Friday, 17 December 2021
We all say it every year “New Year, New Me”. Quite often new year’s resolutions are broken but if you are in debt then this year is your year to make financial resolutions and stick to them. Making small changes can create long term rewards. Make it your goal in 2022 to get your finances in order, we are here to help you with that. Below are some of our recommendations to get your finances in check-in 2022:
1. Credit Report
Do you know your credit score and do you have a copy of your credit report? If not, we highly recommend that you obtain these as this will let you see exactly what your lenders will see. It will also tell you at a glance exactly how much you owe in mortgages, credit cards, store cards, finance agreements and mobile phone contracts. If you are seeking debt help this is also the first thing an advisor will request from you. Always best to be prepared. A free credit report can be obtained at www.clearscore.com.
2. Budget
Prepare a household budget. Detail how much money comes into the house each month and deduct the monthly household essential expenditure e.g. mortgage/rent, rates, electric, heating oil, groceries, school meals, fuel, insurances etc. How much is left over per month to go towards creditors? Is it enough to make the payments? Can savings be made anywhere? Have you considered shopping around for cheaper utility providers? Are you on the best mortgage rate?
3. Debt Consolidation
Dependent on your circumstances you may be able to consolidate all your debt into one monthly manageable payment. In some instances, you may be able to draw additional funds from your mortgage provider to pay off debts. Be careful to ensure you are not paying more interest in the long run.
Consider selling any assets or valuables that you no longer use and using the funds towards paying off your debts.
4. Switch credit card debt to interest-free offers
Another option is to move outstanding credit balances to a zero transfer balance credit card. For this option to be available, and to ensure the best rate, you are likely to require a high credit score.
To make the most of a balance transfer credit card you should ensure you have sufficient funds to pay the monthly payment each month. If you miss a payment the promotional period of interest-free will automatically end. You should ensure you pay off your debts before the zero per cent interest term ends by paying off as much as you can regularly.
5. Seek help from our Experts
If you are struggling and feeling overwhelmed with debt then we would recommend that you seek help from our team of experts. We will work alongside you to prepare a tailored plan to help you address your debts.
If you think you can benefit from a financial health check from one of our advisors, get in touch today at info@clearslate.co.uk or 03304609988.