Getting out of Debt

Getting out of debt is a big task! If it is difficult to meet up with financial challenges resulting from Debts here and there, there are things you can do to help your self out from credit. If you spend more than 10% - 20% of your income on debt repayment (excluding Mortgage) you are financially stressed.

Outline what you owe on loans and others etc. This may surprise you so be prepared! List out the repayment conditions and period for each. Then check the limit of your spending. It should not be more than 10%-20% of your total income.

You should work towards increasing your income so that you may be eligible to apply for government assistance such as tax credit or rent if your income is low. Get far away from credit!

Similarly, you should apply for a part time job to increase income or you can rent out your spare room to reduce spending much money on rent or to getting out of debt.

If all these didn't workout for you, think of other ways to reducing your spending.

Shop for cheaper items (products) at the shopping mall or supermarket. You can go for "own brands"

Go for cheaper substitutes for goods of the same value and satisfaction.

Another important solution to getting out of Debt is to reduce your social activities like night clubbing and other social life activities that involve much spending.

Place limit on the purchasing of ostentatious goods. It is rather amazing how much your grocery bill can be reduced by buying "Cheap brands".

Reduce the use of your vehicle in other to reduce your gas bills and also assist you greatly in getting out of Debt.

Some of the distance can be covered doing walking. This will also help to keep you fit.

If at the trial of the above methods and it still did not work out well, you can arrange for a meeting with your creditors and tell them to suspend the interest so that you can start to settle what you owe them.

Make sure you go into a legally binding agreement with your creditors called an Individual Voluntary Arrangement. This will considerably reduce the total amount you owe.

And above all, go for bankruptcy on the advice of a legal practitioner at the local Citizen's Advice Bureau. This will make you free from from credit