As part of Debt Awareness Week 2022, experts are trying to improve people’s knowledge of how they can manage the debt they accumulate. Around 30% of Britons are struggling to pay their bills and may feel overwhelmed by the pressure that comes with growing arrears.
Managing your debt can basically be divided into two sections. The first concerns “understanding your finances”.
Tackling arrears is a task that is only made more difficult if you don’t have a clear idea of what is going on with your money.
Sitting down to assess your income and expenses can take time, but it will save you a lot of future work and uncertainty.
Paul Stringer, director of Norton Financeexplained to Express.co.uk how debt can quickly pile up if people aren’t properly informed on how to manage it.
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3) Make the minimum payment
In the scenario where paying off your debt proves to be a struggle, do your best to make the minimum payments.
Not only will this avoid late fees, but it will also prevent you from having an impact on your credit score.
Conversely, if meeting the minimum payment is difficult, go directly to the creditor to ask for an extension, rather than whipping out a credit card and getting into more debt to make the payment.
Mr. Stringer added that a possible solution for people with several loans to repay is debt consolidation.
Going this route would pay off your existing loans and combine your debt into one source with monthly repayments because you only owe money to the debt consolidation provider.
In fact, having one provider can make it easier to deal with your debt, as there are fewer payments to track and you could save money on interest and late fees.
Still, debt consolidation isn’t necessarily the solution for everyone, so it’s important to make sure you fully understand your financial situation and speak with a loan provider to assess your options.