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Debt Advice - Short term problems
Everyone suffers from short term problems at some time in their life.
Here are some actions you can take which can help speed up the time it
takes to get your finances back to normal:
- Draw up a simple monthly budget
and try to stick to it.
- Move to cheaper lenders. Most
people have a wallet or purse full of cards that they’ve had for
many years. Your credit score tends to get better as you grow older,
so you could qualify for cheaper interest rates by now. Store cards
can be really expensive. On average, people who spring clean their
finances find the cheapest cards matched to their current credit
standing save £400 per year. Go for 0% introductory deals to save
even more and always remember to close your expensive card accounts
to avoid the temptation of using them in future.
- Switch to a cheaper utility
company. It only takes about 20 minutes and typically will save £200
per year.
- Ask your bank for a list of all
standing orders and direct debits. Go through it and cancel anything
you don’t really need.
- Sell any unwanted items on eBay.
- If you have taken payment
protection insurance on any of your loans, cancel it. You’ll be
surprised by the reduction in monthly payments. It’s a rip off.
Consider a Income Protection Plan instead.
Click here
for further details.
- Arrange to pay the minimum payment
on all your credit cards by direct debit, and then pay more if you
can afford it using the tear off slip on your monthly statement.
That way, you’ll keep your credit rating intact.
- Make sure you are claiming all the
state benefits you are entitled to.
- Claim back any bank charges you
may have suffered.
- If you have a mortgage, think
about re-mortgaging, preferably without increasing the debt, to a
new mortgage lender that offers an introductory cheap rate. Do your
sums carefully. Call 1st Call 4 Mortgages on 08458 386938 to discuss
your options.
- Think about selling any shares you
may have, any premium bonds and changing any foreign currency you
may have. The proceeds are better off used in reducing your debt
than they are in a drawer.
- If you have a car with a loan
outstanding against it, check whether you could be better off
selling it, repaying the loan (check for any early repayment
penalties first) and leasing a new one to reduce your costs of
motoring. A small car can be leased for just over £110 per month
which will cover your road tax, breakdown cover and provide a
warranty against breakdown. Pick the right one and you could save
money on fuel too.
If you’ve tried all this and you are still worried, try our
suggestions on Debt eating
you up
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