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Ten Tips for getting out of debt
Debt Analyser: This great free tool from ClearDebt helps you understand how interest and APR affects the growth of your debts, and gives you a clear prediction of how your debts grow over a specific time period. ClearDebt offer free, impartial debt advice
and online solutions to your money problems.
ClearDebt Analyser
If you find that after being made redundant you begin to experience
financial problems, here are ten tips that may help.
- First of all DO NOT PANIC and
DO NOT IGNORE THE PROBLEM it
won't go away on its own accord
- Don't arrange to take out any further credit. You will only find
that you will get yourself into worse trouble.
- Make a list:
- Of all the people you owe money to
- How much you owe to each one
- What type of debt it is. This could be credit cards, mortgage, overdraft
etc. You should include companies even if you are up to date with
your repayments.
- Prioritise your debts listing those that have a drastic sanction
like repossession i.e.: mortgage arrears (you will need to agree on
repayments of these debts first).
- Calculate the total amount of money you will have available either
on a weekly or monthly basis.
- Check to see if you are entitled to any benefits. You may be pleasantly
surprised.
- Work out your expenditure and see if there is any way you can cut
back but don't underestimate the amount you spend on essential items
like food and fuel.
- Subtract your expenditure from the available money you have each
month.
- Get in touch with your most important creditors first and try and
re-negotiate your monthly repayments. Split any remaining money you
may have from your calculations between your other creditors.
- If you feel you can't cope handling your debts yourself, contact a professional organisation:
Useful Links:
The UK Insolvency
Helpline's purpose is to assist families and individuals who are
in financial difficulty by providing independent and confidential counselling
on personal budgeting, advice on the wise use of credit and, where appropriate,
achievable plans to repay outstanding debts.
local Citizens Advice
Bureau
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