Posts Tagged ‘debt relief order’

How to manage debt better

Being in debt can be very stressful especially when your expenses are more than your income; this means there has to be some form of reassessment and management introduced where all frivolous expenditures are cut out. Below are a few tips to help people in debt manage better.

Spending habits:

It is important to exercise discipline about spending money for something that cannot be afforded for the moment, and think of saving for it before actually purchasing it. Also maintaining a list of expenses so that you know which ones to avoid till things become better is a good idea.
Planning for essential expenses:

Since these cannot be avoided, you need to save money by looking for better deals. For example you can look at alternatives to supermarket brands as that will definitely result in a lot of saving.

Saving on Interest Rates:

It is advisable to always look around for better deals on interest rate savings on credit cards, the interest rate you are getting on your savings and so on. It may not be a bad idea to open a new account with a bank who offers you incentives to do so.
If you have certain fixed mortgages as well as other loan expenses, then you can think of remortgaging so that you can get some relief in the form of lower interest repayments.

Settling outstanding bills:

It is crucial not to let outstanding bills accumulate as the interest rate on it can become very expensive over a period of time. Always endeavour to always pay off the entire bill and not just the minimum due.

Seek help:

If you find that you are still struggling even after incorporating the above steps, seek debt management advice from an expert. They will help you consolidate debts, develop debt management plans and help you make repayments gradually over time so that you are able to settle all outstanding without adding more through heavy interest costs.