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

  1. Sell any unwanted items on eBay, or Amazon Marketplace.
  2. Sell any Premium Bonds or any unused foreign currency you may have.
  3. If you have any small savings accounts lying around, transfer them to your current account.

Take Control of your Finances

  1. Draw up a simple monthly budget on paper or using Excel and try your best to stick to it.
  2. Draw up a list of what you owe and the monthly payments on all of your borrowings.
  3. Check your Credit Report to make sure you haven’t missed anything and to keep track of your borrowings. On checkmyfile this is FREE for 30 days and then costs £14.99 per month until you cancel, which you can do at any time.

Reduce Your Outgoings

  1. Move to cheaper lenders, 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.
  2. Consider changing energy supplier. It only takes about 20 minutes and typically will save £200 per year.
  3. Ask your bank for a list of all standing orders and direct debits - go through them and cancel anything you don't really need.
  4. 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.
  5. 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.
  6. 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 £170 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

  1. Make sure you are claiming all the benefits you are entitled to.
Back to the Debt Advice CentreStill worried? Try our suggestions on Debt Indigestion