OK, first thing’s first. If you’re in debt, then know this: you’re not alone. It’s something of an epidemic across the UK and the wider western world, so try to keep this in mind before you start entering a cycle of negative thoughts. It’s not easy to get by in the modern world, especially if you’re part of the big economy and you have children, and sometimes it can all feel too much. But there are always steps you can take to improve your lot. In fact, we have five of these steps outlined below.
Confronting the Issue
It is tempting, and remarkably easy, to bury your head in the sand and pretend that there is nothing wrong, that your debt will come under control somehow, and everything is hunky dory. Everything will be hunky dory, but not before you start doing things about the debt. Now’s the time to confront your financial reality and understand exactly what kind of position you’re in. Even if it’s worse than you first feared, having a grasp of the situation is imperative if you’re going to emerge on the other side debt free.
Making them Manageable
No matter how out of control your debts might seem, you probably have more options than you realise to get them under control. You can speak with your bank and try to come to an arrangement that will involve paying the money back, but perhaps under more favourable circumstances. If you have debts with multiple businesses, look at homeowner unsecured loans and consolidate your debts into one single payment. There’s more help than you might realise to make your debts manageable, you just have to look for them!
Regardless of how much your monthly payments are, you’ll want to figure out a way to lower your expenditures so that you live more within your means. If you’ve not budgeted before, then take a look at some of the best ways to save money. You’ll be surprised by how easy it is to slash the cost of your bills, all just by putting in a little bit of effort. If you can lower your household bills, you’ll find you have plenty more cash in your pocket to pay down the debts.
Change Your Habits
As well as budgeting in the home, you’ll also need to change your habits when it comes to spending. This could be stuff like being more realistic about what you can and cannot afford, learning to say no to invitations that would stretch the purse strings too much, or making subtle changes - for example, instead of a two week holiday, you can go for a one week holiday, etc.
Above all, it’s more important than anything to keep an upbeat, positive attitude. You’ve already done the hardest part, which is to acknowledge the problem. From now on, it’s all about finding ways to find a solution to a problem that has been holding you back. And once the debt is gone, make sure it stays gone for good!