Top 10 Mistakes People Make Trying To Get Out Of Debt

We have made a guide on the top mistakes people make when struggling with debt and trying to get debt free. Hopefully, it helps. We know how tough it can be living with debt.

Using A Consolidation Loan

Borrowing more money to try and get out of debt defeats the whole point. Alongside high interest rates and unaffordable monthly payments. Taking out a loan to deal with debt does not always solve the problems.

An IVA allows you to consolidate all your debts, into one affordable monthly payment, without borrowing money and paying interest. Please visit our website; https://consumerdebthelp.info/.

Ignoring The Debts!

Sometimes you can feel like burying your head in the sand and hiding away from all the stress. With the letters piling up and ignoring the phone calls it only leads to more stress.

There are ways to get out of debt fast and securely using government backed debt solutions. You may be entitled to debt write off. Please visit our website to see how we can help; www.consumerdebthelp.info

Using Multiple Credit Cards And Balance Transfers

Some people juggle different credit cards and only pay minimum payments and try and balance transfer their way out. It can feel like you’re on top of things and dealing with the debt. But in reality, it is just an endless cycle.

By paying all the interest and minimum payments you don’t actually see the balances go down and it can go on for years. Especially if you’re relying on the credit cards every month to get by.

Spending/Budgeting Issues

Often the root cause of debt can be over-spending or not budgeting correctly. It is hard to keep track of all the payments that come out each month and your priority bills like rent, council tax and gas and electric.

Sometimes, sitting down and doing an income and expenditure can be helpful. Even if you are only writing down rough amounts down on a scrap piece of paper.

Not Prioritising Paying Off Debt

Even one or two missed payments can cause interest charges and missed payment charges to pile up. As well as causing your creditors to look at escalating and taking further action.

Whether that is court action, bailiff action, county court judgements or attachment of earnings. Token payments of a pound a month can keep the creditors off your back.

As well as giving you time and space to plan your next move whilst you look into formal, legally backed solutions to get out of debt.

Trying To Do It Alone

On top of struggling with debt and missing payments, feeling like you are doing it alone increases the stress and can even lead to physical and mental health issues. There are companies whose only job is to help people get out of debt.

Even having someone to speak to about it with and running through your options can be a huge weight off your shoulders. If you feel like the debts are impacting your health and wellbeing, please speak to the Samaritans on 116 123.

Understandably, it can be daunting to speak to family or friends about your debt but companies like Consumer Debt Help are here to help.

Ignoring The Cause Of Debt

Whether it is high electricity bills, hours at work being cut, having to support family and friends or poor budgeting, there is always a specific reason on how the debt managed to get out of control.

If you are struggling with debt and need help with debt, there will always be a root cause. It is important to look at what has caused the problems with debt and dealing with the cause rather than the effects.

Worrying About Your Credit Score

Many people are hesitant to look at formal solutions that write off debt because of their credit score.

Solutions like Debt Relief Orders, Debt management plans and Individual Voluntary Arrangements, IVAs, scare people because they think they’re going bankrupt or it will hurt their credit file.

Having outstanding debt on your credit file can be much more harmful than looking at a solution that clears debt. It also shows that you are serious about and committed to becoming debt free for good.

If you haven’t already or are unsure of how you owe money to, sign up to a free credit report on clearscore.com or totallymoney.com.

Using Cards And Catalogues And Overdrafts Whilst Trying To Pay Them Off

It can be tempting to use your credit card for that monthly shop, or buying a few clothes from the store card, but with all the interest you can end up spending more than you are paying back. This is how easy it is to end up in a cycle of debt.

Once you end up behind and struggling with the credit cards, or seeing the overdraft get out of control it can be too late to get on top of it. You can even ask your creditors to freeze your balances whilst you try and catch up with payments.

You may think you can pay off the new charges and a little extra each month to try and “earn credit” but it rarely works out well.

Not Setting Aside Emergency Funds

Emergency funds or rainy-day funds are so important for keeping on top of your finances.

It’s impossible to predict losing your job or emergency vet bills or your car breaking down, but this is how most people end up struggling with debt and making unaffordable payments.

Even a fiver a week over a year or two kept safely away could save your bacon when you most need it. It avoids you having to take out loans, spend on credit cards or use up your overdraft.

Conclusion

Now you have read the top 10 mistakes people make trying to get out of debt, getting out of debt and living again should be your number one priority and it is our job to help.

Visit our website at www.consumerdebthelp.info and complete our quick survey to see if we can help you become debt free. Stop struggling and take that step, you owe it to yourself!