Debt Advice Centre

Get Through Short Term Problems

Everyone suffers from short term problems at some time in their life. Here are some actions you can take which can help speed up the time it takes to get your financial fortunes back to normal.

Generate Cash - Reduce Your Debt

• Sell any unwanted items on eBay, or Amazon Marketplace.
• If you've suffered bank charges, it is worth trying to claim them back - some banks are still paying out in part, or in full, despite the recent ruling in their favour.
• If you have taken out Payment Protection Insurance on any of your credit agreements, you may be able to reclaim any mis-sold cover.
• Think about selling any shares you may have, any premium bonds and selling any foreign currency you may have. The proceeds are better off used in reducing your debt than they are in a drawer.

Improve Your Awareness

• Draw up a simple monthly budget and try to stick to it - logging all of your Credit Balances, Monthly Payments and the APR you are being charged on your borrowing.
• Simplify this process by monitoring your Credit Report and track changes in your balances with our Credit Report Monitoring services FREE for 30 days and then just £7.99 per month. You can cancel at any time.

Reduce Your Outgoings

• Move to cheaper lenders - on average, people who spring clean their finances using our free Find a Lender service to find the cheapest cards matched to their current credit standing save £400 per year. Go for 0% introductory deals to save even more and always remember to close your expensive card accounts to avoid the temptation of using them in future.
• Consider changing energy supplier. It only takes about 20 minutes and typically will save £200 per year.
• Ask your bank for a list of all standing orders and direct debits - go through them and cancel anything you don't really need.
• Arrange to pay the minimum payment on all your credit cards by direct debit, and then pay more if you can afford it using the tear off slip. That way, you'll keep your credit rating intact.
• If you have a mortgage, think about remortgaging and consolidating your debt, preferably without increasing the debt, to a new mortgage lender that offers an introductory cheap rate. Do your sums carefully. Try to locate a specialist Independent Financial Advisor who has a lot of experience, not only in finding mortgages quickly, but also for debt-stressed people.
• If you have a car with a loan outstanding against it, check whether you could be better off selling it, repaying the loan (check for any early repayment penalties first) and leasing a new one to reduce your costs of motoring. A small car can be leased for just over £110 per month which will cover your road tax, breakdown cover and provide a warranty against breakdown. Pick the right one and you could save money on fuel too.

Improve Your Income

• Make sure you are claiming all the benefits you are entitled to.

Still worried? Try our suggestions on Debit Indigestion