Debt problem is on the rise at a rapid speed, all over the world in general and UK in particular. This makes consumer desperately look for effective solution to this problem. The key to successful debt management lies in making effective plan and sticking to it properly. Here are some tips on easy debt management and ways to be debt free:
Give a close look at your debts. You may be too busy or too lazy to realise how much you actually owe.
Monitor your outgoings from a close angle and avoid further debts. You may not stop spending altogether, but drawing up a budget you can do away with unnecessary spending.
Sort out your debts on priority basis: mortgage arrears or rent should top the list. Other secured debts, gas and electricity bills must be taken care of. Then consider the other creditors and work out a realistic plan for debt repayment. It may take time to pay off the debts, even some years. Don’t worry; it is always better late than never.
You can replace your debts with better deals like debt consolidation loans through shopping and comparison. Find out the average interest rate of your total debt obligations: loans, overdrafts, store and credit cards. Then consider other options that can provide you with cheaper interest rates.
You can consider the option of balance transfer. But here you have to be very careful. Some card providers offer six months free or very low interest rates on balance transfers. But you may end up in paying higher in the end. So, check out the rate you will pay when the offer gets over.
- Wrapping up multiple debts into one loan is an effective way of making debt management easy. It can be a good idea because a single monthly repayment is tidier and more convenient. But, don’t forget to do your homework before accepting a debt consolidation loan package.