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Seven steps to control your debt
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| (C) Rex Pictures |
Struggling with debt misery? You can get back on the financial straight and narrow - and fast. We show you how with our seven-step program
Step 1: Cut back and budget
Try to cut back on spending as much as possible. Avoid the sales. Draw out a lump sum of cash at the beginning of the week and leave your cash cards at home so you’re not tempted to spend any more. Draw up a strict budget and then stick to it. This is a good discipline and should help you reduce your debts much faster.
dealing with debt
Step 2: Watch your interest charges
Take a look at the interest rates on your different debts. For example, if you have a large bank overdraft you may be paying a higher interest rate on this than you are on your credit card. Likewise, if you have different credit cards they may be charging different amounts and store cards are likely to be the most expensive of the lot.
If you have significant debts that you know you won’t be able to pay off in the near future, you could think about consolidating them on to one low-rate credit card and commit to repaying a fixed amount each month.
