In his keynote speech at the Conservative party conference in Manchester yesterday, Prime Minister David Cameron urged Britain to pay off all existing credit card and store card debts. The firm message was ìdeal with your debtsî.
Debt charity Consumer Credit Counselling Service (CCCS) welcomed the news from the PM. Recent research found that 6.2 million households are currently financially vulnerable. Research by the Financial Inclusion Centre found that 3.2 million are already in financial difficulty and a further 3 million are at risk of debt.
Following Mr Cameronís advice, here are some top tips to deal with debt.
Seek debt advice
If you are experiencing serious debt problems, donít suffer in silence. It is advisable to seek professional help from a debt management company who will be able to consolidate your debts and discuss the best solution for your circumstances. With the aid of a debt management solution, you could be debt free within a feasible time scale.
Avoid increasing your debt
Borrowing to get out of debt could land you in a vicious circle of financial trouble. If you are looking for a loan or credit card simply to borrow money, not necessarily to pay off existing debts, it is advisable to shop around for the best rates and low interest deals.
There are many banks and lenders offering competitive rates on balance transfer credit cards with long 0% interest rates. For example, the Barclaycard Platinum Credit Card currently offers 0% interest for a period of up to 22 months.
Compare balance transfer credit cards.
Pay off debts
Saving seems virtually impossible with such a low base rate. However, if you can change your spending habits you may be able to contribute more towards paying off your debts. Set yourself a budget for how much debt you wish to pay off by a certain date. Make it realistic and donít be too ambitious as it can take years to pay off debt. However, you can make a start now by going out less, buying ëown brandí food and reducing your bills.