Make this the year to clear debt.

Debt, no one likes talking about it, nor admitting to it. And yet we all seem to have it, to some degrees at least. Credit cards, mortgages, store cards, car finance, phone contracts, overdraft – they are all debts we often take out, dip into or use without much consideration. Or we do, but we would much rather forget about it because it’s needed.

And whilst many of these debts are necessary and unavoidable, some can be controlled, maintained and cleared – if you put your mind to it.

I ‘m talking credit cards, store cards and over drafts of course. The type where you pay interest, sometimes considerable interest, monthly, and can cause negative effects to your credit score.

It was only the other night, after mulling over finances, I realized that we could be debt free in months, if only we upped our payments slightly.

Read : 5 Financial steps I took

How on earth are you doing that?

Well, various things. Here’s a little low down on how you can clear some of those interest ridden debts and make this the year you tackle it.

Make more than your minimal payments – Even paying just a couple of pounds a more a month can help reduce your debt, and the interest you pay quicker. Be sure to check what you can afford, but paying more can really help tackle high interest credit.

Consider a balance transfer credit card – Whilst it may seem counteractive to go and get another credit card to pay off your current credit card, but trust me, it will help.
Hunt the web for interest free, balance transfer credit card to transfer pre-existing debt to the new card. ( You can even consolidate various debts onto one card! )
From here, you can make regular payments ( even the same as before ), and tackle the debt quicker. Many card offer between 24 and 37 months interest free so you have plenty of time to pay off, without paying interest! Win win!

Prioritize – When it comes to multiple loans and debts, it’s all about priority. You do need to make payments when you can, as missing payments can further damage your credit score. When it comes to juggling many payments and wanting to over pay, prioritize what would save you money the most. Look at your interest rates and consider paying off your largely expensive loan / debt first.

Seek Help – If you are really struggling, seek help. There are lots of places online that can help you tackle your debt effectively. If you are unable to make payments, be sure to speak to your bank / the company you owe money to. They will be able with payment arrangements and maybe even interest rates.

Whilst it can be pretty daunting when it comes to speaking out about finances and debts, always remember you are not alone. There is always someone else worse off and there is light at the end of the tunnel.

Seek help and try and contain your spending. Consider the impact on your credit score, yet remember that credit scores can easily, and fairly quickly, be worked on.

Do you chat finances? Are you looking to tackle yours this year? Do you have any advice?
As always, be sure to share your thoughts and feelings.

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