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For every day that goes by, UK consumers fall another ?27m into debt. Many of those suffering from mounting debt choose to ignore the problem, in the hope that it will “get better”, or “go away”. Some simply do not know how to approach large amounts of debt from multiple creditors.

As a rough guide though, if your debt repayments eat into more of 20% of what you are bringing home each month then you are in what is known as the “danger zone”, meaning you must take action to ensure your finances are not damaged further.

If you are being contacted by creditors regarding late and/or missed payments then it is best to get in touch with them to inform them of your situation. This will let them know that you are taking control, and they may draw up more manageable monthly repayments for you.

Following this, you need to work through your repayments and start budgeting, spending only what you need. This is usually best achieved by setting yourself realistic goals with regards to repayments and taking out a set amount of cash that you think you will need at the beginning of each week.

In order to make sure you don’t over spend or “give into temptation” then it may be an idea to leave your credit and store card(s) with someone you can trust.

As well as day to day expenses it’s important to look at some of your larger expenditures, such as utility costs and the credit card(s) and loan(s) you are repaying. You may find that you can dramatically cut your monthly expenses by moving to other lenders and utility suppliers.

Also, if you are a homeowner, then mortgage repayments are likely to be your largest monthly debit. As part of your debt management plan, talking with an IFA should help you determine if you could save money by remortgaging, further helping your debt management. The internet is an excellent resource for debt management tips.

Article Author :Liam_Gerken

Tags: debt repayment, repayment, mortgage repayment, debt management

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Tags: debt management, debt repayment, mortgage repayment, repayment