You Can Deal With Debt

Having a certain amount of debt is pretty much normal these days – many people have a home loan, car finance and a couple of credit cards. Often we don’t even think about that being debt – it’s just the way we live. But it’s when we start to struggle to meet our repayments that the anxiety can set in – maybe we have lost our job or have some large, unexpected expenses we hadn’t planned for. Maybe we are getting divorced and debt that once seemed manageable with two incomes is now a struggle. Whatever the reason for getting into the situation it is only when we are struggling to make repayments that we actually feel we are “in debt”.

And nobody wants to be in this situation where our level of debt becomes a serious concern, especially if we are also going through the emotional upheaval of a divorce, but sometimes it happens. The first thing to remember is not to panic because you can deal with debt in a number of ways, and in the case of a break with a partner there are plenty of financial tips for divorcing couples, but it will require some changes in your attitude to money.

As I always say the first thing is to make sure you make the most essential payments i.e. your mortgage or rent. It’s then a matter of prioritising your debt and cutting right back on your spending and getting into that habit until your debt is under control and you once again have a good credit score. There is no point economising harshly for 3 months only to make a rash purchase that ups your credit card debt again and gets you back into the debt cycle all over again.

If you are having trouble stopping spending try to visualise how good it will feel to be debt free or try to visualise how bad it will feel to lose your home.

Remember if you find yourself with a level of debt that is causing your to lose sleep —you are not alone and there are ways to deal with it.

  • Minimise your interest rates by taking advantage of interest free credit card deals


  • Shift debt from a more expensive card to a cheaper card – even if there is no 0% deal it will still cut down your interest payments, just check any transfer fees.


  • Talk to your bank, loan provider or credit card company and ask for their help in reducing repayment amounts. You may be able to extend the period of a loan for instance and there are still ways to get a loan even with a bad credit score.


  • If you are paying for a loan for an item you don’t need then stop it – do you for example have more than one car in your household? Could you manage with just one. That is a quick and easy way to reduce your outgoings – and you might just get healthier in the process by walking everywhere – or at least to the bus stop.


  • Another way to deal with debt is to consider debt consolidation if you have a large amount of debt (there is a usually a minimum that you can consolidate). The can be a good way to cut back on the expensive interest rates found on some loans like bad credit loans.


  1. I recently completed my IVA and having looked at my credit score of 145 I’m wondering – how do I start to clean all of this up? Bearing in mind I won’t be allowed any kind of credit (which I don’t want anyway). I suppose I just let it sort itself out? I take it my IVA still stays on my file for the amount of time originally stated? Is my IVA actually visible on my credit file? I couldn’t find it on there myself.

    The only ongoing direct debit I have is for broadband/landline and that’s it! Other bills and council tax are included in my rent.

  2. I’m going to tackle my credit file – via the three main companies that have a file. It’ll be great to see exactly what’s going on from their perspective actually! I expect there’ll be much to question and put right; but hopefully not.

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