Recent reports suggest that former Atomic Kitten and now the face of Iceland Kerry Katona is in serious danger of being overrun with debt problems.
According to newspaper reports Kerry could owe as much as £1 million with debts reportedly including some £60,000 worth of loans and credit card bills.
But rather than stick her head in the sand and spend, spend, spend, Kerry has done the right thing and is trying to sort her debt problems. She has resorted to bringing in a team of finance advisers to help Kerry get out of debt and avoid bankruptcy.
Dodge debt at your peril
Kerry Katona is lucky enough to be able to sell a fleet of expensive cars and bring in a team of experts to help her deal with debt, but most of us arenít in that position and will find it difficult to come up with even simple solutions to solving a debt problem.
And with Christmas around the corner itíll be no fun when reality bites and you could be forgiven for burying your head in the sand and hoping for the best.
However Sun Money can help you break the cycle of debt and sort out your finances so you can work towards becoming debt-free and boost your wealth into the bargain.
Taking control ëthe Kerry wayí
It is easy to let your finances spiral out of control and it can be hard to keep track of all your borrowings.
Typically you might have:
- an overdraft on your bank account
- outstanding debt on your credit card and/or store card
- a personal loans or car finance deal
- a mortgage
With so many different repayments to juggle things can get confusing ñ and expensive. Plus it can be tempting to cut back on one and only make minimum repayments. But that will mean the debt mounting.
For all her problems Kerry is looking into sorting her financial nightmare. If youíre in the same boat then sit down and try to sort out your debts before the Christmas rush ñ and all that spending ñ truly begins.
You can boost your wealth while also giving yourself a better chance of becoming debt free by bringing all your debts under one roof.
Whether thatís transferring overdraft and credit card balances onto one long 0% card, or whether it means taking out a personal loan to repay all your creditors, the point is that with just one monthly payment to think about you can concentrate on repaying that money.
The aim should be to secure the lowest rate possible for your consolidation loan. That can mean you end up with lower repayments every month as youíll cut out the expensive debts and have everything in one place.
With credit cards you should wherever possible look to pay your debts off as quickly as you can. So if you transfer money onto a 0% card, set up a repayment schedule and stick to it. Otherwise when the deal expires itíll be you who pays the price as interest rates will typically jump to around 16%.
And remember like Kerry has that sorting your debt is not an excuse.
Dealing with debt rather than dodging it will give you peace of mind ñ but it shouldnít be an excuse to start borrowing more. So think of Kerry and break the cycle to become debt free.