How to manage your debt

How to manage your debt

As soon as you buy a place to live most likely you will be entering into a world of debt. But debt needn’t be a nightmare to get to grips with.

MyFamilyClub’s Gemma Johnson, went to visit Neba and her family to share tips on how we can control debt without letting it control us.

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Here are some ways to control your debt:

Keep a log of your payments

The first hurdle to jump is to face up to your debt.  Try writing down all your debts including lump sums and monthly payments so you can prioritise and plan a payment schedule.

Look around for cheaper credit

If you’re currently paying interest on credit card debt, there could be ways round this. A short-term solution could be to shift your debt onto a card offering 0% interest on balance transfers for a limited period.

If you manage to reduce your minimum monthly payments, continue to pay at your previous rate to reduce the debt.

Make a budget

By setting a monthly budget, analysing  your debts, and bringing down your expenditure you can tackle your debts  in the right order. Set realistic goals and ditch any non-essential spending.  Start with the debt with the highest interest rate first and make minimum payments on the others.

Negotiate an achievable payment plan

If you think you may not be able to make your next debt repayments, let your creditors know as soon as possible. By talking to them in advance they may be more understanding than you’d imagine.

Seek help

There are lots of organisations that specialise in giving free help and advice. National Debtline, the Consumer Credit Counselling Service, Christians Against Poverty, or Citizens Advice are all good places to start.