Get out of Debt FAST!
So you’re in debt and you know that you need help but don’t have a clue where to start?
Maybe you’re considering re-mortgaging, debt consolidation, selling all your worldly possessions or even bankruptcy but need to know which one is really best for you.
Let’s see what we can do about providing you with the right information to help you make the best decision.
There is always a solution. Here at debt help tools we are going to help you find the best solution for you. Remember there is always something you can do about where you are right now, so please don’t panic.
Debt can be very scary if you’re feeling lost and out of control, but when you get it organised and get the right help and support, it really isn’t all that bad, honestly! You might even be able to turn it around so that it MAKES money!!
Where to start
Firstly you need to know the size of your problem. This can be particularly challenging if you have multiple credit cards, a mortgage, loans, student debt and a bank account or two.
To help with this, we have created a super simple expense tracker that will clearly show you how much you owe and which bits of it are costing you the most. See download It’s worth noting at this point that if you have savings that are earning you LESS than your credit is costing you, use them to pay off the credit asap!! Of course if it makes you feel more “comfortable” to have money in the bank, that fine, it’s your money (I hope), but just know how much that comfort is costing you in interest charges, it might start to feel a little less comfortable when you translate it into cold hard cash!
How much do you owe on loans and credit cards?
NOTE: Exclude mortgage totals but include any rent or mortgage payment arrears
- It’s only a small % of my net income and I’m managing to pay it down every month
Congratulate yourself on getting this sorted out now; if you were to leave it, these things can quickly spiral out of control. Firstly check your credit score and make sure that all the information they hold about you is correct, you might have to get these things fixed before you move on. Then make a clear record of how much you owe and what the interest rates are and eee if you can get some 0% credit cards and use the FREE excel tracker together and the cation plan with some FREE online calculators to see how this will affect your overall debt.
- It amounts to quite a lot of my net income and I’m managing to keep up the payments but it’s tight.
Don’t worry, you got this. Check your credit score, make a clear record of how much you owe and see if you can get some 0% or lower % credit cards. Download the FREE excel tracker and action plan but do NOT jump into a consolidation loan or re-mortgage just yet. Look at selling unwanted items through eBay, amazon marketplace, Craigs list, facebook etc. Even downgrading your car or house might be an option if you are seriously committed! Reduce your outgoings by getting better deals on your household bills and regular spend items (TopCashBack, Earny, Quidco, Shop at Home etc. and start tracking your spend , try free apps such as….
- It’s a lot and I’m defaulting on my payments!
Don’t panic! Follow all the steps in the checklist, work on your credit score and cheaper debt investigate at consolidation options and if you are really being hounded look at “what lies in your debt” to see if there is a chance you could turn this around and MAKE money from your situation! A debt relief order or bankruptcy might be an option for you but get some GOOD independent advice before you make any decision in this direction.
- I don’t know; I can’t bear to look!
Ok, don’t stress, it can be hard to move forward if you aren’t sure where you are right now, it’s confusing and stressful. Get some emotional support and set some time aside to work on this, it’s important. Download the free excel template to see what your situation looks like and work through the checklist and action plan step by step. This will also help track progress so as you start to get rid of your debts you get a great sense of achievement. Remember it’s only money, it’s not life or death but if you are having debilitating anxiety about it, get some help and support sooner rather than later!
Do you use any software, money apps or simple spreadsheets to track what you spend your money on and how much you are being charged for your credit?
- Yes, I couldn’t be without it, I track everything I spend and receive plus I track all my interest rates.
Well done you! Keep it up. There are so many useful apps and trackers out there for free these days, don’t forget to check out what’s new on the market. Tracking is great, but are you using these insights to get better deals? 0% credit can actually make you money if you invest it well, plus using cashback cards for spend (that you pay off monthly) and sites like Qidco and ….. can save you even more!
- Yes, but I’m not very consistent with it, it’s too time consuming and complicated
I commend you for your effort and if it’s not your thing, keeping track of your money can feel like a chore but there are so many software programmes and tracking apps to choose from these days, have a look for one that’s simple and automated where possible, after the initial set up it will save you so much time and money in the long run!
- No, it scares me a little to be honest
That’s perfectly reasonable. It’s worth trying out a really simple spreadsheet to start off with and see how you go. Many new apps and software applications are designed to be very user friendly so you never know; you might just find one you like, and most of them are FREE too! If you still feel that your money mind-set is stopping you from moving forward, get some help with it or join some online support groups. This is such a common block for many people, you are not alone and the help is there for you.
- No, never really thought about it.
You might really find this life changing then! It’s worth trying out a really simple spreadsheet to start off with and see how you go. Many new apps and software applications are designed to be very user friendly so you never know; you might just find one you like and most of them are FREE too! If you do however feel that your money mind-set is stopping you from moving forward, get some help with it or join some online support groups. This is such a common block for many people, you are not alone and the help is there for you. Failing all that, maybe find a trusted friend to support you or employ a bookkeeper if you know this is not something you are ever going to do.
