Debt is something that many people struggle with in today’s day and age. There is both good and bad debt, but when you are struggling to manage your debt, it can be a slippery slope and impact just about every aspect of your life. Debt is something that must not be ignored. Instead, you need to gain control of the situation and, fortunately, there are a few different ways that you can manage debt no matter what your situation is in. So, if you are in any kind of debt and you are worried about how you will manage, then read on for a few strategies.
Assess Your Situation
First, you need to take an honest and detailed look at your situation to determine if you are simply in debt or in a debt crisis. If you struggle to pay all basic outgoings each month and/or your debts are bigger than your annual income (excluding your mortgage), then you are in a debt crisis, but even in this situation, there are steps that you can take.
Prioritise Your Debt & Establish A Budget
If you are not in a debt crisis, then a smart way to manage your debt is to prioritise what you owe so you will want to be trying to clear any high-interest debt as soon as possible. You need to be in complete control of your finances, which means creating a household budget with as much going into debt clearance as you are able to realistically afford each month. You can find help with creating this household budget by reading this blog by Forbes.
Speak To A Debt Management Company
A positive step to take when you are struggling is to speak to debt management companies, especially if you are in a spiral and have multiple debts. Debt management companies can provide services and support and even take control of your finances by looking after what people owe. Therefore, if you do not know where to turn, then a debt management company is a good idea; you can learn more about them at Cash Lady.
Cut The Costs Of Debt
The key to debt management is to repay as quickly as possible while being charged a low-interest rate. Here are a few ways that you might be able to cut the costs of debt:
- Shift debt to a cheaper credit card
- Get a cheap personal loan
- Pay with savings
- Check for grants and supports
Speak To Your Lender
If you are struggling to manage your debt, then it is always a smart idea to speak to your lender, particularly if you are not going to be able to make a payment. There are various rules that they must follow and you might be surprised at just how much they are able to help, so you should not be intimidated by letting them know (it is also highly common). A few ways they may be able to help include putting a 30-day hold on your account, extending repayments for longer, or freezing your interest.
Debt is very common in today’s day and age, but it is vital that you know how to manage this debt safely and successfully so that you can avoid this interfering with your life and happiness.