Regardless of how you get into debt, it can place unnecessary stress on both you and your family. So it’s good to know that getting out of debt isn’t as difficult as it may seem. Greater Building Society branch manager Adam Butler has some valuable advice to help you get your head above water.
Let’s face it – getting into debt can be easy. There are a lot of irresponsible lenders out there who make easy credit available instead of keeping your best interests at heart.
If you’re carrying the burden of debt, you’ll know how much of a worry it can be. But if you have regular repayments, multiple debtors and rising interest against you, getting out of debt can seem an impossible task.
What if I told you that getting out of debt was as easy as getting into debt? Sounds too good to be true, but, hear me out and take a read through my simple three step process.
Get the lay of the land
Take stock of all your debts and get an overall picture of your credit situation. Calculate how much you owe on each debt, how much interest you're paying on each debt, your debt total, the timeframe you’ve been given to honour each debt, and any extra fees and charges you’re paying your debtors.
Look to consolidate
Turning your multiple debts into one loan has many advantages. You save money on different interest rates and multiple sets of fees, it can help improve your credit rating, and it leaves you with one convenient repayment to make each month. The easiest way to consolidate is by taking out a Personal Loan with a fixed interest rate.
Get the right loan
Before you sign anything, you should do your homework on your current bank. Do they have a history as a responsible lender, or are they more interested in their profit margin? It can be worth your while to find an organisation with your best interests in mind.
If you’ve got any debt consolidation tips that have worked for you, we’d be happy to hear them – just leave them below in the comments.