Debt Management Plans – What You Need To Know

It’s a sad fact that the cost of living is forever rising. The price of a two bedroomed flat in the UK averages at around £650 per month. Some people barely even earn that, so you can imagine how difficult things have become for people in all walks of life around the UK. The number of people in debt is at an all-time high, and being able to manage debt is becoming harder with each passing day. This is due to a vast array of companies offering easy routes out of debt when in fact, they’re only in it to make money out of you. Rather than falling for these false promises, check out how you can create your debt management plan and also who really can help you.

Debt management plan - man in a blue suit putting his wallet away

Photo by Andrea Natali on Unsplash

What you can do to get out of debt

It sounds pretty obvious, but the first thing you need to look at is what you’re spending each month. More often than not, you’ll find subscriptions that you’ve long forgotten about still being taken out of your bank. If you don’t have access to internet banking, head to your nearest branch and speak to an advisor who can help go through your direct debits and standing orders, and see what can be eliminated from your outgoings.

The next step for your debt management plan is to look at how you’re spending your money. While food from Waitrose might seem like it’s of better quality, groceries are all the same from each shop, and it’s up to the supermarket owners to decide how much they’re selling it for. Let’s face it, you’re going to be spending one hell of a lot more shopping at Waitrose than you are at Aldi or Lidl, so why not take into consideration how you could eliminate even more spending from your day to day lives; freeing up money to help get yourself out of debt.

Another thing, you should check your credit report as often as possible. Things can change in a matter of days and completely change the way that companies view you as a person. Something as simple as missing a payment can turn your credit score on its head. The great part about using credit report companies is that they can help you with useful information about what you’re doing wrong and why it’s a problem too. They will also focus on the good things you’re doing too, and give you advice on how you can continue growing your credit score.

What help you can obtain for your debt

The first thing that you need to do is speak to professionals who aren’t your money. Companies like National Debt Advice offer debt management plans for all kinds of situations. It doesn’t matter if you owe one company or twenty, they can create a solution that’s affordable for you to pay back. They will take your priorities in life into consideration, like children or even the commute to work and work around that to create the perfect debt management plan for you.

Take into account this information and apply the advice to your life and you’ll soon be well on your way to a debt free life!

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