According to Aviva, UK families have, on average, just £8,000 worth of unsecured debt. At the upper end of the scale, reports debts in the region of £15,000. Note: this figures come from credit cards, loans, overdrafts, etc. This figure does not take into account mortgage figures. Ouch!
I’ve been there. In fact, I’m not fully out of the woods yet. I still have about £2,000 of credit card debt but I’m working hard to pay it all of by the end of this year.
Why Is It So Easy To Get In Debt
Because money makes the world go round. The more money we have the better we feel. Banks know this. Creditors know this. Pay day loans companies know this. They’re all lining up to give you the cash that can be used to fill the void between you and the Jones!
It may sound harsh but it’s true. We all like the good things in life and every year those good things get a little more expensive. Inflation rises and drags the cost of your morning coffee kicking and screaming with it. Just keeping up with the cost of inflation is bad enough.
Then there’s credit card debt. Even a relatively inexpensive card can carry a rate of well over 10%. Some store cards will charge you 20% interest upwards for the privilege of using them. All those interest payments soon add up, costing you a fair chunk of your hard earned wages.
Don’t forget your credit score. Having a mountain of debt will harm your credit score.In turn, this fact will limit your ability to shift debt onto 0% credit cards or take out consolidation loans.
Here’s The Good News
This week will be dedicated to the dark art of helping you get rid of your credit card debt. I’ll deal with other loan killing strategies in a later series. From now until Friday I’ll be presenting a selection of tips designed to consign your card bills to the bin.
I’ll be updating the posts here each time I upload them. Rather than trying to find each one as it’s published, simply bookmark this page and check back every day.
Here are the topics we’ll cover:
Tuesday: How To Reduce Credit Card Interest Rates – I know, that’s an obvious answer but how many of us have actually managed to take this step? To be truly debt free you first need to stop yourself from sliding ever further into debt, but how? Come back and see on when the link goes live.
Wednesday: Snowballing Debt. Forget quaint images of happy kids in the snow. This is all about how you can slash the size of your debts and repayments schedule to the bone. It’s not easy, it requires discipline but it works. Read it, do it.
Thursday: You’ve got the idea now it’s time to start hitting your bills where it hurts but you might need a little help. Extra cash will go a long to helping cut your debts so today we’ll be looking some ways to make extra money
Friday: It’s the final day in our debt hit list. Today I’ll be talking about some of the big mistakes you can make as you start to steam ahead with your new financial plan. Here are a few mistakes you can make in your debt elimination plan. Once you’ve finished reading you can start attacking your debt with a vengeance.