When it comes to getting your finances under control, it can be harder to have that initial talk with yourself and those closest to you. Admitting you are struggling with debt is never easy and taking that first step by admitting you need help is instrumental in getting the help you need.

There are many ways you can help yourself when it comes to getting your debt under control. You can find alternative debt solutions or work towards getting more income to fully pay off what you owe.

Work Out How Much You Owe.

The first step to solve your debt worries is to list exactly how much you owe and how much exactly you are paying each month. Write down everything. Include who you owe money to, how much and what payments you are making towards your debt.

This will help you see exactly what you are working with and the time and money it will take to clear the sum. Remember, if you still use credit accounts or credit cards, you will be increasing your debt and the interest applied to your account.

Budget.

Then go through your budget with a fine-tooth comb. Once you know exactly what you have coming in, you can work out what you can afford when it comes to repaying your debts. Your disposable income is what you have leftover when you have paid all of your household expenses including food, utilities, rent/mortgage, insurances etc.

Once you see in black and white what you have left to work with, you can then begin to look at your options when it comes to working to pay off your debts. This step is essential when getting your finances under control.

Managing your Monthly Payments.

If you are looking at an easier to make your repayments, then it may be worth looking at ways you can restructure your finances and cover all your monthly payments with a single lump sum. Paying one amount on a set date is easier to maintain than many different payments on many different days throughout the month.

There are options available if you are looking for this. However, in some cases, you could end up increasing the amount you owe to be able to do this. Pennon Partners can help advise you on how you can manage your monthly payments easier to help you clear your debts.

It is important to remember to discuss your options with your creditors. This will help to help avoid any difficulties you are having impact your credit rating in the future.

How To Pay off Debts without Borrowing More.

It is more than realistic for a lot of people, not everyone to be able to make changes to their spending habits. This will allow for more money to put towards paying off debts. In the first instance, you need to stop using any lines of credit to stop more interest being applied and extending how long you have to pay it off.

Looking at ways you can cut back on your spending and make small changes to your budget will free up more money you can put towards your debts. Some people find using the snowball method effective – this is where you maintain your monthly payments to all creditors but work from the highest interest debt you owe and work to pay that off first. Then put the money you were paying towards that to the next highest APR until that is paid off and so on.

This can help you clear debts quickly leaving you with more money to eventually focus on other debts. 

If you can’t afford to do this, then it may be worth your while looking at adding another stream of income to your household finances. Either in the form of another part-time job, working from home by putting your skills to good use or even turning a hobby into a career. You can then use this to pay off what you owe quicker.

If you feel you are struggling with debt and would like some advice you can find help online for free to see what options are available to you.