Nobody wants to be drowning in debt. But these days, debt is just a normal part of life. The good news is, it doesn’t have to be a weight on your mind. So, here are our three tips to stay debt-smart and ensure that debt doesn’t get in the way of your day-to-day life.
- Make a Plan
It’s not the most exciting thing in the world to sit down and look at your finances but, trust us, it will pay off. Start by outlining your income and weighing it out against your outgoings: regular bills such as gas and electric, rent, broadband, mobile bill and so on. Next, outline your debts and detail them so that you know exactly what they’re for and when the repayments come out of your account. For example, detail them by type (mortgage, bank loan, credit card), next to type, state the amount you pay – which will usually be the minimum repayment owed, and then finally, the date on which the payment is taken from your bank. Once you have all of this down, you can start to calculate and give yourself a more manageable budget. What’s more, with all of this information, you’re in a better position to consult experts in debt management advice, as they will be able to assess your plan and advise you on the best next steps. So, always start with a plan.
- Seek Expert Advice
This is where you go from in debt, to debt smart. Don’t try to manage debts alone when there’s the option for help, especially if you’re circumstances have already called for you to make a plan to better see here your debts fall and how well you are able to manage them. Debt advice experts are there for a reason, and they could be the key to helping you stay on top of your debts in the most manageable and affordable way. Even if you’re doing OK for now – there’s no harm in seeking the advice that’s available to you. A simple phone call could lead to a great solution that will help you manage your outgoing debt and reduce any worries you may have about staying on top of them in the future.
- Manage Your Repayments in One Place
So, you have a plan, you can fully see the scope of your debts against your income and your regular outgoings. Maybe you have even looked around online for some extra debt advice. The next step is to look into consolidating your debts in order to keep them in one place and change them into one, manageable, monthly payment. Not only is this an easier way to keep track, it allows for a little more stretch on your budget, just in case life gets in the way. You never know when you might need to replace your boiler or fix a leak. One, manageable and affordable payment could be one of the best ways to get and to stay debt-smart, now.