Finance Agreements

Personal debt is something that is, generally, quite easy to get into. National statistics show that, in combined personal debt, the UK is almost 1.5bn in the red.

To avoid getting into debt, you can easily do this by adopting a sensible approach to spending. Avoiding using your credit cards and making unnecessary impulse buys, and try carrying only the cash you need with you each day. If you spend a 5 or 10 at lunch each day, try bringing your won lunch to work. You can make your money work for you by shopping around, using loyalty cards and looking out for special offers.

If you’re already into debt, the most important thing is not to make the situation worse. Credit cards, fixed term overdrafts, and even debt consolidation loans are not the way to go – most will involve high interest rates and fees that will only add to your problems later on.

Manage your current debt: You will often see advertisements for debt consolidation loans for people with a bad credit history, but more often than not, these involve high interest rates that lead to more debt. Many lenders will negotiate with you if you are running into trouble, so always check directly with them first, and never ignore arrears letters – the problem won’t go away. If need be, seek impartial advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service.

If your financial situation is worsening, seek advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service. Both offer free, impartial advice and they won’t try and sell you any ‘debt solutions’.

Got a skill? Use it! Doing part time or weekend work can bring in a little extra money each month, so whether it’s teaching music, languages, cutting hair, or even doing weekend or evening work in a bar/shop, you can always bring in a little extra cash.

Find out more about debt management. Find out more about debt management.