With the cost of living continuing to rise, families who find themselves in debt may be worried about what the future might hold. Fortunately, there are some simple tips and tricks which can help ease those concerns…
Anyone is liable to be in debt. Whether it is the result of expensive life events, like having children or moving to a new property, or simply a mismanagement of money, many families in Nottingham find themselves battling against debts on a regular basis.
While, at first, being in debt may seem like a scary situation, it isn’t a lost cause by any means. There are plenty of ways you and your family can cut the debt you are facing which, depending on your situation, could include anything from speaking to solicitors in Nottingham or simply creating a strict budget plan.
In this post, we discuss some simple tips Nottingham families can take into consideration if they are making plans to cut debt. Be sure to read on to find out more…
8 Tips to Cut Debt for Families in Nottingham
Speak to a Legal Expert
If you and your family are facing mounting debts and you don’t know where to turn, one of the first steps you can take would be to speak to a legal expert, such as a solicitor who specialises in debt advice.
A debt solicitor will be able to review your financial situation in full and guide you through the options that may be available to you. This would allow you to cut your debt as far as possible. In some cases, they could even act to negotiate repayments between you and your creditors on your behalf; both informal and formal measures.
Speak to Citizens Advice
If the prospect of speaking to a solicitor seems a little daunting at the moment, then there are other options available to you and your family. Citizens Advice Nottingham can provide you and your family with free, confidential advice on any issues that may be affecting your life, including debt.
Citizens Advice operates as independent charity and is comprised of both paid staff and trained volunteers.
Set Out a Weekly and Monthly Budget Plan
If you’re ready to start organising your finances in order to cut the debt you and your family are facing, it’s a sensible idea to create a clear budget plan that you can stick to. Having both a weekly and monthly budget plan will allow you to carefully monitor your income and expenses, meaning you can narrow down the areas you can save money.
Using a budget plan to eliminate any expenses that aren’t an absolute necessity will only serve to help you pay off any debts you’re facing much more efficiently.
Organise and Prioritise Your Debts
If you have more than one debt to pay off, and more than one creditor who you need to pay money to, it’s a good idea to organise and prioritise your debts accordingly.
You can base this on whether any of your creditors have particularly high interest rates related to the debt, or whether you believe that you can pay off a debt in full due to the relevant value of said debt.
Pay More than Your Minimum Balance Where Possible
If you find that you’re financially able to do so, there is always the possibility of being able to pay more than the minimum balance.
The advantage of this is obvious; if you can pay more than the minimum balance, you’ll be working to pay off the debts much faster than has been projected. This way, there will be less chance of you having to pay high interest rates.
Think About Alternative Ways of Generating Revenue
If money is tight and your monthly income only stretches so far, you may need to consider alternative ways of generating income in order to pay off the debts you and your family in Nottingham are facing.
This could be as simple as selling off and unwanted or unused items in your house to generate quick cash. Another way is by cancelling any non-essential subscriptions that will help to free up more money to pay off the debts.
Stop Using Your Credit Card
If you frequently shop online, you may have used your credit card in the past to make transactions quicker and more convenient. However, if you’re already in debt, racking up a hefty credit card bill which needs to be paid off can make the situation even more difficult to manage. This is why it’s a good idea to remove your online credit card information altogether.
Set Up a Debt Management Plan
If you and your family are in a lot of debt, it might be necessary to take a more advanced step. This could include taking measures, such as setting up a debt management plan, an Individual Voluntary arrangement (IVA), an administration order, a debt relief order or a bankruptcy order.
- Debt management plan: an agreement between you and your creditors which is used when you can only afford to make small repayments each month.
- IVA: an agreement where you make regular payments to an insolvency practitioner who divides the money between your creditors.
- Administration order: used when you have a county court or High court judgement against you.
- Debt relief order: stipulates that creditors cannot recover their money without the court’s permission.
- Bankruptcy order: order of the court confirming an individual is bankrupt.
How Else Might You Cut Any Debts You’re Facing?
In this post, we’ve taken a look at some tips you can keep in mind if you and your family in Nottingham are facing debts that you would be eager to cut. It’s by no means an easy process, and it may take some frugal financial planning. But, by addressing the issue now, you’ll be saving yourself plenty of headaches in the future.
Have you got any more tips regarding cutting debts? If so, feel free to leave them in the comments below!
Please be advised that this article is for general informational purposes only, and should not be used as a substitute for advice from a trained financial professional. Be sure to consult a financial advisor if you’re seeking advice on your finances. We are not liable for risks or issues associated with using or acting upon the information on this site.
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Photo 2 – Avery Evans via Unsplash
Photo 3 – Green Chameleon via Unsplash
