6 tips to help break the cycle of debt

We understand that it can be overwhelming when you're caught in a cycle of debt and even harder to get out of it so here are some tips and tools to help you to break the cycle:

  • Add up your interest.

  • Need a strong incentive to think about your finances? Dig out your statements from the last 6 months and take a look at the interest you've paid. Taking control of your finances by consolidating will mean you could be saving some of that money or using it for something special for you instead of paying it out in interest.

  • Use online tools.

  • Debt consolidator calculators are a quick way to understand your outgoings and how much you might need to borrow to clear your debt. They can help you to, determine whether you really need to consolidate or simply help identify how small changes to your monthly spend could improve your financial situation. We have our own tool that will help you if you want more information about consolidating any debts.

  • Consider balance transfer options.

  • Are you paying 2 or more credit cards and have available balance on one credit card? Most credit card companies offer balance transfer offers for existing customers and so long as you stay within your agreed credit limit and the amount you want to transfer will keep you below 90% of your available balance; you could save on interest on one or more credit card balance.

  • Shop around.

  • Be sure to check out all of your options before you commit to one. Making multiple applications in quick succession can impact your credit rating. Comparison sites will often give you an indication of how likely you are to be accepted for a product at various banks and building societies, removing some of the anxiety of applying for a loan, for example.

  • Seek advice.

  • Most banks offer a financial heath check and while it may involve a trip into your nearest branch, it's worth the trip if you come away feeling less anxious. While it doesn't mean you'll automatically get accepted for a financial product, it can help you to determine whether you really need to consolidate or simply help identify how small changes could improve your financial situation.

  • Don't ignore it.

  • If you have a problem with debt, it's important not to panic but don't ignore it either. There is free confidential advice available such as the Citizens Advice Bureau https://www.citizensadvice.org.uk/debt-and-money/. Removing the stress of making multiple monthly payments and feeling out of control in the short term will also benefit your credit record in the long term.

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