Clearing your debt and staying on track financially

Us Brits are no strangers to debt. Last year, I shared with you the fact that most of us get into debt at Christmas and don’t pay it off until about April. Over the past couple of decades, as a nation, we have got into the habit of living “on the tick”. 

Once you start using debt regularly, it is all too easy for things to get out of control. You kind of forget how dangerous it can be and start flexing your credit card too much and too often. If you are not careful you can easily reach the point where you can no longer afford the repayments and are in too deep.

Where to get help if you are deeply in debt

In that situation, insolvency specialists like Creditfix can help. They can share with you several ways to consolidate and pay down your debt. With their help, you can choose the approach that is best for you. 

Managing debts you can afford to pay back

If your situation is less serious, you may be able to handle paying off your debts yourself. Generally speaking, people who have enough of an income to cover their repayments can handle things without needing to employ anyone to help them to do so. There are plenty of digital tools that can help you to get on top of things and pay everything off.

Tools to help you to quantify your debt

The first step is to quantify how much you owe. One approach is to do this using pen and paper or a spreadsheet. This can work well. 

But, if you owe lots of different people money you are likely to be better off using an app like the IOU-Debt Manager app. It is not hard to use and unlike a lot of other debt management apps; there is the facility to include money you owe to friends and family. This means that you really do have a complete picture of what you owe and how close you are to paying off everything that you owe.

Tools to help you to track your spending

Tracking what you spend is really important when you are trying to clear a lot of debt. Some people make the mistake of believing that they only have to do this once they have paid off what they owe. 

In fact, if you are not already doing this you really should start doing so straight away. Knowing where your money has gone enables you to spot where you are overspending and rectify that issue. The cash that you save by doing this can then be channelled into paying off your debt that bit faster.

Tools to help you to stay out of debt

Once you are clear of debt, as much as possible, you want to stay that way. Tracking your spending will help a lot with this. But, the key to staying out of debt is becoming a regular saver. This article explains how to change your mindset so you can start saving money rather than just spending it.