When finances are tight, making a meaningful dent in your debt can feel like an impossible task. Unfortunately, there is no escaping the fact that, if you want to increase your repayments, then you will either need to cut you outgoings or increase your income. Read below for some tips on how to do this.
Create a Budget or Spending Plan
Creating a budget can help you to highlight those areas you may be able to cut back on or get rid of completely e.g. that gym membership that you never use! Setting yourself spending limits can free up income that can then be put towards clearing debt. So, if you get paid monthly, setting yourself a weekly spending budget can help you to pace yourself and avoid overspending at the beginning of a month.
Financial Options
Under certain circumstances, accessing other credit options can help to clear debt in the long term. Consolidation loans can help us to move our debt into one place and pay it off over a longer payment period. Unfortunately, this would likely mean that in the long run, you would pay more interest, but for some people, knowing that you can afford your monthly payments and have a decent quality of life makes this an attractive option.
Debt Relief
If you have exhausted other options and you really cannot afford to repay those debts, then the next option is to seek debt help.
Options like an Individual Voluntary Arrangement can allow you to pay only a portion of your debt back and for the remaining balance to be written off.
Take a look at our IVA page to find out more.