Six Ways To Clear Your Debts.

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(ThyBlackMan.comBorrowing money. No one likes to do it unless it’s for positive debt such as getting a mortgage for a new house or going to college. While it’s a part of life that most people don’t enjoy participating in debt, it’s also a necessary part of it for a lot of people. The thing is, too much debt can be expensive, and while you may be managing it quite well right now, you could find that if you lost your job or suffered an injury, you’d be in a lot of hot water and the current pristine credit score that you have? It would be down the toilet.

Now, it’s important to know that there are circumstances when borrowing is absolutely okay to do. Any circumstance that you can manage and you deem necessary is a good thing. However, debt can easily build up and it’s important to know how you can manage it so that it doesn’t spiral out of control. If you get too far into debt you will need to know how to get out of debt. Understanding how to balance your debts can be the first step to getting through in one piece, and we’ve got six ways to clear those debts down.

Add Them Up.

Start by adding up all of your debts. Go down your credit file and your regular repayments and make a list of all the debts that you pay out for each week or month. It doesn’t matter if it adds up to a lot more than you thought, because the idea is to learn to manage them. If the debt is a small one you could consider looking at SPD to pay everything off together and have a small repayment just the once; which could be excellent for your credit rating! The key is knowing the amount that you have to pay so that you can start moving forward.

Prioritize Your Debt

Now you know what you owe, it’s time to put them into the right categories – priority and non-priority. The debts that you must pay no matter what, include;

  • Mortgage
  • Loans that could be secured against your car or home
  • Gas and electricity bills
  • Court fines
  • Child maintenance debts
  • Any hire purchase agreements
  • Taxes

If you neglect these debts, you could lose your home, meet new bailiffs as they take your possessions and even end up in front of a judge. Let’s avoid that, shall we? The non-priority debts include:

  • Credit card debt
  • Loans
  • Overdraft facilities
  • Money borrowed from friends

Of course, these are important to pay, but they’re secondary to your other debts.

Shifting It

Decreasing the cost of your debt is a goal that you should have, but it can help to have all your debts in one place like we mentioned earlier about paying them off with a payday loan. Consolidation is a smart plan, and while it may seem like borrowing is a bad idea, it’s actually one further borrowing tool before you can get rid of the debt for good. Plus, you could easily end up paying out less each month, freeing up some income to use in other places if you wanted to.

Find Extra Cash.

It’s always easier to pay off your debt if you can make extra money or find extra money elsewhere. You can do this by budgeting your cash a little closer, selling your belongings, reclaiming on mis-sold insurance – each of these things can bring you that little extra to help you to pay off your debts and reach financial freedom.


Did you know that you could get extra grants for your home or business if you are in large amounts of arrears and need some help? Many people aren’t aware that there is help for those on low incomes, you just have to get some of the research done to find it.


If you have a savings pot, then it’s a good way to start paying off debt. You may have it aside for a reason, but if paying the debt down could free up the income, then it makes sense to ensure that you use it. Always check that you won’t end up with any penalties for paying things off early, though. You don’t want to end up in more hot water with your finances.

Paying off debts isn’t something that everyone has the luxury of doing early, but if you want to get your finances back on track, you need to look into some of the ways you can cut what you pay on interest.

Staff Writer; Jesse Wall