It is easy to borrow money these days - and even easier to get
into debt. Don't give up if you are having trouble managing
your debts. There are always options available to you and people
that can help.
Tally up your debts
When dealing with debt, the first thing you need to look at is
how much debt you have. Without having an idea about the size of
your debt, it's difficult to work out an appropriate plan of
Use our net worth calculator to review your overall
financial position. It will help you make sure you take all your
debts into account.
Your net worth calculator
How to pay off your debts
Once you have an idea about your overall financial position, you
can start looking at options for making extra repayments and
clearing some of your debts.
Depending on how much and what type of debt you have, there
could be a couple of options open to you.
You could start by:
- paying off the debt with the highest interest rate first;
- paying off the smallest debt first (so you feel a sense of
repayments for more details on how to prioritise different
types of debts.
We also have specific guidance on different types of debts:
- Mortgages - help with
- Travel debt - pay
off your travel expenses
- Credit cards -
dealing with multiple credit cards
- Fines - help for
people struggling with fines
- Utility bills - take
action on water, electricity, phone and gas bills
- Uni debt - when you have to
pay your uni debt and how to make voluntary payments
We also have calculators to help you crunch the numbers on your
debts to work out how a small extra repayment can make a big
difference in reducing the money you owe and the interest you will
Credit card calculator
Personal loan calculator
If you are struggling to manage your debts, it may sound like a
good idea to pay someone to fix your credit problems or roll all
your loans into one loan. Before you go down this road, consider if
this really is the best option for you or if there are other ways
you could go, to get help for free - for example from a financial
Consolidating or refinancing loans can work for some people if
it means they pay less in fees and interest. For others, it may
only be a short-term fix, especially if they can't meet the
repayments on the new loan.
Find out more about consolidating and
Get help if you are
struggling with your debts
If your debts are getting out of control or you are really
struggling to make ends meet, it's important to act quickly. Here
are some places you can go for free help and guidance.
It might sound like a good idea to pay someone to help fix your
credit history, but credit repair agencies and debt solution
companies may not always be able to do what they claim. Find out
solution companies can and can't do for you.
When it comes to getting on top of debt, the
most important thing is to get started. Assess your situation and
consider the options that will work best for you. If you are
struggling with debt, act quickly and seek help.
Last updated: 22 Jan 2016