With more and more people finding it difficult to keep their heads above water these days, it is important that they do not just bury their heads in the sand. If you are one of these people this article will help give you an insight into what you can do to put your finances back on track.

The first step should always be to work out exactly where you stand, by writing down a comprehensive list of all your out-goings each month. You need to make sure that you include a monthly expense for petrol, clothing and food as well as regular bills and credit repayment. It probably makes sense to have your last bank statement in front of you when you do this so you do not forget anything. You should also write down any money that you may have coming in each month, so you know exactly how much you can afford to spend each month on repaying your debts. You should also look closely in order to try to identify any potential savings that can be made to put more money back into the pot. Maybe you could cut back on your sky subscription, or find a cheaper provide for your utilities, there are some good savings to be made if you are not with the cheapest provider.

Assuming that you are in the situation that you are not earning enough to survive financially each month you need to do a number of things;

1. The most important bills i.e. your mortgage and utility bills should never be missed. It is of the utmost importance that you always make regular payments to you mortgage or your lender may seek to re-possess your home. You could always approach the lender and request a payment holiday or perhaps extending the term of the mortgage to reduce the payments.

2. Contact the lenders that you owe money to and explain your current situation to them, tell them that you have worked out what you can afford to pay them each month and as if they would freeze any interest and late payment charges while you sort yourself out.

3. If you feel uncomfortable about contacting your creditors yourself, you need to seek the help of a debt management company or some other form of debt expert. Things never improve by ignoring them in fact quite the opposite they quite often get worst.

Depending on your financial circumstances a debt management company may well recommend either a debt management plan or an IVA (Individual Voluntary Arrangement). Either of these options will probably mean that your overall debt will be reduced and in most cases the interest will also be frozen. They will both mean that you will no longer have to receive threatening letters from the lenders anymore as all future communication will go through the debt management company. All this goes a long way to helping you to get your finances back on track and relieving the pressure of not knowing how you are going to pay your way each month.

Author Bio: Tom Dawson is a UK finance expert who specialises in all kinds of debt help and advice from debt consolidation loans to debt management. Visit the site today see what we can do for you!

Category: Finances
Keywords: debt consolidation, debt management, debt help, IVA