Money Management: Tackling Debt Head On


Being in debt can affect every aspect of your life. Daily stress and worry caused by money struggles can lead to problems sleeping, it can cause arguments with loved ones and it can really stop you enjoying life to the full by impairing your independence, curbing your capability of driving, going on holiday, and socializing. If you’re struggling with debt you’re certainly not alone. The good news is there are ways out of it and there are things you can do right now to start working your way towards financial freedom. The key is to tackle your debts head on.
Analyzing your situation

Before you can make plans to pay off your debts, you first need to understand exactly what you’re dealing with. This means sitting down and writing a list of everything you owe. Once you’ve done that, write down everything you earn, followed by everything you typically spend in a month. Sometimes you don’t even realize how much you’re spending so it helps to keep a diary for a month to see exactly where your money goes.
Once you have a good idea of what you’re spending, you can look at ways you might be able to cut back to pay off your debts.

Contact your creditors

It can be daunting contacting the companies you owe money to. However, as stated on the GOV UK website, most creditors will work with you to organize a repayment plan. You’ll need to create a financial statement which shows exactly what you have coming in and what you have going out each month. Any assets you may have will need to be taken into account, such as a savings account.
Writing a letter to each of your creditors with a financial statement attached is a great first step.
Consider professional help

There are so many organizations out there dedicated to helping you with your debt problems. The Citizens Advice Bureau is one of them and they even have a fantastic guide online that outlines your options. Their advice service is completely free and they can help to put you in touch with the right contacts to help you with your money problems.
Cutting back and making debts a priority

Sometimes the hardest thing to do is to cut back on what you’re spending. However, there are plenty of ways you can save money. Becoming a savvy shopper, selling anything you no longer need/use and comparing different utility suppliers can all help you to save money. The money you save can be used to pay off a portion of your debt. You need to start making your debts a priority if you want to pay them off.
Overall by making small changes today, you could soon start to pay off those debts and become financial secure. Getting out of debt allows you to focus on the important things in life such as holidays, learning to drive and saving up for important occasions such as your wedding or buying a new home. Don’t suffer in silence, there is help available. Following the tips above will help you to get yourself out of debt quickly and easily.

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