3 steps towards a debt management solution

Finding a solution to your debt management means looking at your lifestyle and being prepared to make changes.

Money is pivotal to how we live our lives. It can offer us opportunity or it can bring us stress and anxiety. If you are struggling with debt management, here are three steps to help you find a solution to your debt.

1. Easy Credit

   It is much easier to get into debt than it is to get out. With all the unsolicited offers of easy credit, loans and credit cards that come through your letter box every day, it's easy to see how getting into debt has become 'normal'.
   • If you have store cards or credit cards, get rid of them! Store cards in particular have high interest rates and can get you into debt quickly.

2. Get disciplined with yourself

   • Stop overspending. Before you decide to buy that new outfit wait a day to find out if it is something you really need in your life. Putting time and space into the equation can often make you realise that you don’t need that new outfit after all – even if you want it. Never impulse buy. Separate life’s necessities from your wants and desires so you can keep impulse buying in check.
   • If you do shop for 'retail therapy' ask yourself what are you trying to compensate for? Will that new pair of shoes really make you feel better in the long run? Are they worth the heart ache and hassle of finding a debt management solution later on?
   • Write down what you spend. Seeing it on paper can make you realise where you are going wrong, and help your self discipline.
   • The key to any debt management solution is budgeting and repayment plans. Commit as much money as you can to paying off debts once essential expenses are covered. Pay your debt with the highest rates first so less of your money is spent on interest.

3. Be pro-active

   • Find a debt management solution involves strategy - pay off the debts that are the most risky first - especially if they put your home or assets at risk.
   • Maximise your income. Ensure you are receiving all the benefits you are entitled to claim such as tax credits. Look into savings options available to you on services like council tax. Even paying your utility bills on-line or by direct debit can save you money. Shop around - it is a competitive market and you may be able to get a better deal on your utility products. Careful management of your money could offer a solution to debt.
   • Find an independent financial adviser. Many will offer a free consultation session to help you find a solution or sort out a debt management programme.

For help in finding the correct debt management solution for your situation, visit MRA Debt Help at www.mradebthelp.co.uk, or call 0800 612 92 23.

For independent financial advice, visit our sister company, Mike Robertson Associates, at www.mraltd.com. You can email an independent financial adviser for professional help, or call 0870 803 1995.