How To Get Your Your Money And Debt Under Control
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Word Count: 356 Character Width: 60 Resource Box: Debt-Free For
Life
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How To Get Your Your Money And Debt Under Control
- by Steven Erlick MA
(c) Steven Erlick. All Rights Reserved. http://www.BookShaker.com
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If you are struggling with money and debt here are some things
you can do to help. Admit to yourself that you have to much
debt. It is very easy to strugle on each month robbing Peter to
pay Paul without getting to grips with the problem. If you are
spending more than 10%-15% of your income (excluding a mortgage)
on debt repayments you are probably financially stretched. List
out how much you owe on credit cards and loans etc. It will come
as a shock so be prepared! Also list out what the repayments are
on each. Check if your spending on debt servicing is higher than
10- 15 % of your income.
If it is, here are some options to sort out the problem. If you
can, increase your income. You may be eligible for government
money such as tax credits or help with council tax or rent if
you are on a low income. Alternatively you may be able to get a
part time job or rent out the spare room.
If it is not possible to increase your income you need to look
at ways of reducing your spending. Are there things you can cut
down on? Start buying cheaper products at the supermarket. It is
amazing how much your grocery bill can be reduced by buying "own
brands".
If increasing your income or reducing your expenditure is not
possible or insufficient then write to the people you owe money
to and explain the situation and ask them to suspend the
interest so that you can start to reduce what you owe them. This
is known as an informal arrangement. More formally you can
arrange for a legally binding agreement with your creditors
called an Individual Voluntary Arrangement. This will often
reduce the total amount you owe by a considerable amount. The
other main way of getting rid of uncontrollable debts is
bankruptcy, this has been made easier and simpler of late. You
should get some advice about these options from the local
Citizen's Advice Bureau.
The main thing to do if your are struggling financially is to do
something about it, before it gets worse.
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