Deal With Your DEBTS

Most organisations would celebrate record numbers in January. Sadly the opposite is true for the UK’s debt charities, who see an influx of people in the new year.

Usually it’s extra Christmas spending that makes people go over the limit, but with the ongoing cost of living crisis, demand for help has been soaring month on month.

It means more and more people have been turning to overdrafts, credit cards and loans to get by—but these aren’t sustainable solutions. And they can quickly turn unmanageable, spiralling into problem debts and defaults.

But before that happens, these actions could help you take back some control, and prevent things from getting worse.

1. Get the whole picture

Sara Williams, who runs the Debt Camel website, says, “The starting point is to make a list of all your debts, what you owe, the interest rate and the monthly payments so you have all the facts.”

It really is vital to fully understand your situation—so get all the paperwork out as a priority. It might be scary to acknowledge everything, but leaving it too long will end up being even scarier.

Hopefully this step will help you work out what you need to do and you can see a way out.

2. Use your savings

Don’t forget to also take a look at your other accounts. If you have both debts and savings, you’re losing money.