It is incredibly easy to get into a spiral of debt, making you feel out of control with your finances. If you’ve accumulated debt and need some quick methods of paying some of it off, read on about the types of things you could be doing to rid yourself of some of your unwanted financial responsibilities.
If you need an urgent loan, borrowing money with MYJAR. By borrowing from a loan company you could pay off many of your suppliers in one go, leaving you with one debt rather than several. Although this doesn’t reduce your debt level, you might find it easier to manage in the long run. CAUTION: Only use payday loan companies temporarily. Ensure that you will be able to meet the repayment requirements, otherwise your debt will increase exponentially, due to the high rates of interest they charge.
Think of your present situation; you are where you are now and cannot do anything about the past. By budgeting, you can outline all of your outgoings against your expected income. In so doing, you can see where you have been spending unwisely in the past and can rectify the situation. Budget yourself when you go food shopping, spend less on treats, think of other ways you can save money. Keep everything within your budget, and you will make progress. You might even be able to save more money than you were initially expecting.
Pay off high-interest debts first
If you have a number of debts with different companies and do not know where to start, prioritise how you will pay them off. To prevent paying more than you need to, it is a good idea to start with the agreement that charges you the highest rate of interest. That way, you will be paying less interest overall. If you are not able to do this, due to the amount, choose the next highest, and so on. It can be easy to pay off the company who chases you the most, just to get them off your back. However, if you leave the high interest debts until last, you will be paying off more than you would be if you dealt with them first. It is possible that those high interest suppliers are keeping quiet for a reason (i.e. the longer it takes for you to pay them, the more they will receive from you).
Switch credit cards
Since you took out your credit card, there may be better deals now on the market. Some credit cards even come with 0% interest. If you are able to, open a new credit card with a better deal, to ensure that your interest repayment amounts are low.
It can feel quite depressing when you have to access money you previously saved for a long-term investment, be it a house, car, or simply money being set aside for a rainy day. However, by dipping into your savings, you can reduce your current debts or even clear them. Why not think of it as borrowing from yourself? Once you are back in control of your financial position, you can re-pay your savings account. In so doing, you might be more determined to save money in the future as you consider your long-term dreams that you have been saving for.
There might be a stack of items you currently own, that you are able to make money from. This could be a CD collection, a games console, or even old mobile phones. Consider how you can make money from your possessions. Online sites are an easy way of finding out how much value you could be receiving for some of your goods. If the situation demands it, you could even consider selling your house and renting it back (some estate agents allow this). Do you still need your car? Could you consider downgrading your mobile phone contract? A number of suppliers offer a SIM only deal so if you are happy with your handset, reducing your mobile phone bill might be one way that you can save money, allowing you to pay off more debts.
Whichever method/s you choose to pay your debts off, remember that you are not alone. For advice on where you can go to get help, see our webpage, ‘get help with debt.’
Get help with debt
Due to the number of people who require help managing their finances, there are various channels of support available. These include:
Searching for debt advisers online brings back a range of options. You can receive online, telephone or face-to-face advice from experts who specialise in assisting consumers with their financial affairs. We recommend finding an adviser who works on a not-for-profit basis. Not only will they charge you less for their time but it is also in their interest to sort your problems out promptly, as they have no reason to extend the advice sessions with you (as they are not making any money out of it).
Although you might be avoiding the companies chasing you for money, by admitting responsibility for your financial situation, you might in fact help yourself. For one thing, it can be incredibly liberating to speak to someone about your situation. For another, many suppliers are used to having to negotiate with consumers and setting up payment plans with them. Tell your supplier about your situation, and they may offer a repayment plan to suit you. You can then add this into your budget to reduce your debts gradually. Speak to family and friends
Although it can be tricky or even embarrassing to talk to them about financial matters, family and friends should be there to support you. Tell them about your predicament. Someone might be able to lend you some money to help you out, or point you in the direction of someone who can. You might be surprised to learn how many people in your network of friends and family have been in similar situations.