HOW TO GET OUT OF DEBT EFFECTIVELY

If you’re someone who wants to get out of bad debt and stay away from it, read on and consider the following tips on how to get out of debt effectively.

Don’t borrow more than you need.

If you’re going to get a loan to pay off debt, make sure that you’re not getting more than what you need. It’s easy to borrow money especially if you can get easy approval. But the borrowed money can be spent on unimportant things and that can get you in trouble. Always consider the repayment responsibilities you will have later on.

Communicate with your lender.

The biggest mistake that a borrower can make is hiding or ignoring lenders who try to contact them about their debts. In the event that you can’t make your repayment on time, the best thing to do is to speak with your lender and explain the situation. Ask for an adjustment in your payment schedule so you can catch up with your debts.

Get a balance transfer credit card.

Get a balance transfer credit card with a low interest or zero interest to help you catch up with your credit card debt. Combine all your credit card debt into a single credit card and save a significant amount of your budget by not paying high rates of interest.

Stop using your credit cards.

If you’re stuck in debt, it’s best to keep yourself from continuously using your credit card. Doing so will only put you in a worse debt situation. Some people even freeze their credit cards or lock them up to avoid using them to shop. If you’re having trouble controlling your credit card use, don’t hesitate to ask for professional help.

Challenge your lender’s agreement.

Take out your contract and review it for possible violation of your Consumer Credit rights. For instance, missing details, false calculations, misleading statements – these are possible arguments that you can use against your lender. If you win the case, you can arrange for a better debt settlement. Ask the Citizens Advice Bureau for more information on this matter.

Budget your money.

Having a written budget plan is an important step for you to get out of debt. A budget plan will not only enable you to use your money more wisely, it would also help you keep track of your spending and stay away from unplanned expenses.

Seek professional help.

Seeking credit counseling from a legitimate agency may be necessary especially if you’re having trouble managing your finances. Just make sure that you’ll be working with trusted credit counseling service.

Here is a list of agencies that you can turn to for help in finding a solution to your debt problem:

• Community Legal Advice – Community Legal Advice Telephone: 0845 345 4 345
• Consumer Credit Counseling Service – CCCS Telephone: 0800 138 1111
• National Debt line – National Debt line Telephone: 0808 808 4000
• Lets Talk Money – a free Government helpline: 0800 0121656