How to get on top of your debt quickly

Not so long ago, I wrote an article about why so many of us fail to seek advice, at an early stage, about paying off our debts. A lot of you read it, so I thought I would write more about dealing with debt. Once you have decided to take action, the quicker you do so the more likely it is you will successfully become debt-free.

Here are some things you can do almost immediately. Like all things in life taking the first step is the hardest part. Once you have done that, things gain momentum and getting to your goal becomes a lot easier.

Seek financial advice

Top of the list is still getting professional help. Insolvency specialists like Creditfix can help people who have high levels of debt. They can arrange things like IVAs, Trust Deeds and if all else fails bankruptcy.

Even if your debt levels are not high it is still a good idea to get some advice. In most places, consumer associations and debt charities offer a free service.

Generally speaking, they are a good place to get advice. Knowing what your options are is always a good first step when you are trying to tackle any problem. You can go online immediately to find your local debt charity or consumer association and start learning about what your options are.

Assess the size of your debt

It is important to understand the size of the problem you have. So, if you have not already done so sit down and work out what you owe. Usually, the best way to do this is to use a pen and paper. 

List out who you owe money to, the outstanding amount, rate of interest (if you know it) and how much you are supposed to be paying back each month. If you get a bit lost, try using a financial calculator instead. You can find out about them and how to use them, from this page.

Understanding the size of the problem will help you to work out which approach is likely to work best, for you. Doing this can be daunting, but at some point, you are going to need to do it anyway. So, you might as well get it done right away.

Start to learn new habits

In all likelihood, the size of your debt will come as a bit of a shock. Once your debts start to get out of control, it is all too easy to lose track. Most people do. Instead of worrying about it use that feeling of shock to motivate yourself to stop spending too much. 

Immediately download a spending tracker app like Wally and start using it. Within a week or maybe too you will be able to spot areas in your life where you are wasting money. Then all you need to do is to stop those wasteful habits. There will be slips. Every now and again you won’t be able to resist temptation. Don’t let this stop you in your tracks. Just start afresh. Each time you do you will go for longer without wasting any of your money. Pretty soon, your bad habit will be replaced by a good one.

This is a collaborative post.