Debt is an embarrassing, and somewhat difficult problem to manage. No one is proud of being in debt, and because of that, people don't often seek help. But that's the biggest mistake you can make - if you are experiencing financial problems, whether you're in need of funds or in need of some organisation, it's important to ask for help, so that you can tackle the problem in an effective manner and prevent it from getting worse. Here are some of the avenues you can pursue to seek the help you need.
1. If You Don't Know Where To Start: Debt Advice
First thing's first - if you've never attempted this before, debt management can be daunting. How are you supposed to go about starting this, and what are your options? Are you even informed enough? But there is no reason to panic - free debt advice is available from plenty of sources, including places like National Debtline. You can go on the website for free debt advice with no judgment. You can ask questions and get honest advice and help for your financial problems.
2. If You Have Limited Funds: Budgeting
Of course, limited income is a major problem right now, especially if you're under 30. A massive - and rising - number of young professionals are renting instead of buying homes, putting off having kids, etc. simply because they are lacking in funds. They also have more debt than the previous generation did at their age. It's hard to cover your loan instalments when you have limited funds, so what you need is a budget.
Budgeting can save you and provide all the help you need when it comes to managing your debt. Sit down and make a list of all of your necessary expenses and all the ones that are luxuries or that can wait. Prioritise your debt repayments and stick to your budget for other expenses.
3. If You Spend Too Much: Debt Tracker or Calculator
Another solution to your debt management problem and your expense problem is to use an automated tool, such as a debt tracker or calculator. Especially if you often go over your budget, or you simply have trouble keeping track of your expenses, this can be a wonderful, very clear way of keeping things updated.
The Money Advice Service has multiple such tools made available on their website, free of charge, so you can make use of them whenever you need them. There is also a separate section on debt, so if you need more help, you can read all about it.
4. If You Can't Manage Your Loans: Consolidation Loan
Finally, if your issue isn't so much the fact that you can't afford to pay off your debt, but that it is difficult to manage logistically, there may be a very good solution for you in the form of a consolidation loan. Like the name suggests, a consolidation loan takes all your different types of debt and brings them together in one big loan.
The advantage of this is that you no longer have to pay several loans in different places, at different rates and on different dates. It's much easier, more convenient, and simpler to keep track of one loan. In addition, you have the opportunity to reduce the total amount of debt you have or the interest rate.
All in all, if you're struggling with debt management, there are several things you can do to make things easier for you. From getting free advice on how to organise your finances better to special tools you can use and even a new loan that can take some of the pressure off, debt management can become easier than you thought if you just look for the right solutions.