Debt Help in the UK: How to Get Out of Debt

When you’re almost crying for debt help, it can feel like there’s no way out. Luckily, help is available in the UK to help you get out of debt, whether you’re trying to pay off student loans or get out of credit card debt. If you’re struggling with payments on debts and just don’t know where to turn, these tips can help you find Debt Help in the UK and make sure your financial future looks brighter than ever before.

Connect with debt expert organisations that give debt help in the UK

If you are in debt and unable to see a way out, it is time that you get in touch with some trusted debt advisers. Here are some organisations that you should connect with as a first step.

Stepchange.org – Get free debt advice from them so that you can deal with your debts and get all the required support you want. You will be recommended a range of debt solutions that are practical and focus on your unique debt situation.
Citizensadvice.org.uk – Start dealing with your debts with their help. Get all the information about your debts and work out which debts you need to deal with first. You will get advice on how you can reduce your regular living costs and then make a plan to pay your debts.

Moneyhelper.org.uk – You don’t have to struggle alone when you are in debt. You can speak to their trained debt adviser about your debt situation. They can help you come to the best decision to resolve your debt challenges.

Nationaldebtline.org – You can get free and confidential advice on dealing with all your debt problems in the UK.

Stop using your credit cards

If you’re drowning in debt, stop using your credit cards. This would be a big step towards getting control over your finances. Additionally, you’ll have a much better idea of where all your money is going if you don’t have easy access to it. The best thing about credit cards is that they’re designed for convenience. However, once you get out of debt, resist making purchases on them until you really need something. And even then, try to pay with cash or debit card instead. This will help keep your spending in check and remind you that every purchase comes with a cost, literally and figuratively.

Give yourself a monthly allowance

Once you have an idea of how much money you have left for debt repayment each month, it’s time to decide on a concrete monthly allowance. The best way to do so is by creating a simple budget, which will take into account your essential expenses (rent/mortgage, utilities, transportation) and your discretionary ones (food, clothes, entertainment). From there, subtract what’s left—this is your monthly allowance. We recommend aiming for £300 or less per month.

Save for something you want

Another great way to get out of debt is by saving for something you want. Saving money requires self-control, but that can be a good thing. Any time you feel yourself yearning for a new purchase, ask yourself if there’s anything in your house or garage that could do just as well. If so, save up until you can buy it outright rather than making payments on it for years. Take control and be responsible with your money; avoid debt like it’s a tax bill!

Pay cash for everything else

It may seem obvious, but when you’re strapped for cash, it can be easy to let your credit card take over. Before your next purchase, think about whether or not you have enough money saved up or at least on hand. If not, wait a few days and see if that little voice will go away. You’ll be amazed how quickly that need is replaced by a new desire!

Cut up all your credit cards – mentally

Before you can get started on your debt-free journey, it’s important that you mentally cut up all your credit cards. Although some people believe using credit cards for everyday purchases is okay if you pay off your balance every month, it’s still easy to get caught up in consumerism. Credit cards are a great way to spend money without having any cash on hand (not good when living on a budget), and they can make paying off other debts much more difficult.

Do not use overdrafts on your bank account

Overdrafts are extra money borrowed from your bank if you spend more than what’s in your account. These overdrafts, as they’re called, have a fee attached—typically a flat fee and then some interest. If you have debt and are looking for debt help in the UK, getting yourself into an overdraft could only make things worse.

Start paying off your debts from smallest to largest

This one’s more of a basic tip, but if you aren’t sure how to tackle your debts (and you’re not a maths wizard), it’s best to start with your smallest debt and work your way up. You won’t feel as overwhelmed and you won’t get discouraged as easily. Once you clear off one debt, you can use that money towards paying off another bill. It may be hard at first, but with practice, it will get easier!

Be firm with your creditors when they call or send letters asking for payment

If you owe money, and creditors start calling or sending letters asking for payment, it can be tempting to just ignore them. But that’s not a good idea if you want to keep your creditors from getting more aggressive. You don’t want them sending letters out listing all your debts—and even getting a judgement against you. Connect with trusted debt experts and take their advice on how best to deal with aggressive creditors harassing you for payment.