In January 2015, it was reported that personal debt levels in the UK had reached a seven-year high. Debt is something millions of people struggle with and it’s incredibly easy to fall into. If you miss just one payment on a credit card for example, you could soon find yourself spiralling into a serious debt trap.
The good news is, there are ways you can avoid falling into financial debt. From managing your assets to your monthly outgoings/incomings, below you’ll discover the best way to avoid getting into debt.
Managing your assets
If you’re already struggling with debt, it’s possible to get yourself out of it by managing your assets. What does this mean? Well, your personal assets include things like your car, jewellery, appliances and even your home. It is basically anything you personally own that is worth a lump sum of money.
You can choose to sell your assets to pay off your debt. Selling your car for example, could free up thousands of pounds that could be paid towards your debt. For those in extreme debt, selling your home may be the best, although most devastating, option.
Selling your home via normal channels can take months, if not years. If you need cash quickly, there are companies out there like Quick Move Now, which specialize in buying out property for cash. Funds are available to immediately purchase your property so this could help you out if you’re in desperate need of a quick sale.
Managing your money
There are also ways you can limit your chances of falling into debt in the first place. Managing your incomings and outgoings is one of the best ways to keep track of your spending.
Make a list of all of your outgoings. This includes bills, as well as personal spending. Often people don’t realise how much they are spending on things they just don’t need. Once you know where your money is going, you can work out whether you can cut back on certain purchases.
Overall, debt is a very stressful and often devastating thing to go through. There are ways out of it however. Selling your assets is one of the quickest ways to get a large sum of money you can put towards your most crippling debts. It’s also a much better alternative than to acquire a personal loan, as with that you are simply switching debts, rather than paying them off.