How can I reduce my debt?
February 22, 2013

If you’re beginning to feel like your debt is getting out of control and you’re struggling to keep up with the repayments each month, it might be time to speak to a qualified adviser about what to do next. It’s important to know that you’re not alone. According to Citizens Advice Scotland, 118,244 Scottish residents sought debt advice from them in 2012.
Once you accept the amount of debt you have, it’s much easier to begin to consider the best way to manage it. Some debts simply require some budgeting, which can often mean going without some of the luxuries you’re used to, but in turn, you can control what you spend. Larger, more serious debts though, will require a carefully thought out debt solution.
It’s perfectly normal to be unsure of how serious your debt is, so here at Scotland Debt Solutions we can provide confidential, skilled advice on the most appropriate solution for you.
Our experienced advisers can discuss all the options with you clearly, cutting out all the scary jargon you can find on the internet. From debt management plans, to consolidation loans and even sequestration, a qualified debt expert can carefully consider the most realistic option to help reduce your debt.
If your debt isn’t overwhelming you just yet, it’s possible to start to work out a solution on your own.
Firstly, collect all your debt information, such as credit reports, balances, interest rates etc. This might be a daunting step, as many people are reluctant to work out exactly how much they owe. However, once you have all this information you can begin to create a budget, followed by a payment plan.
In your budget, work out the cost of all your living expenses (e.g. childcare, mortgage payments etc) and deduct them from your monthly income. Whatever you have left over can be used to start paying back your debt, starting with the highest interest rate and highest balance. It’s likely there might be a shortfall, in which case you may need to consider giving up some of your more luxury items such as internet, TV or phone subscriptions. If this is a necessity, consider reducing your package or if you’re close to the end of your contract, shopping around for a cheaper deal.
Finally, when you have calculated your total disposable income, you can construct a financial payment plan. Once this is in place, it’s important to contact your creditors and try to negotiate the terms on your accounts. Moving your debt to a lower or 0% interest credit card can also be helpful in the short term.
Trying to reduce your debt can be complicated and confusing, and often requires the assistance of a professional, particularly if you have an overwhelming amount of debt. It’s important to know all the facts before you commit yourself to a decision and our skilled advisers at Scotland Debt Solutions are always happy to offer confidential, impartial advice to help you get your debts organised.

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