habits could be made.
Make a balance transfer
If your debts have stacked up then you might think the last thing you should be do is make a new credit card application. However, if you’re determined to make a change for the better then a balance transfer card could be the way to do it. These products offer 0 per cent interest for a certain time period, giving you the chance to start dealing with your debt without also being hit with interest. Shop around to find the best deal and be sure to make yourself aware of the terms and conditions, as exceeding the interest free period will see interest rates kicking back in.
If you’re uncertain of your options then it might be worth seeking free debt advice. There are a range of debt help charities that will offer confidential guidance that you can trust to be unbiased. Many organisations are also willing to work around you, offering their assistance in various ways, such as in person, over the telephone and online.
Getting to grips with debt can be difficult, particularly if you’re concerned about what other people will think of your situation. But it’s nothing to be ashamed of and many others are in the same position, so why not start dealing with the issue today?