Debt Help Tool Kit
The debt tool kit is designed to help you move from where you are to where you want to be in the easiest, simplest and fastest way possible.
We are always working to upgrate our content and our tools so what you see here may change, be revised or simply get upgraded to something that we hope will be more useful to you on your journey to debt freedom.
The tool kit is really your first point of call, it’s all about get your ducks in a row.
We all know the basics of paying off debt, “just spend less and save more” but as with the delightful and now frequently disproved dieting advise of “move more and eat less” it simply isn’t that easy!
My aim with this tool kit is to help you get organised, to not panic about the size of the mountain you have to climb until you really know how big it is, and even then there are always solutions.
It’s so much harder to plan your journey out of where you are if you are not entirely sure where that is.
Let me explain what I mean.
If for example you have a few credit cards and the odd store card but you don’t know where they all are or what you did with the statements, you just know that they take money our of your account each month. You’re not worried but it bugs you a little that all your hard earned money keeps moving out of your bank account and before you know it you’re stretching your last few $ or £ to may it to payday.
What if you could get all your money organised, know exactly who you owe what to and most importantly HOW MUCH THE DEBT COSTS, maybe you could get some cheaper or 0% debt that would help you pay it all off LOADS faster and reduce how much you pay in interest.
You might absolutely HATE playing with money stuff but treat it like the best part time job you’ve ever had. Just a few hours one day each week could save you soooooo much money over the course of the year. Even if it means you have to spend the first week or 2 calling up the credit card or loan companies to ask for an up to date statement of account and a CLEAR idea of the annual interest rate. Sometimes, if you tell them you are looking to switch over to some lower cost credit, they might even do you a deal there and then on the phone. It never hurts to ask, just so long as you don’t tell them you’re having trouble paying, they don’t like that!
So, step 1 is to know your debts. Download or print off the debt tracker and get to work on what you owe, don’t miss anything out, just get it all on paper (or in excel!) and look at your mountain.
There may be some things that jump out at you here like some expensive debts that are charging HUGE sums of interest every month and a small saving balance that doesn’t pay you anything at all, that could be a nice quick win; use the savings to pay the debt, cher-ching – instant money maker!
Rebalancing the debt equation could take many forms depending on your situation, these might include:
- Using savings that are earning little or no interest to pay off expensive debt
- Getting cheaper debt so that the “cost of debt” is less and is hopefully LESS overall than the amount of income you can earn from that money being in a savings or investment fund.
- Do steps 1 & 2 PLUS find [safe] investments that earn you MORE money than your debt costs you. (take a look at this article for more information on how to make money from debt).
Hopefully, when you do manage to check out your credit rating and find out that you don’t actually look that bad and you might be able to get some 0% credit after all and pay off those really heavy expenses with some nice low cost debt.
If you are already feeling overwhelmed or this really doesn’t resonate with you, take a look at the debt quiz, it will help to point you in the right direction for your particular circumstances or you might need more psychological support, that fine, get into a free online support group or get some one to one councelling and give yourself a huge high 5, just facing this is truly amazing, well done!
Debt Help Tool Kit - In Action!!
OK so now you know your debts, the next step is to get to grips with your budget. To do this follow the 7 simple steps guide HERE, or look at the more comprehensive action plan HERE that will give you steps depending on where you are in your debt free journey.
If you feel like there is something missing here that you would like to see, please leave a comment or get in touch and we will do our best to fix it.