Debts are mounting up and you can’t pay them off?

If your debts are getting out of control, and you feel as though you can’t possibly pay them all, then sit down and list all your debts. Work out which ones are priorities and list them in order. Mortgage/rent for example may be your first priority. Talk with the organisation you have the debt with, most organisations will appreciate that you have contacted them first and told them the truth.

The first thing I did was put all the information from my bank statements onto a spreadsheet on the computer and at a glance I can see how much I have spent on e.g. shopping for a month or fuel. Doing this makes it easier to see if you could save money on your spending. This is my way of budgeting.

Do a budget sheet with all your expenses/income listed and work out how much you could realistically afford and what you could cut down on. This may take a little time but believe me it will save you stress and worry in the long run.

Cut up any credit cards you may have to stop you spending further on them.

Stop ordering items from your catalogues, pay off and stop.

Don’t purchase anything on credit anymore. E.g. Store cards etc.

When you’ve done your budget sheet, see how much the income comes to in the household and check to see if you are legible for any benefits or tax credits.

Before considering a loan to pay off your other debts, think first very carefully. Interest rates are extremely high these days and if you have bad credit you will only be accepted for one maybe two companies and their interest rates are astronomical. You will end up paying back loads more than you borrowed.

Check your utility bill - could you save money on switching.

Do you really need fully comprehensive car cover when you only have a little old car. You will save money by only insuring your car for what it's worth. If you are renting your property, the buildings insurance will be included in your rent, so make sure you are not paying for contents and buildings insurance.

Stop popping into the corner shop for milk and bread each day. Buy your bread once a week and put it in the freezer. Take slices out as you need them. Milk can be frozen, but to be honest i have never done this myself, so i cannot comment on freezing milk. If you need to go to the corner shop for milk, only take the required amount for milk and do not buy anything else.

Do you really need those take-aways at the weekend? Try and cut back on the luxuries for a little while, until you are comfortable and return to the black.