How to get out of debt fast in the UK

So you want to get out of debt now? There is no magic solution, but this article describes a way of gradual debt reduction, along with a programme for managing your money so that you do not get into debt again. It starts by looking at your debts, then explains how you can pay then off, and finally gives some hints for not ending up in this situation again.

What debts do you have?

How much money do you actually owe? A lot of people do not know this, and you cannot get rid of debt without knowing exactly what it is you are dealing with. So start by making a list of all your debts.

Get one low interest loan

Managing debt involves paying as little interest as possible so that you can start to pay off the capital. You are probably paying huge amounts of interest on credit card debts. Try to get one loan from a bank or other organisation with reasonable interest rates, then pay off the credit cards and other high interest loans.

Work out how to save money and pay off the loan

Now make a list of all your outgoings. Work out how you can reduce some of them. For instance, can you buy supermarket Value brand food, or turn you reheating down one degree and wear an extra sweater? Aim to save enough to pay off the interest and a little bit of the capital each month. It might not sound like this will get you out of debt fast, but you will gradually be paying off more capital as the months pass, and it really will not take you as long as you expect.

Other hints and tips

No more credit cards Cut up your credit cards so that you are not tempted to use them. Pay for everything with cash, cheques, or deebit cards. In this way, you will not spend more than you can afford. Earn more
Try to increase your income, perhaps by selling items on eBay, or getting an evening job. You do not need to earn much to make a significant difference when it comes to eliminating debt. Keep household accounts This may sound very boring, but if you know exctly how much money you have coming in and going out, then you are far less likely to get into debt again. Do not hide from the situation Perhaps you have been putting bills behind the clock, or otherwise hiding from your true financial situation. Vow to reduce your debt, and always keep track of things again. Hiding your head in the sand solves nothing.