Solutions for ridding yourself of debt

If you’re looking to make the jump and start getting your finances in order with a view of getting debt free, firstly, congratulations and secondly, here are some debt solutions to get you started.

The first thing you need to decide is who is going to get you out of debt. Are you going to attempt to get your finances in order yourself or are you going to hire the likes of a dedicated debt professional to assist you? If the latter, you can find some great debt management companies online who will look through the debts you currently have and who will also recommend some options to you with a view of getting you debt free in the quickest time possible. Most of the debt management companies I have been involved with tend to offer a debt consolidation option to lower your payments and give you the ability to pay more money off your loans and credit cards than you are doing currently by dropping the interest. If you’re in severe debt, more than £15,000, they may also recommend the IVA option if your financial and personal situation calls for it.
If you’re planning to get yourself out of debt, whilst being a little bit tougher than using a professional, there are certain steps you can take. The first step would be to work out what you’re currently paying and what you can afford to pay. If you can afford to pay more than you are doing, then do it. There is no point paying the minimum payments. The less money you pay, the longer it’s going to take for you to clear your balances. You also need to make sure that the money you’re paying out each month is working towards clearing your debt balance – not just paying off month to month interest. This is the mistake that most people make, especially when it comes to credit card repayments. The minimum payment in these cases is almost certainly ONLY interest.