Get Debt Free
What do I owe right now?
The first step is to work out who you owe and how much! I know that sounds boring and too simple but it really is the key to clearing debt. You can start with your Credit Report, which lists your credit accounts, from loans, cards and mortgages to utilities, mobile phone contracts and catalogue accounts. Not only will it show your credit history but the amounts you owe, court judgements, IVA’s and other information lenders use when calculating your credit history. There’s also a useful list of your lenders, which can act as a quick reminder of accounts you might forget.
You can get a totally FREE Credit Report here from Experian – Free Credit Report
2. List, List, List
This doesn’t have to be a long list, just who you owe and how much. If you use your Credit Report when doing this you will get a very accurate list of what you need to pay back.
3. Do some filing!
Organise all your bank statements, credit cards and utility bills into monthly files. Check your direct debits carefully and cancel any that should have expired or set up new ones to ensure you don’t miss any payments – some organisations offer a discount if you do this. Set up another file for your day-to-day spending, such as receipts for food, newspapers, petrol and fares. Make sure you arrange everything so you can see where your money is going in regular payments each month.
4.Budget – Set one!
If we are all very open and frank with ourselfs then I thin most would agree there are some areas we could cut back on. Personally I know I have some outgoings right now that I just really don’t need! This “spare” money can often go towards paying some debt back. Make sure your budget is realistic, or you’re setting yourself up for a depressing failure – and always leave some money aside for treats and emergencies, or you risk falling off the financial wagon through sheer frustration or because of bad luck.
5. Be Thrifty
The internet is a great place to find bargains or just get some good price comparisons. All those little savings do add up BUT beware! Don’t by cheap for the lack of quality. Often “cheap” items can be the most expensive! You could also join an online service such as www.freecycle.org, where people offer to give away unwanted items. Or hook up with one of the many local networks that enable people to swap their skills – you can exchange anything from babysitting and cooking to carpentry and accountancy skills without paying a penny.
6. Get a good report
Lenders look at your credit report when you apply to them, so it’s crucial that it’s up to date and accurately reflects your circumstances. One administrative error or a misunderstanding several years ago could spoil your chances of getting the credit you want in future. If you disagree with any entries, contact the lender and be prepared to prove your point. You can also get in touch with the credit reference agency that keeps your credit report – Experian is the UK’s largest. Other tips include closing unused accounts and registering to vote at your current address.
7. Be a detective – Research
The are still good credit options on offer and it’s up to you to find them. It’s worth spending some time on personal finance websites and reading the personal finance sections of the papers to get an idea of what’s available. Ask the lenders or suppliers for quotes before you apply, as every application leaves a record on your credit report – if there are a lot in just a few months, lenders may think you’re desperate or even suspect a fraud.
8. Take on the big debt first
Knowing what debt to take on and when is not easy. There are lots of finanacial formulas to work this out by the easiet way I have found is to go for the biggest and most demanding first. Workout which one is the biggest, then the next and so on. Then split your payments in proportion to this. Remember BDIL! (If you don’t know what that is check out my post on it here)
9. Ask for help
Please don’t hesitate if you are in financial trouble or simply just don’t know where to turn, there is loads of help out there is you just ask. I think the biggest mistake I made was waiting way too long before I reached out to ask for help. The months of worrying and keeping it to myself really cuased me some health challenges and my financial situation just got worse!
The website of the Financial Services Authority, www.fsa.gov.uk, is a good starting point, offering simple advice and a range of calculators. Mortgage brokers and your own bank can help you to decide on suitable deals and may come up with ideas you hadn’t considered. If you’re having real money problems, a number of organisations offer free advice – try Citizens Advice at www.citizensadvice.org.uk, the Consumer Credit Counselling Service (CCCS) at www.cccs.co.uk or National Debtline at www.nationaldebtline.co.uk.
I really hope that helps and I REALLY hope if you are having financial difficulty that you take some action and make a step towards getting yourself out of it. Please rememeber it is NEVER as bad as you think and there is ALWAYS and answer….I know because I really didn’t see a way out but there was!
You can get a totally FREE Credit Report here from Experian – Free Credit Report
To your success!
Matt
http://www.lifeturnaroundnow.com
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