With everyone feeling the pinch due to the cost-of-living crisis, it can be tempting to rely on credit cards and loans to make ends meet. But has the situation spiralled, with debts now outpacing your income? In this article, we discuss ways to get help with managing debt. Our first recommendation is to speak with a broker who can provide professional advice tailored to your situation. Feel free to email us directly by replying to this message.
 
To start, consider these four steps:
 
Step 1: Assess your situation — do you need professional help, or can you manage your way out of this?
 
Step 2: Identify easy savings — review your budget, check your benefits, and look for discounts.
 
Step 3: Explore tougher savings — could you downsize your car, cancel subscriptions, or switch to more affordable alternatives?
 
Step 4: If you’re still struggling, consider reaching out to a non-profit debt charity for further assistance.
 
Refinancing to Consolidate Debt
Like many in the UK, you might have multiple debts, such as a home loan, credit cards, or personal loans. Managing several repayments can be stressful and overwhelming.
 
How Can We Help?
A broker or financial adviser can recommend the best debt consolidation strategy for your needs. If you’re a homeowner, consolidating your debts into a second charge loan could simplify things by giving you just one monthly payment to manage. This can reduce stress and make your finances easier to handle.
 
Balancing Manageable Payments with Long-Term Costs
Opting for a loan with a competitive rate can help make your monthly payments more manageable. However, in general, this type of debt consolidation may result in paying more over time and extending the repayment period. While this spreads out the debt, it can provide immediate relief by reducing the strain of monthly payments.
 
Understanding the Bigger Picture
While debt consolidation can offer immediate relief by simplifying your repayments, it’s important to address the underlying causes of debt. A broker can provide valuable advice to help you budget, manage your money more effectively, and work towards long-term financial goals.
 
Remember, this is general guidance. Chatting with us directly will allow us to provide advice tailored to your specific situation. While additional borrowing through a second charge loan can be a useful solution, please be aware that your home could be at risk if payments are not maintained.