Struggling with debts can be a pain and you may feel that there is no hope to getting out of debt. Thankfully there are multiple solutions available to those who are struggling. It might be hard to acknowledge or let someone know about your debt situation and this is why you can always start by tackling those debts without professional help.
If you find yourself in a difficult position and struggling with your debts then a great places to start is by getting a copy of your credit file, to get a true picture of your financial situation. Once you have a copy of your credit file, it is important to ensure all this information is correct. If you are unsure about any information on your file, then it is best to contact the credit reporting agency where you obtained your credit file and speak with them about their dispute/incorrect information process.
Looking for ways to get out of debt can be stressful, especially if you don’t know where to start. There is hordes of information out there about the best ways to get on top of your debts and this is why we have simplified these tips that you can do to help wiggle your way out of debt. It’s all about getting the right information to guide you the right way.
- Keep a financial diary with you and write down all your expenses.
Make a list of all the bills and other money matters that are current, overdue or to be expected in the future. Once you have all this information, try working out a budget to determine how much you can afford to pay back on your debts each pay cycle.
- Set out priorities on who to pay first.
When it comes to debts, you can tackle these in a way that suits you best. Some options include paying the debt with the highest interest rate first or for small wins try paying off the debt with the smallest balance and work your way up to the debt with the largest balance.
- Always be upfront and be communicative.
Like any relationships – whether personal or business, communication is important. This is to show good faith and giving the creditors some idea on where you are at with your situation.
- Request hardship assistance from your creditor
Your creditors need to know that you are struggling to meet your repayments before they can help you. Speak with your creditor’s hardship team who will be able to assist you with a short term arrangement to help you get back on your feet.
- Seek the help of a professional.
This is especially applicable if your income is not enough to meet your living costs and also your repayment plans. There are several options that they can offer you such as debt negotiation, formal and informal agreement or others.
Tackling debts can be tricky and sometimes difficult to manage on your own. If you find yourself struggling to manage your debts, contact a professional agency today. They will be able to walk you through your options and help you get back on track.