This is OK, it happens to virtually everyone. It is stressful, but there is no harm done as long as your debt is short-term and affordable. But, the moment things start to get out of control you need to seek advice from Creditfix, the Citizen’s advice bureau or an independent debt advisor.
If you do not, it is all too easy for things to start to slide away from you. The worst thing you could do is to let more debt build-up. The longer you leave things the more behind you will get in your repayments. This, in turn, will lead to fees and additional interest being charged. Very quickly the amount you owe will grow. The more it does the harder it will be to pay back. I know that is kind of obvious. But, when we are in trouble, we all have a tendency to try to ignore the facts. It is surprising how good we are at doing so. This article explains why that is and tells you how to avoid getting trapped by your inability to face the issue full-on.
As well as seeking advice, you need to take all of the action you can to get back in full control of your finances. That means tracking everything you have got coming in and out.
Even if you are already doing this, it is worth reviewing your approach. Often, you will find that you are able to improve your process. For example, if you are currently marking most of your cash withdrawals down as general expenditure you will want to stop doing that. You could easily be spending several hundred pounds on drinks, snacks and sundry items.
So, you will still only have a vague idea of where that money is actually going. It means that you could easily miss the fact that your habit of drinking an average of 2 cups of coffee while out and about is probably costing you about £303, per year. Much more, if you have a snack with it most times. If both you and your partner are doing that, there is at least £600 you could use to pay off your debt. Instead of buying coffee while you are out, you could make it at home and take it with you.
It is well worth downloading and trying out some of the latest money management apps. They are super simple, which means that you are more likely to use them properly. When you actually track every penny you will quickly see where you can save money.
If you follow the 3 simple steps above you will soon regain control. Once you do that you will get yourself out of debt fairly quickly.
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