Manage Your Debt
As well as taking action by contacting lenders you are struggling to pay and finding a viable debt solution (that enables you to pay off your debts and afford to live with minimal stress), you should also focus on two core actions: Increasing your income and decreasing your spending.
Increase your income. "Well if I knew how to do that I wouldn't be in this mess," you may well say. But when trying to get debts under control, the first port of call should be evaluating possible methods of topping up your income. From undertaking extra work or overtime, checking you are claiming all the benefits you are entitled to, or selling items on ebay, brainstorm ways to bring in the pounds.
Tax Credits and Other Benefits
For example, there are huge numbers of people across the UK who are not claiming benefits that they are entitled to receive, including tax credits.
If you are aged 60 or over, you may be entitled to pension credit or, you may find that your income, capital or national insurance contributions entitle you to certain tax credits. Changes in income or mobility may qualify you for other credits, so it's certainly worth checking if you are entitled to any benefits that you aren't yet claiming.
You may be employed and think you won't be entitled to any credits or benefits, but you should always check. If you are in a low income job, the likelihood is that you are entitled to certain benefits. Contact your local Citizens Advice Bureau to see if you are able to claim any credits, such as working tax credit or child tax credit.
The Inland Revenue Tax Credits helpdesk is reachable on 0845 300 3900. Or the Child Benefits helpdesk is reachable on 0845 601 8040.
Tax Codes
Check you have been given the correct tax code for your own circumstances. You don't want to end up paying more tax than you should be paying. And, in order to manage your debt effectively, you should focus on ways to minimise what you pay out and maximise what comes in.
Tax Allowances
If you are the parent of a child under 16 and are paying income tax (via employment or self-employment), you are entitled to claim tax relief via Children's Tax Credit. Call 0845 601 8040.
Decrease your spending. Figure out exactly how much you are spending each month using our income and expenditure worksheet. Then prioritise which you can't go without and which are luxuries, and list bills you may be able to find cheaper providers for (such as phone and utility providers) and see if you can reduce your monthly payments.
Avoid spending any further money on your credit card unless absolutely necessary. If you need a credit card, ask to have your limit capped. Consider changing credit card provider, otherwise, get rid.
Advice
Advice: How to stay out of Debt
Advice: Manage your Debt
Advice: How to manage your money and get out of debt
Advice: Saving and Borrowing
|
|
| |
|
|
 |
|
|
|
 |
- Simply enter your debt details
- Wizard will tell
you which solution is best for you
Click here to try it
|
|
|
|
|
|
|
 |
|
|
|