How do you feel when you think about your money situation?
- Great! I love sorting my money out
Fantastic! Keep it up. There are so many amazing free bits of software and apps available to help you track spending, don’t forget to check them out!
- OK but starting to get worried
Don’t panic. Work through the FREE checklist and get some support, you’re not alone. Working on how you feel about it can be just as important as paying off your debts!
- Really Anxious
It’s not worth getting upset over, please don’t panic. Work through the FREE checklist and get some support, you’re not alone. There are so many support groups out there to help you address your money mind-set. Working on how you feel about it can be just as important as paying off your debts!
When was the last time you checked your credit score?
- Regularly, at least once every six months.
That’s great! Don’t forget to look at all the credit agencies though, they can hold different information about you and it might not be accurate
- Over a year ago
Things change rapidly in this game and if the credit agencies are holding incorrect or out of date information about you it could be costing you money in lost opportunities for cheaper credit. Keep informed with the information they hold about you.
- Can’t remember
It’s free to check what information the credit agencies hold about you, and it takes just a few minutes. It could mean the difference in a good loan or mortgage rate and $thousands lost on a poor one!!
How often do you review your utility bills, mortgage products, insurances and phone contracts to make sure you’re always getting the best deal?
- As soon as each one comes up for renewal or the contract expires
Brilliant! If you don’t already do this, set reminders in your calendar or mark the dates in a spreadsheet so that you can get new deals in place before the old ones expire. When comparing, don’t forget to get cashback too!
- 2-4 years or when I remember to look at it
That’s great but it might be worth setting reminders in your calendar or marking the dates in a spreadsheet so that you can get new deals in place before the old ones expire, it could save you a fortune over the year. When comparing and signing up for new deals, don’t forget to get cashback too!
- Can’t remember or have never done it
You could be throwing away $thousands! For the sake of an hour or so every month, you could be saving a huge amount of money. Your needs change over time, the broadband you use, the insurance cover that you might be still paying for but is no longer relevant, the utility provider that overcharging just very slightly all the time…….It might only be a small amount every month but that really can add up very quickly. The small amount of time you spend organising this it could be one of the best paid jobs you’ve ever had!
Do you use cashback sites or money back credit cards to reduce your spending?
- Yes, I think they are brilliant ways to get money back on items I would have bought anyway.
Brilliant! Keep it up. Don’t forget to check some sites directly too, sometimes it’s even cheaper than using the cashback or voucher sites. Cashback cards used to pay for items on cashback sites could be a double whammy!
- No, I think they’re a scam
That’s a shame. They really aren’t. I’ve personally had a lot of money back for buying car insurance and switching TV providers etc. it costs nothing to sign up and they are really user friendly so you have nothing to lose! Cashback credit cards are great paired with cashback sites or just for day to day purchases. Buying all your food and petrol with one of these can give a nice little windfall every year when they pay out the cashback!
- What are they?
Cashback sites provide you with a list of suppliers for the particular product that you search for; this could be utilities, food, or general home and clothing. If you click on the link provided by these sites and go on to purchase something, the cashback sites will PAY YOU!! It’s usually a % of your purchase but sometimes it can be quite hefty lump sums. It might take a month or so to get the money but it turns up eventually! Cashback credit cards are great paired with cashback sites or just for day to day purchases. Buying all your food and petrol with one of these can give a nice little windfall every year when they pay out the cashback!
Are you being hounded by creditors and desperately trying to keep your house and / or your sanity?
- No, thankfully it’s not that bad and I’m managing to pay everything on time
Well done, keep it up! Don’t forget to keep track of your credit score and see if you can switch some expensive debt onto 0% cards so that you can pay down the overall outstanding amount quicker and pay less in the process.
- It’s not quite that bad yet but I’m getting a little worried, keeping up with the minimum payments is a struggle.
Don’t worry, there are always alternatives. Don’t forget to keep track of your credit score and see if you can switch some expensive debt onto 0% cards so that you can pay down the overall outstanding amount quicker and pay less in the process. Some form of debt consolidation might help you to maintain your current position of “no defaults” by reducing your monthly bills and giving you a bit of breathing space. Check out all the alternatives to traditional debt consolidation first though, some can be very costly!
- YES!! Please help me!
Before you panic and turn to bankruptcy or a debt relief order, make sure you’ve exhausted all your options on the checklist, even when you have tried all that, there might be other avenues to pursue. Just stay calm and get some independent professional advice on your options as well as some personal support to help you though these challenging times. There is no point getting through all this if you’ve made yourself sick with worry in the process is there? You might even have a case for legal recourse if you are being illegally pursued by your creditors; it’s definitely worth investigating before you make such a big decision with your longer term financial health.
Download the FREE checklist so that you can work through all your options systematically. At least then if bankruptcy turns out to be your best solution, at least you will know that you’ve exhausted all your other options first.