Getting into debt is easily done, especially as the current loan rates are so low, and deals seem appealing for people struggling at the end of each month to make ends meet. Getting out of debt, however, can take a long time, and feel overwhelming.
In the short term, taking out extra credit on loans or credit cards can ease the burden, but within a short space of time, you’ll realise you’re paying off even more than you were before, and feel the pressure of your debt increasing. Anyone in debt will know how stressful and unpleasant it can feel, and will want to find a way to get out of a debt for good. Below we’ve highlighted a simple step by step plan that you can start today to help you on the road to a debt-free life.
Make an Inventory
You need to know where you are currently to create a realistic plan with time frames in which you are going to be able to pay off your debt. Start with all of your bank loans, then any other debts you have, including overdrafts, family or friends that you owe and store cards. Once you have made a record of everything you need to pay off, you’ll be in a clearer position to start taking action to clear your debts.
Lower Your Rates
Once you’re in debt, one of the most frustrating things you’ll have to face is the extra interest you’re paying off from your credit. But you might be able to move your loans to secure lower, more favourable rates. Look into your options with low rate balance transfer credit cards, and use free credit score sites to understand exactly what your options are. If you’re not sure where to start with looking for lower interest rates, to minimise the interest you’re paying back, it could help to speak to a professional in Debt Advisory Services (Scotland) who will ensure you get the best rates for your credit score.
If you’re living in Scotland and looking for help reducing and clearing your debt, then debt Advisory Services (Scotland) are here for you. Contact us today for more information.