*This is a collaborative post sharing some information about how sorting your finances could help you to manage your budget better*
Debt is still a taboo subject for many people and something that many people struggle with or have had to learn to manage but we still don’t always talk about it.
There can be many reasons for being in debt or having debt. You might have student loans, or credit card debt, you may have taken out loans to cover the cost of items at home, or a car. You may be managing a mortgage payment or loans to run your business. You would be surprised at how many people are managing debt of some sort. Even a large tax bill can throw out your finances and mean you have to work out a payment plan to clear it.
I personally have dealt with debt. I had a large student loan and credit card debt as a first time student, and then the second time round I also had loans to help with living expenses and credit card debt too. Paying those off and clearing them was challenging and somewhat stressful. Because I was working it was easier as I had regular income to help put towards payments but it isn’t always as simple as that for everyone.
It can feel like a minefield to work out how to clear your loans and debt, and it can be very stressful and impact your mental health, if you are worrying out payments or your future. There are lots of websites and companies that will claim to be able to help you, and companies that will take on your debt. There are also charities that can help. You do need to be careful not to get trapped into a further cycle of debt signing up to make payments or taking on higher interest, and it’s always best to sit down and look at your finances, interest rates, what is costing you most in terms of debt and how to clear those faster so you are spending less and breaking the loan or debt down.
Being in debt can affect you mental health, your relationships and how you feel about life. But you are not the only one and if we talk openly about debt, and how sorting your finances isn’t impossible, then the less scary and stressful it will be.
Debt consolidation may be your best option. Combining all of your debt into one manageable payment may be the best way to reduce your debt and making one payment and managing the interest often makes more sense for people trying to clear debt.
Making a list of your debts, the interest rates, how much you can afford to pay each month, then looking at how you could combine them into one could be the solution you need.
Click here to read some helpful information that takes some of the myths and mystery out of how debt consolidation works.
I think if we talked about debt more, and how getting into debt can actually happen more easily than people realise, and how we can get help if we need, even if it’s just basic financial planning and support, then the stress of debt and clearing debt might be lifted for so many people. I know I found it hard to admit that my student loan and credit card debt was worrying me.
So if you are trying to work out how to deal with your bills and debt then don’t panic, there are ways to get things under control and work towards sorting your finances so you can breathe more easily and manage your budget better.