Anyone who has faced any amount of debt knows how complicated and isolating it can be. Facing many loans from different lenders can be challenging to manage. Especially on top of keeping up with those payments and paying them on time. But in these isolating and overwhelming times, you do not have to face them alone.
There are a variety of steps you can take to simplify your financial situation and get back on track. In this article, we'll explore five strategies to help you take control of your debt. From refinancing your finances to automating payments, these tips will help you reduce your debt, save money, and achieve a more stable financial future.
Here are five ways you can simplify your financial and debt situation, to take back control!
Written by Harvey Perry
JN Bank UK Digital Marketing Executive
Refinancing your finances
If you have many debts to different lenders, then refinancing your debts can be a way to control your debt. One option is a Consolidation Loan which could be what you need to start your simplify debt journey. This is when you apply for a new loan that will cover the amount of all your existing loans. Then you pay off this new, single loan, instead of many to different lenders. Then, you only have one loan to pay.
Consolidating different debts into one repayable loan. Before applying, you should research if this option is right for you. What are the interest rates on the new loan? Would your payments be higher or lower? What is the timeline for being debt free? These are questions you need answers to before applying for a Consolidation Loan.
There is a lot you must consider before taking out a Consolidating Loan, but it is an available option.
Paying off high-interest debt
Before you think about savings, or treating yourself to items on your wishlist; consider paying off any high-interest debt. Paying off the debt that costs you the most is one way to put a stop to the spiral of debt you may be facing.
By paying off your high-interest debt, you can put the money you would spend on interest towards other bills - or treating yourself! If you’re in a position to start paying off debt right now, it can also be very motivating to see your debt total decrease.
Automate your payments
Automating your payments is a good way to make sure your bills are paid on time, without breaking a sweat. Have the robots do the work for you, so you can avoid any unwanted phone calls about missed payments! As well as paying your bills paid on time, automatic payments can also help you avoid late fees or penalties.
Making regular payments on time can also positively impact your credit score. If your bills are not automated and would like to make them so, check on your bank's website for instructions.
Always make sure you have enough money in your account before your late payments go out, so your payments can be successfully taken.
Getting it all on paper
It can be very scary to know exactly how much you have coming in and going out each month. But by better understanding your finances, you can see how much you need to save for a rainy day, and if you need any support to get you to the end of the month.
Lying everything out bare should also help you see if you are paying for something unnecessarily or can be cancelled to save you money. Get it all out on paper so you can make a plan of action accordingly.
Getting everything all out on paper is the key to knowing how to manage your debt. For more tips on How To Manage Debt, click here to read another article in our Article Hub.
Putting your plan into action to simplify debt that you have is just as important as doing it month after month. It's also important to recognise that now the hard work really begins, as now you have to stick to your plan.
Every new saving goal, or growing your financial safety net is a cause to celebrate - and these moments will motivate you to keep going. Taking consistent small steps to take control of your financial situation is the key to living a life not clouded by money-related stress.
We hope these five tips have helped you on your journey to simplify your debt. If you found this article helpful, be sure to check out our other articles and follow us on social media for more advice on personal finance.
We are here to help you find a way
If you are a JN Bank UK customer and need to reach out to our dedicated team for support, you can reach us using the contact details below. Getting help before a financial problem becomes more and more difficult to handle is the best way to resolve it sooner.
You can contact our brilliant Financial Help Squad for FREE help and support using the contact details below.