In an age where we are constantly told about rising debt levels and the problems that many people of all ages are facing in terms of personal debt, it is important to understand your own personal financial situation and formulate a clear and robust plan to manage the debt and pull yourself out of danger.
There are a few ways in which you can manage your personal debt, and take on short-term measures to assist you in times of hardship when other avenues are closed to you with a poor credit score (for example you can acquire a short-term payday loan with adverse credit, if your bank has turned you down for a loan). Just be careful that with any line of credit that you take out, you have an exit strategy and the means with which to pay the money back within the agreed timeframe of repayment.
One option you can take is to consolidate your debt into one single figure. For many people the most daunting aspect of personal debt is that there are just so many places that it is appearing. It could be that you owe money on a personal loan, your car repayments, a monthly credit card bill and a store card. Consolidating into one loan that covers all of your existing debt, and does so within a management framework of payments, is a fantastic way to lift the weight from the shoulders of many people looking for a way out of their personal debt.Another option is to make an extensive and thorough list of all of your current debt and the repayment dates and amounts each month. As a way of getting into a strong and consistent habit of paying off debt and clearing certain aspects of it, make a concerted effort over the course of a few months to eliminate the smaller debts. This is most likely in the form of store cards and the like. It will give you a sense of achievement that will stand you in good stead when it comes time to face down the larger debts that make up part of your list.
To truly come to grips with managing your personal debt you must understand it in full. Get in touch with the three credit bureaus in order to view the credit file that each has available for your personal circumstances. You can get your credit report from Equifax, TransUnion and Experian. Be careful to read through your report to find any mistakes that may have a long-term impact on your credit score. It is important that any discrepancies are flagged and that they hold accurate and up-to-date information on you.
Lastly, make sure that you are paying all other bills on time. The last thing that you want to do is to build up an even greater level of debt on top of the figure you are managing and attempting to pay down. It is possible to stay on top of debt repayments, whilst paying off payday loans on time, keeping up with credit card repayments and paying your rent and utility bills on time, every month. That way you can bring down your personal debt, and improve your credit score at the same time.