How to get out of debt

When you’re in debt it can sometimes be hard to imagine an end to the financial stress you’re dealing with.

The recession combined with inflation rates and sky-rocketing prices on general living costs have only contributed to the nation’s financial woes – making it harder for people to manage debts alone.

At Baines & Ernst, we’re on your side and are here to help you get back in control of finances – and it all starts with our three steps to getting out of debt…

Step 1: Break the silence

It’s easy to feel isolated when you’re in debt. Some people may feel embarrassed or worried about what their friends and family will say.

Keeping your debt problems bottled up will only make matters worse – and the sooner you talk about your debts – the sooner you can get your debts under control.

There are thousands of people in the UK going through what you’re going through – so it’s important to remember that you’re not alone.

Speak to someone you trust or if you want to get professional advice first, speak to our friendly team. We’re not here to judge you – we’re here to help you find a way to beat debt for good.

Step 2: Get a true picture of your debts

Get your bank statements out and have a look at what you pay for each month. Our Income and Expenditure form will help you to put together a list of all of your outgoings including all your household bills, rent / mortgage, food and travel costs for example.

Then write down a list of all your debts – including loans, overdrafts, catalogue account, credit cards, store cards and payday loans, and the total amount outstanding on these debts.

Once you have all this information in black and white, you’ll be able to see how much you owe and how much of your salary goes towards paying all these bills.

This can seem like a daunting task, but if you’d like some help our friendly team is only a phone call away.

We could complete a financial review with you, detailing everything mentioned above, and then based on this information we could help you find out if your debt problems could be resolved with a Debt Management Plan, IVA, Protected Trust Deed or a Debt Relief Order.

Step 3: Make a ‘get out of debt’ action plan

Once you know how much money you need to pay for your rent / mortgage, household bills, clothing, travel and food every month, we could help you find an affordable way to repay your debts.

We could help you to:

• Consolidate debts into a lower, more affordable monthly repayment with a Debt Management Plan
• Freeze interest and charges and write off debt with an IVA or a Protected Trust Deed
• Be free from debt in 12 months with a Debt Relief Order

All it takes is one call to our friendly team to find out which debt solution will suit you best.