In-depth guide to Managing your Debt
- 4 years ago
This video explains how to start taking control of your debt. It explores how you can create an effective debt reduction plan.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Debt Consolidation: https://www.solution-loans.co.uk/bad-credit-loans/debt-consolidation/
- Debt Consolidation Loans: https://www.solution-loans.co.uk/debt-consolidation-loans/
- Free debt advice: https://www.solution-loans.co.uk/blog/get-free-debt-advice/
- UK cities where thousands have debt problems: https://www.solution-loans.co.uk/blog/uk-cities-thousands-problem-debts/
- How to pay off your debt: https://www.solution-loans.co.uk/blog/pay-off-debt-even-seems-overwhelming/
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▶️ VIDEO TRANSCRIPT
However bad it seems, it’s important to remember that there is no shame in debt. Millions of Britons have, at one time or another, been in the same position. There are many people struggling with exactly the same issues that you might be right now.
The most important thing is to have a plan. Without one, you could end up floundering around and find yourself overwhelmed by your debt instead of managing it:
1. Be honest with yourself about your financial situation. Don’t try to avoid reality by not opening letters, hiding bills and generally ignoring your burden. List all of your outstanding debts so that you are fully aware of your situation. Make your partner, if you have one, fully aware of your situation.
2. Make a budget. List your income and expenses and look at where you might be able to cut back. You want to try and divert money to debt repayment. Stop buying expensive coffees, snacks and things which aren’t essential or don’t have long lifespans. Investigate switching utility suppliers for better deals and close any non-essential accounts that you can live without.
3. Prioritise your debts. Missing any payment is to be avoided but doing so with some is more likely to have serious consequences than with others. If you have a mortgage and/or a homeowner loan, make them your absolute priorities and pay them regularly if you possibly can. Not doing so could see you lose your home. Likewise any finance packages secured on a vehicle like hire purchase agreements or personal contract plans. These are called your priority debts
4. Use the available income you have and any you have saved to pay your non-priority debts. Be absolutely fair about this and share out what you can afford between all of your non-priority creditors by offering each a percentage of your available income, based on the amount you owe them. These are called pro rata offers.
------
▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Debt Consolidation: https://www.solution-loans.co.uk/bad-credit-loans/debt-consolidation/
- Debt Consolidation Loans: https://www.solution-loans.co.uk/debt-consolidation-loans/
- Free debt advice: https://www.solution-loans.co.uk/blog/get-free-debt-advice/
- UK cities where thousands have debt problems: https://www.solution-loans.co.uk/blog/uk-cities-thousands-problem-debts/
- How to pay off your debt: https://www.solution-loans.co.uk/blog/pay-off-debt-even-seems-overwhelming/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
However bad it seems, it’s important to remember that there is no shame in debt. Millions of Britons have, at one time or another, been in the same position. There are many people struggling with exactly the same issues that you might be right now.
The most important thing is to have a plan. Without one, you could end up floundering around and find yourself overwhelmed by your debt instead of managing it:
1. Be honest with yourself about your financial situation. Don’t try to avoid reality by not opening letters, hiding bills and generally ignoring your burden. List all of your outstanding debts so that you are fully aware of your situation. Make your partner, if you have one, fully aware of your situation.
2. Make a budget. List your income and expenses and look at where you might be able to cut back. You want to try and divert money to debt repayment. Stop buying expensive coffees, snacks and things which aren’t essential or don’t have long lifespans. Investigate switching utility suppliers for better deals and close any non-essential accounts that you can live without.
3. Prioritise your debts. Missing any payment is to be avoided but doing so with some is more likely to have serious consequences than with others. If you have a mortgage and/or a homeowner loan, make them your absolute priorities and pay them regularly if you possibly can. Not doing so could see you lose your home. Likewise any finance packages secured on a vehicle like hire purchase agreements or personal contract plans. These are called your priority debts
4. Use the available income you have and any you have saved to pay your non-priority debts. Be absolutely fair about this and share out what you can afford between all of your non-priority creditors by offering each a percentage of your available income, based on the amount you owe them. These are called pro rata offers.