How to Get out of Debt

How to Get out of Debt

Use this guide to find essential information about how to get out of debt, including ways to reduce debt and how to get help if you’re having debt problems.

If you’re starting to feel overwhelmed by your debts, you’re unable to pay them off, or there’s an increasing risk of being taken to court by the people that you owe money to (your creditors), then you should think about seeking professional advice to help you get control over your debt.

How do I know if my debt is a problem?

Being in debt means dealing with difficult emotions as well as keeping up with your repayments, so it’s best to take control of your debt situation now.

Debt management is about acknowledging how much debt you’re in. Some debts can be dealt with by budgeting carefully, other larger debts may need a more formal debt solution.

How can I manage my debt?

To start with, you need to work out a budget based on how much you earn, how much you owe and all your essential expenses. Your budget will show you how much disposable income you have.

If you’re spending too much on your monthly utility bills, paying too much interest on your credit cards or losing out on benefits or tax savings, there are lots of small adjustments you can make to your lifestyle to save money.

If you can’t afford the minimum repayments to your creditors with your current income, or if you’re in a cycle of borrowing more money to repay your debts, then it may be time to seek advice on formal debt solutions that can help you get back in control.