Looking for ways to save on your debts?

According to statistics, up to 8.3 million people in the UK find themselves either in debt or unable to pay household bills. From overdrafts to loans, there are many ways that people can find themselves in debt, and if you are suffering stress related to debt, then it’s important to take the first step to clearing it today.

Whilst it is easy to bury your head in the sand when it comes to debts, you’ll find yourself much happier if you face the music and start taking steps to paying everything off. There are now a range of different avenues you can explore when it comes to repaying debts – here are a few that you may consider.

Debt Arrangement Schemes (DAS)

A debt arrangement scheme is a statutory debt management plan, which is specifically available to residents of Scotland. For more information on this, maybe Carrington Dean can help.

Created as an alternative to Trust Deeds and IVAs, a DAS will ensure that all interest, fees and charges on your debts are frozen and waived when your Debt Payment Programme has been completed, and you won’t have to worry about your home or car as long as you keep up with your repayments.

This means that you can focus on repaying your debts without the impending threat of losing your home, giving you a fresh financial start.

Refinancing your home or vehicle

If you are paying a mortgage or your car is being paid for on finance, then there may be an option to refinance or re-mortgage. By doing this, you may be able to take advantage of a lower interest rate or a more favourable monthly rate.

If your credit score has improved since you took out your mortgage or finance, then you are more likely to have access to more favourable rates.

Consolidate your existing debts with a balance transfer card

If you have debts with a high interest rate, such as credit card debts, then it may be wise to redistribute these to a balance transfer card.

Balance transfer cards offer good incentives such as 0% interest over 18 months, giving you time to repay the debts without accruing any further interest on top. One thing to consider with these is that there may be a balance transfer fee, so ensure that you have factored this in when calculating potential savings.

Get out of the vicious cycle

Debt can be a vicious cycle at times, and whilst you’re trying to get out of one debt, you’re getting yourself into additional debt.

It is important to take control of the way you spend your money and begin to budget properly on a month-by-month basis, ensuring that you are not spending more than you can afford, whilst also dedicating some of your cashflow to paying off your existing debts.

Sit down with your bank statement and work out if there are any coasts which could be saved on; are you paying for a gym membership which you aren’t using? Are you spending far too much money on eating out when you could simply cook for yourself> You may find that there are plenty of ways to help boost your cashflow.

Money Journey

Money Journey

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