6 TIPS TO GET OUT OF MIRE

Don’t be tempted to spend more Stop spending and building up more debt. Try to live within your means. Don’t take credit cards out with you. Hide them so you only use them in an emergency. Know where you stand Get all of your paperwork together – credit cards, store cards, loans and bank statements. How much do you really owe? What are the monthly repayments and how much interest are you paying? Add them up so you know the total amount – it can be a shocker when people realise just how much it is costing to repay debt. Do a budget How much do you have coming in and what’s going out? Go through each of your outgoings and see if you can cut back on any, or switch bills such as energy or insurance on to better deals. Work out how much you have left after paying bills so you can see what you have left to pay off debt. Don’t tackle everything at once Focus on the debt with the highest interest rate and try to overpay to get it cleared quicker. Paying an extra £10 or £20 a month above the minimum on credit cards will make a big difference in helping to actually pay off the debt, rather than just the interest. Switch expensive debt If you have credit card debt think about moving it to a 0% balance transfer deal. For example, MBNA offers 42 months with a 2.79% transfer fee, Halifax 41 months with 2.59% fee and Sainsbury’s Bank 35 months with 1.5% fee. But don’t be tempted to spend on the card, use it to clear debt only. If you don’t feel confident you can be strict and pay down the debt each month, then consider taking out a personal loan to consolidate your debts into one monthly repayment. This will give you a structured way out – just ensure you can make the repayments easily. Don’t struggle alone If you can’t take control of your finances seek help straight away. Don’t put it off as things will only get worse. The quicker you get help the more options you will have. There is lots of free and independent help available. Book an appointment with a debt adviser at your local Citizens Advice or visit citizensadvice.org.uk Call the National Debt Helpline on 0808 808 4000 Contact StepChange Debt Charity on 0800 138 1111 or via stepchange.org Debtwizard.com offers lots of guidance and advice on ways out of debt.