Today, borrowing money has become a part of everyday life and most people that you speak to will have some sort of credit, whether it be a credit card, a car on finance, a personal loan, or even a smartphone contract.
However, paying off several debts, along with making sure that you have enough money aside for priority bills, living costs, savings, and fun, can be a lot to juggle.
Since failing to repay your debts can land you in a lot of financial trouble, many people simply try and manage, believing that there is little that they can do about the situation except for to try and pay the money back. Thankfully, there are several steps that you can take to try and get your monthly debt repayment amounts down.
#1. Negotiate with Creditors
If you are really struggling financially, then the good news is that most creditors would much rather help you out by allowing you to repay a monthly amount that is affordable for you, rather than you be unable to pay them anything at all. Negotiating with your creditors may seem like a scary prospect, but there’s really nothing to worry about. So long as you can show your creditor that you want to work with them to get the debt repaid eventually, most will be more than cooperative and understanding of your situation.
#2. Consider Debt Consolidation
If you have a few lines of credit but are still able to borrow further money, then you might want to consider taking out a loan, credit card, or even look at payday loans UK for the purpose of consolidating your debt. A debt consolidation loan works well for many people since once you have paid off all, or at least the bulk of the debts with your new line of credit, your monthly payments will be significantly reduced, as you’ll only need to worry about paying one loan back. If you’re looking for a reliable option, the payday loans on this website may be able to help.
#3. Balance Transfers
If you are in debt but still have a good credit rating, then you might want to consider transferring the balance of your credit card onto another. Since many credit cards come with an initial interest-free period, this can be a great way to reduce your monthly repayments, whilst driving down your total debt. However, bear in mind that some credit cards will only allow the interest-free period for purchases rather than balance transfers. An alternative would be to look to transfer to a card with a lower APR.
#4. Pay off Larger Amounts
If you are currently paying off the minimum amount of each debt each month, then getting rid of your debts is likely going to be a lengthy process. One way of reducing your payments and speeding up the total time that it will take to clear the debt is by paying off larger amounts whenever you can. Each month, work out if you can afford to pay a bit more and do so if possible. This is often more effective than putting money aside in a savings account whilst you’re in debt.
Did these tips help? We’d love to hear from you in the comments.