Are you able to fit all your monthly expenses into your income? What do you do when your budget gets extended? Use your credit card? Borrow from a friend? Get a loan? You have a lot of options around you to borrow credit from.
Many people in the UK are facing issues due to rise in living costs with no visible rise in income. The citizens are forced to go beyond a set budget almost every month. This leads to high credit borrowing. Those who are unable to afford to pay back the whole amount, find themselves buried under debt. Their credit score starts declining which finally makes them apply for cheap short term loans for bad credit to get rid of their debt.
The biggest problem behind this is that you may not even realise that you are getting trapped under a debt that you may not be able to repay. Your everyday life would keep you so busy that you might lose track of money. For this, it is better that you know the signs of a debt problem.
What are the Signs of a Debt Problem?
1. Sleeping Trouble
You may start thinking about your dues and money while you are trying to sleep. You may try to console yourself that everyone around you has the same problem too. But not everyone loses sleep over money, do they?
2. Repaying debt with more debt
You use one credit card to repay the bill of the other. Or, you take a loan to make the repayment of the previous one. The cycle keeps going, the interest keeps adding up and nothing really gets paid off.
3. Maxed out credit card
You would have maxed out at least one of your credit cards. You would just pay the minimum bill amount each month and pass on the rest to the next one. This made you exhaust your limit and are just incurring interest now.
4. Rejection from credit application
You applied for credit cards and bank loans, but were abruptly rejected from each one. The lenders blamed your credit score and unpaid dues as the reasons. You suddenly become a high risk customer for them. Your high debt-to-income ratio does not really please a lender to risk his money.
5. Frequent calls from banks and lenders
You get at least 3 calls from banks or other lenders reminding you of your due payments. You get stressed each time they send you scary letters every week. The consequences scare you and you stay under constant worry about what might happen, and how to repay.
6. No savings
Your bank account is empty and you have zero savings or investments. The only time you have money is when you income is credited. Even that is vanishes as soon as you start paying your bills.
How can you fight Debt?
If you can relate to even 3 of the above situations, it is safe to say that you are facing a debt problem. This cannot be taken any further and must be acted upon from today. You really should buckle up and start taking serious action to repay your debt. Here are some of them that might help you along the way.
1. Quit shopping
You have enough clothes, accessories and makeup. It would be alright to manage with those for a few months. Resist yourself from getting tempted towards new things. Tell yourself that you cannot afford them. You will have to be strict with yourself if you wish to clear off your debt.
2. Stop using credit cards
They are the biggest reason why you are under so much debt today. Lock them away in a cupboard. Stay within what you earn each month and do not think you have the option of spending more. If needed, take up another job to increase your income and catch up on your dues.
3. Start repaying one by one
Select one debt based on whichever strategy you like and focus your funds into repaying it in full. Move step by step with what you owe and do not stop till every penny is paid off. Contact a direct lender in the UK for short term loans if nothing works out. This is called debt consolidation and is a very effective for people under a huge debt.
4. Cut down on living cost
Buy only what is needed. Do not spend on avoidable things. Become a miser for a month or two, and live from hand to mouth. It would be worth it when all your dues are paid off. Spend on utilities and groceries.
Increasing debt leads to credit damage and health issues. You might get stuck in a debt cycle and may even be black listed as a borrower by certain lenders like easycheaploan.com. Though online short term loans would always be a solution for you despite a bad credit score, it is still better to live a debt-free life.