If you’ve been looking for a sign – this is it. It’s time to sit down, look at your finances and tackle your debts. No one likes looking at what they owe, whether it’s credit cards, payday loans, or store cards, it can be incredibly overwhelming and panic-inducing. However, it’s important to remember that you’re not alone. Everyone has some kind of debt, and no one likes having to deal with it! However, it’s much better to face it head on and deal with it – check out this advice from Creditfix.
Not only will you have a much stronger financial standing, but you’ll probably sleep better and your mental health will certainly get a boost. So, how can you start to manage your debt? Check out these simple – yet effective – tips here.
Get your head out of the sand
Constant reminder letters and emails keep appearing, and you either ignore them, or put them down and quickly forget about them. It’s a difficult cycle to get out of. However, it’s important to figure out who you owe and by how much. The first step here is acknowledgment. You need to know the facts so you can figure out what to do next. It’s difficult but worth it! From utility companies to credit card debts, there might be a lot to go through, or just one or two. But burying your head in the sand won’t help.
Figure out who to pay first
When contemplating who to pay first, check out the interest rates. The ones with higher rates will only make your situation worse, so it’s best to tackle them head on. Look at your credit card or pay day loan situation first. If you’re unsure, or you’re struggling to make the minimum payment on any of your debts, consider reaching out to a company that can consolidate your debts into one monthly payment based on your income and financial situation.
Plan your expenses
If you have a basic payment plan in place, you should then turn to your monthly/weekly expenses. Budgeting each month and paying close attention to where your money is going will give you a better handle on your finances and keep in control of your spending. Plus, the more planning you do the more money you find you have which could go towards paying off your debts.
Recognise if you’re out of your depth
Paying off debts can feel like you’re treading water. Which is why it’s important to recognise when you need help. Speaking to debt charities or firms who provide debt advice are great places to start.
If you’re concerned about your debts, don’t be afraid to ask for help and advice. Remember, burying your head in the sand will only make it worse.