How To Avoid Debt Problems And Think Before You Spend

Avoid major debt problems by working out a budget and sticking to it. One of the worse times for overspending is Christmas and birthdays, so if you arrange a debt plan or a budget at home, make sure you stick to it 365 days of the year. If you are guilty of overspending, below are some top debt help tips:

• Debt Management Plans And Debt Action

Debt management plans and debt action plans can be started at home. Work out your outgoings and income and list every debt you have, even minor ones. Prioritize your outgoings, and make sure your mortgage, gas electricity and council tax payments are covered. Make a list of credit card debts and work out which ones need to be paid first –which ones have the highest interest rates.

• Aprs Annual Percentage Rates

They can differ from one credit card provider to another, so check which are the cheapest. You could make huge savings by switching all your credit card debts onto one card with a 0% balance free transfer.

• Always Pay Off Debts On Time

Always pay off your debts on time, and contact a debt management company as soon as possible if your debts are becoming unmanageable.

• Bank Overdrafts And Debt Help

If possible, don´t overdraw at the bank as it may leave you seeking debt help options. If you don´t think you have funds in the bank to make a payment, advise the bank as soon as possible. If you overdraw you could be charged a high daily amount while you are in the red, plus an initial fee for overdrawing in the first place.

• Debt Consolidation Loans And Debt Advice

Before applying for a debt consolidation loan seek debt advice from a regulated debt specialist company. Debt consolidation needs to be understood before you apply for a loan, as some terms and conditions can plunge you further in to debt. You may be better off applying for a debt management plan or an IVA rather than a debt consolidation loan.

• Be Realistic To Eliminate Debt

When you start to arrange a budget for debt, work out a realistic debt plan to eliminate debt. Don´t add to your debt problems by spending more on credit cards and store cards, and always seek professional help if you have serious debt problems.

• Store Card Debts And Credit Card Debts

Overspending on credit cards and store cards creates more debt in the UK than anything else. The interest applied to store cards is astronomical so don´t be tempted by the offers of money off vouchers, dream holidays or any other ´unbeatable prizes´ when taking a trip round the supermarket. Store cards equal debt.

• Honesty Is The Best Policy For Debt Solutions

Be honest with your creditors about your debt problems and it will be easier for you to find debt solutions. Open the bills, contact your creditors and make yourself aware of how much debt you have. If you feel you need expert help and advice about debts and debt solutions, contact a regulated debt specialist company who will point you in the right direction, and explain the debt options open to you.

• Reduce Your Budget And Reduce Debt

By working out a budget you will see immediately where you can reduce spending.

• Ask For Specialist Debt Help UK

However hard things are, and however serious your debts are, you can start to solve them immediately if you ask for specialist debt help in the UK. Debt management companies will give you options for solving debt and you can start to eliminate debt from your life forever.

8 Tips To Reduce Your Debt This Holiday Season

The Holiday Season is the busiest time of year, full of family and friends, good food – and spending. Between the parties, travel to be with family, and gift-giving, it’s practically inevitable you’ll be dishing out a lot of dough. But you don’t have to go into debt during the Holidays that leaves you financially hungover in January and behind for the rest of next year. Plan ahead to minimize your debt, or better yet, not rack up any at all! Avoid the debt collectors by following these 8 simple tips to keep your Holiday spending on track:

Get On A Budget

Start the season out right by planning how much you can reasonably afford to spend and limit yourself to that, no ifs, ands, or buts. This means you’re going to have to budget for those unexpected holiday expenses that tend to pop up.Treat All of Your Expenditures Like Cash – Don’t set yourself up for failure by walking into the glitzy shopping mall with three credit cards and no idea of what you plan to buy. Preferably pay in cash, but if you use a credit card, treat it like cash – plan to pay off the balance at the end of the month to avoid incurring interest fees.Don’t Use the Store Retail Cards – These may be tempting, but don’t fall into the habit of applying for store credit cards simply for the 15% off coupon they’ll give you. Each time you apply for one of these it will hit your credit report and can make you look desperate for credit lines. Plus, these cards generally carry high interest rates – often at percentages in the 20s! Steer clear of this shiny Holiday shopping lure.Be Creative With Your Gifts – Think from the heart instead from the wallet for a change this season. Are you an aspiring artist? Do you have the best gingerbread recipe in town? Consider something homemade, sentimental, for a gift. Chances are you’ll save money and your loved one will appreciate the gift all the more for it!

If you’re like most Americans, you will manage to rack up a measure of debt during the Holidays despite your best efforts. Don’t despair; you can still right the ship financially without spending the whole year trying to pay it off. It will just take a little planning:

Set A Definite Payoff Date

Try to put a plan in place right away to pay your debt off as soon as possible. Maybe it’s March 31st, the end of the first quarter, or maybe you want the debt gone by the time the kids are off school for the summer. Stick to your plan and know exactly how you will pay it off in order to make all you financial decisions fall in line.Scrimp and Sacrifice Where You Can – Are you getting a Starbucks every morning before work? Make coffee at home. Are you eating lunches out during the work day? Bring a sack lunch. Cut down on dining out, entertainment, and the cable bill – wherever you can. You probably received some gift cards during the Holidays, so make good use of those.Pay off Your Debts in a Smart Order – Plan to pay off your cards with the highest interest first, making the maximum payment you can afford on those and just the minimum payments on the others. Work your way down the line with your cards so you can avoid paying high interest rates if possible.Plan for Next Year’s Holiday Season – It’s okay if you take advantage of post-Holiday sales, so long as you’re doing it for the right reason. That cashmere sweater that went on sale for $90 from $120? Probably not the best choice. But decorations, household goods, and practical things you can save until next season will help you curtail spending next year and stop the revolving cycle of debt.

There’s No Way To Get Around It

You’re going to be spending money during the Holiday season. But if you plan early and spend wisely, you can make sure that this Holiday season is one full of merriment instead of financial misery.