Posted: Sat 14th Sep 2024

How to take control of your debt

News and Info from Deeside, Flintshire, North Wales

Tackling your debt can help you feel more confident in your finances and more at ease in life. Even if debts aren’t putting you under financial strain, organising them effectively can simplify and streamline the process of repayment. Here are some of the best ways to take control of your credit.

Understand your financial situation

To exercise control over your debts, you first need to understand them fully. This is particularly true if you have more than one. Different balances, lenders and repayment dates can make things much more complicated for you.

List all your outstanding debts, including credit cards, loans and overdrafts, noting all the essential details. Having a clear overview of interest rates, remaining balances, terms and repayment amounts can help you prioritise the most important. You’ll also be able to plan comprehensively for all your debts.

Tackle high-interest debts first

The key to taking control of your debt is to start paying it off at a rate that works for you, starting with those with the highest interest rates. This is crucial because these are effectively costing you the most. The longer these go unpaid, the more they’ll cost you.

Prioritise repaying these debts first to ensure you’re repaying the least amount possible.

Create a budget that works for you

Budgeting allows you to align the rest of your finances with the process of paying off your debts. Once your regular outgoings and expenses have been accounted for, your disposable income can be allocated to pay off priority debts.

List your monthly income and take away all your essential bills and spending. What’s left over, your disposable income, should be used primarily to take control of your credit. If what’s left over isn’t enough for your repayments or goals, look for ways to cut your spending.

Find ways to reduce your monthly repayments

If your monthly repayments are too much to comfortably afford, you may want to find ways to ease this strain on your finances. Options like debt consolidation loans can help you simplify the process of repaying multiple debts and allow you to spread your repayments over a longer period – meaning you could owe less overall each month. However, it’s crucial to understand that you’ll probably owe more in the long term by doing this.

You could also try speaking to the people or organisations you owe. They may allow you to negotiate new repayment terms or lower interest rates. If you’re struggling to manage debts of any size, it’s always worth seeking support and getting free debt advice.

 

Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email: [email protected] Latest News

  • Public sector shielded increased national insurance costs, says Mark Drakeford
  • Police appeal for witnesses after Oakenholt assault
  • Specsavers Broughton and Welsh choir partner to promote urgent eye health services

  • More...

    Public sector shielded increased national insurance costs, says Mark Drakeford

    News

    Police appeal for witnesses after Oakenholt assault

    News

    Specsavers Broughton and Welsh choir partner to promote urgent eye health services

    News

    Operation Restore: Flintshire police respond to fireworks and off road bike incidents

    News

    Residents urged to share crime concerns in North Flintshire police survey

    News

    Flintshire Councillors could be in line for a pay increase of over £1,000 from next year

    News

    New vaping regulations welcomed amid rising youth usage in Wales

    News

    Countess of Chester Hospital revamps parking for visitors

    News

    Fatal Mid-Wales train crash: Accident investigation branch give update

    News