|Debt Help for Outstanding Household Bills
You don’t have to spend, spend, spend to get into trouble with your finances any more. Given the current state of the economy and changes to lending products, even people who are careful with their cash can find that they get into financial difficulties at some time or other, especially with household bills. If you are lucky, then the debt help you need may only be a short-term issue, but for some of us, it may be a longer term problem. So, what can you do to clear your outstanding debts on household bills and get back on the straight and narrow?
Three steps to getting debt help for outstanding household bills:
- Step One: Figure out a budget. In achieving debt help, the first thing you need to do is to sit down and to work out exactly how much money you have coming in and how much money you have going out at the moment. Include all of your debt commitments, your household bills, everyday living expenses, and any money you ‘fritter’ on stuff like eating out, going out, and take-out, for example.
- Step Two: Ditch your ‘frittering’. If you are finding it hard to stretch your salary to meet your debt commitments, then take a long hard look at the money you ‘fritter’ to see if this might aid you in your debt help. In some cases, if you cut down on your spending for just a couple of months and focus only on necessary household bills, you may find that you pull together enough cash to make a dent in your debt repayments. So, don’t eat out, take a packed lunch to work, and don’t buy takeaways, for example. Think “essential” rather than “nice to have”!
- Step Three: Get rid of ‘expensive’ debt first. Some debts will cost you more than others. For example, the interest charged on a credit or store card (especially if you don’t pay it off in full every month) will be A LOT higher than the interest you pay on standard loans and mortgage and other household bills. So, if you have any cash spare, then pour it into where your debt help needs it most - repaying your expensive debt. Giving yourself a debt help boost here could save you hundreds of dollars.
If your debt help situation doesn’t allow you to follow these steps; for example, if you don’t have enough cash left every month to manage even minimum repayment commitments and to pay for basic household bills, then you may need further debt help. Don’t simply keep borrowing to meet your commitments without taking expert advice. This is simply a quick way to get into a worsening debt spiral.
The easiest way to find a solution that suits you is to talk to a local debt help or debt advice bureau. It will be able to give you guidance on your debt help options and where else to look for debt help with your household bills. Possible solutions include:
- Take out a personal loan to consolidate existing debts to get a fixed lower interest rate and payments.
- Talk to creditors to ask them to accept lower payments until you get back on your feet.
- Talk to a debt management company to get its help in managing and controlling your debts.
Do remember, however, that these solutions will not suit every individual; it is important to get impartial debt help about your household bills before you choose the option that suits you best.
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