Top 5 ways to improve your debt management skills

13 July2021

When it comes to managing your debts, there's no single 'rule of thumb' for how you should do it.

The most important thing is to find a way of keeping on top of your debts that works for you - and helps you avoid falling into any debt problems further down the line.

Here are our 'top five' ways you could give your debt management skills a bit of a boost:

1. Work out how much you can realistically repay

The current climate is a difficult one, and rising prices and squeezed budgets are a reality that's impossible to avoid for the vast majority of us.

This makes staying in control of your debts even more crucial - and working out exactly how much you can afford to repay every month is an essential part of doing this.

You should sit down and draw up a budget for all your monthly income and outgoings. Once you've done this, you'll be able to calculate how much you'll safely be able to put towards each of your debts per month without putting other areas of your finances at risk.

You can read our guide to planning your way out of debt here.

2. Set repayment reminders

It often seems like we don't have a minute to spare in modern life, with work, family and household commitments all filling up our diaries.

Making your debt repayments on time should be another priority. Missing payments could lead to a damaged credit rating and extra fees and charges, which could have a big impact on your financial wellbeing.

If you're worried about forgetting payments, why not set a reminder on your phone, keep a 'payments diary' or even stick a post-it note on your fridge to make sure you stay on track?

3. Why not set 'debt goals'?

Knowing what you need to do to manage your debts well is one thing; staying motivated is often another.

Consider setting yourself goals to meet with your debts. Could you increase your payments a bit more every month and pay them off faster? Could you clear your credit card balance in full by a set date?

As long as your targets are realistic, there's no reason why you shouldn't be able to stick to them. It should help you stay motivated - and some moral support from friends and family could help you along the way!

You'll find more expert debt advice and tips on this page.

4. Regularly review your finances

Our finances aren't fixed. We all have ups and downs with our money at times, and our circumstances can sometimes change beyond our control: e.g. if we have to take time off work due to illness.

With this in mind, you should keep an eye on your financial situation, and may need to try and adjust your debt repayments accordingly. Don't be afraid about talking to your lenders if you need to. Just make sure you understand all the consequences before you commit to anything.

Which brings us on to our last tip.

5. Get advice if you need it

You don't have to deal with your debts alone! If you have any worries about repaying your debts, or you simply want a professional opinion, speaking to a debt adviser could put your mind at rest.

Try our debt solution finder

Answer a few simple questions and find out which debt solutions could help you, based on your circumstances.

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Please remember, this is just an information tool. We would always recommend you speak to a debt advisor for the most appropriate way to resolve your debt problems.
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Tags: debt, debt management, debt management skills, skills, managing debt, get out of debt

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