Debt is not a topic that most people discuss when they meet up with their friends for a cup of coffee, yet it is something that a lot of people will experience at some point in their lives. If you asked your nearest and dearest whether they had ever bought something on a credit card and not paid it off immediately, many of them would say yes. However debt can end up being a problem when it is not taken control of in a responsible and timely manner.
There are many reasons that debts can begin to add up, but it is dealing with them that is the most important issue at hand. You might find this blog post helpful as a brief insight into dealing with debts - it might give you the inspiration you need to take control of your own situation...
Don’t forget about them
It can be quite tricky to remember about various credit agreements that you have, especially if you make manual payments rather than using a direct debit facility. However it is important to remember your payment dates as you may end up being charged more when you miss them. It is worth noting that some credit card companies ask you to make sure that payment has reached them by a certain date, meaning you should arrange it a few days beforehand to ensure it gets there on time.
Don’t ignore them
If you are aware of your credit agreements and even your payment dates, don’t ignore them on purpose. Debts won’t disappear by themselves, no matter how much you hope they will. When you know that you are relying heavily on your credit cards, try and sit down with your statements and see what you are buying, and then compare this to what income you are currently getting. If you get stuck, speak to your providers in the first instance.
Find clever solutions
When the main issue is the number of credit agreements in place, or simply paying a high rate in interest, you could look at something such as a debt consolidation loan. Providers of these such as Zopa could allow you to consolidate your debt http://www.zopa.com/borrowing/debt-consolidation so you are paying just one creditor rather than a handful of them. Some people find this option cheaper and easier, especially if they are currently paying interest rates of more than 16 percent. You could check what your own agreements involve if you want to see if this type of loan is right for you.
Seek further help
Sometimes one of the best places to start when it comes to debt is speaking to an impartial professional. If you would like to go down this route, you could make an appointment or visit your local Citizen’s Advice Bureau, or head to the Money Advice Service website. Alternatively, seek out the help of a financial adviser to speak through your issues, worries or goals.
Avoid the same situation
Finally, when you get back in control of your finances, remember to avoid the same situation from happening once again. Some resources online suggest cancelling or reducing credit agreements to avoid there being a means of temptation sitting in your pocket.
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