*This post is in collaboration with CreditFix

Top Tips for Getting out of Debt

Being in debt can be very overwhelming and daunting. It can also lead to mental health problems such as depression and anxiety. January can be a grey time of year for most people, especially with money worries post Christmas. It’s easy to get into downward spiral with money, but there are things you can do about it.

There was a time my husband and I got into debt, it took a few years to clear, but by making some changes we managed to get it all paid off. The key is to make a plan, be honest about your situation and to be proactive, rather than sticking your head in the sand. Easier said than done sometimes I know, but as soon as you start making changes, I promise you it will feel like such a relief. Other than our mortgage and car loan we are now, several years later, debt free and I clearly remember the month the last payment was made.

Here are some top tips to help you get debt free:

• Consult the Citizen’s Advice Bureau or a debt expert company like Creditfix who have experience in this area and can advise you if you’re feeling overwhelmed.
• You need to stop getting into to debt in the first place and look at where you’re overspending. Sit down a put together a household budget, look at all areas where you’re spending money, how you can reduce them and what you can afford to spend each month and what you need to cut back on. Be tough, be firm and be brutal if you need to.
• Go on to comparison websites, check you gas, electric, broadband and all utility bills and look how you can reduce your monthly out goings.
• Sell things you no longer use or need, it also helps to de-clutter your house.
• Cut up any credit cards, spending on credit often gets you into trouble and is a very expensive way to borrow if you need to.
• Look at where you might be able to supplement your income, ideas include a second job, or even doing online surveys can all help to add to the pot.
• Consolidate your debts, by getting one loan to pay off all debts it can give you a more affordable monthly payment and a better interest rate too.
• Whenever you get a bonus or pay rise at work, put the money towards paying your debt off.
• Create an emergency pot. Life happens and things break, if you put aside some money each month and create an emergency pot of money you have something to fall back on when the car inevitably breaks down or the washing machine stops working rather than falling into debt to fix the problem.