Top Tips on Reducing Your Debts

Being in debt can feel like you’re stuck at the bottom of a well with no way out. But there are in fact many simple tools you can implement to help change your circumstances for the better. There is no need to feel helpless – these little nuggets of advice will allow you to take control of the situation and find a way out more quickly and easily than you imagined.

It may sound obvious but the most important things usually are. So begin by meticulously organising your finances. That means going through every piece of paper and every bank statement, filing them all into a folder that has a precise system so you can really see where you’re at – in black and white. Make lists and tables, or whatever is best for you, to really get your head around just how much you owe and where. Writing things down is a good way to cement them into your memory as well as giving you something tangible to deal with instead of a head full of worry and meaningless figures.

The next thing is to kick yourself and your family into action. Brainstorm all the possible ways to bring in extra income, even if you are working full time. You never know, something you thought to be just a hobby could turn into a moneymaker. Use the opportunity to have a major clear out by decluttering your life and home and selling anything worth selling. Give the rest to charity and be reminded that you could be worse off.

To really take control of your spending you need to cut up each and every credit card and start living on a cash budget. It is by far the most manageable way to keep a hold on what you spend your money on and where you can make savings. It is incredible how detached we become from the concept of money when it is vaguely represented by a piece of plastic.

Making small savings in different ways is a surprisingly effective means of finding you have more money than you thought at your disposal. Look thoroughly at every aspect of your lifestyle and see where you can make the changes. Household items hold great saving potential, such as swapping certain foods and toiletries for own-brands; buying your groceries at the local market instead of a supermarket.

Leave the car at home whenever you can and get a little exercise in whilst saving on fuel. Petrol is incredibly expensive these days and it is easy to get lazy by using our cars when we don’t need to. If you can’t resist the urge to go shopping for clothes then try hitting up the charity shops and grab yourself a real bargain. Get creative with cooking and ditch the frozen, instant meals. Not only do you end up eating well with fresh ingredients, you can make savings by cooking enough to divide up and freeze in Tupperware.

The debts themselves will no doubt be riddled with interest rates. This is where you need to take initiative and call up the companies to arrange a lower rate as well as setting up a manageable payment plan. If the first person you speak to says they do not have authority to lower your interest rate then ask to talk to someone who does. Many companies are happy just to know they will be getting their money back, regardless of how. One piece of good advice is to prioritise your debts by their interest rates and not their balance. Simply because this is where many people get caught out, with smaller debts becoming much bigger ones under the radar.

If you think that selling your house to release its equity may be an option then Jemima Poppy can help. We are experienced in dealing with people in financial difficulty and are able to buy houses quickly for cash. We also offer a fast sell service along with expert advice to help you manage your debts. Please be reassured that Jemima Poppy operates very differently from some companies who offer to buy your home quickly.  We will never try to re-negotiate a purchase price once we have agreed it with you – we stand by our offers. You will receive a written offer within 48 hours of our meeting and we will encourage you to discuss that offer with your advisors.  If you do not believe, the offer will improve your situation we will not proceed. Contact us to find out more. All our services are free and confidential.

If you are facing problems, and would like to speak to one of our advisors in confidence, please call Jemima Poppy today on 01908 232879.