Getting clear of debt is beneficial in several ways, especially during the difficult time this year. The last thing anyone needs is scores of unpaid debts, debt chasing letters arriving in the mail, and additional anxiety associated with their finances.
One way to deal with these kinds of issues and regain control over your finances again is to use a process called debt consolidation. It’s not a new concept, but if you haven’t tried it before and think it might be useful, then this article will be worth reading.
What you can expect in this article:
Managing Daily Life in a Pandemic
It is clear to most observers that after at least four months of life restrictions due to the global virus we’ve all been worried about, life is not normal now. As such, it’s harder to deal with the constant bad news cycle, money worries, and the limitations currently in place.
If you’re in a situation where you have creditors calling you up at home, sending urgent letters through the mail, and generally making a nuisance of themselves, then it may be time to address that. Doing so and using debt consolidation is likely to relieve the pressure.
Juggling Too Many Financial Balls in the Air
When things have gotten away from you, and there are now too many companies that you owe, it can quickly become completely overwhelming.
Reducing the number of outstanding debts to either one (or just small handful) can turn the situation around. Then you can stop fear rising every time the phone rings unexpectedly, or there’s an ominous knock at the door.
Budgeting Becomes Easier Too
When you have too many individual outgoings all at different times of the month, it’s difficult to keep track of all the standing orders or direct debits. You almost need to be an accountant to handle it all!
It increases the likelihood of going into overdraft and incurring extra fees and unauthorised interest costs, which aren’t cheap. Or, the bank does not honour the transactions and levies extra charges too. This only sets a difficult financial situation back even farther.
Dropping many individual debt payments down to only one or two avoids the hassle and the risks associated with failing to manage your money right. Life gets in the way, especially right now. It’s a time when we need fewer complications, not more.
Debt Consolidation Options
One of the easiest and quickest ways to consolidate some indebtedness is to use direct payday loans. They are issued extremely fast once approved and can be used to pay off multiple outstanding debts to simplify your life.
The repayment periods don’t need to be long, so if you’re thinking about taking on extra work to knock out your debts quicker, you can find payday loans here. Payday UK has loans available from just £50 up to £5,000, depending on what you can qualify for. And quicker repayment is usually less expensive, so you could use a new second income to repay quicker too.
It’s Never Too Late to Get a Fresh Start
While financial matters do become overwhelming when someone gets into a mess, it’s also possible to unravel it and do something about it. If that sounds like you, then don’t give up on your financial situation.
Know Where You Are Now
To get a better handle on your money, it’s necessary to know where you stand today.
Make a list of your debts from smallest to largest. This is a great starting point.
Then you need to figure out what you’ve been spending recently and compare that to your regular income.
Cut Your Expenses to Free Up Cash
If you discover that you’ve been spending more than you have coming in, that’s certainly a good reason why there’s debt in your life.
To stop incurring new debt, look for ways to cut your living costs, and not purchase any luxury items until you have some of your debts repaid in full.
Take on Extra Work if You Can
Where possible, see if you can find a way to bring in a second income. This might be driving for a ride-sharing company, making food deliveries like through Deliveroo, or something online that can produce extra money for you.
Change Your Financial Outlook
Once you have a healthier-looking income and your expenses are cut down, there should now be some spare money each month.
With the spare funds, you can begin to build an emergency fund, if you don’t have one already. And some of the extra money can also be pushed towards your old debts to repay them sooner too.
Use Debt Consolidation to Feel Better About Your Progress
Mark the debts on the list you’ve prepared to indicate which ones you’d most like to consolidate.
See if you can get a debt consolidation loan to simply your financial situation. Then use your newfound fiscal responsibility to work on repaying the debts sooner.
Debt consolidation is so much more important than before because it helps relieve the financial stress that you’re feeling. It also encourages you to manage money better in the future too. And that’s never a bad thing.