subject: Debt Advisers - What Help Could They Offer Me? [print this page] Debt advice is available from many organisations, often for free. But what form might that debt advice actually take?
We will now take a look at just two of the ways in which a professional debt adviser could help you manage your finances more successfully.
Debt advice - budgeting
Budgeting is all about controlling your finances - something which starts with understanding them.
You should start by adding up your total monthly income and subtracting your total monthly expenditure, to find out how much of your available money you're using on a monthly basis.
However, this may be harder than it sounds. Some costs, such as mortgage/rent payments or council tax, should be easy to work out, but other costs, such as petrol, utilities and food, may be harder to predict as they'll change each month.
A professional debt adviser should be able to offer you pointers on how to draw up a realistic budget and how to keep track of your finances more effectively. Once you can confidently track where all your money is going each month (on average), you should be able to plan ahead more effectively. You should also be able to figure out if (and where) you're spending money you should be using to repay your debts, among other things.
Something else you should consider is making a spending diary to note down everything you buy on a daily basis. This will give you a transparent picture of your finances and will allow you to easily identify areas you can make instant savings. Many people find that they are spending more than they realise on things like coffee and parking and its easy to make instant savings.
Debt advice - negotiating with creditors
Your creditors are aware that anyone's circumstances can change. If your financial situation deteriorates and you can no longer afford to make payments to your debts, then you should contact your lenders at once and explain to them what you calculate you can actually afford to pay each month.
You may be able to negotiate with them, asking them to accept lower monthly repayments until your situation improves. A professional debt adviser should be able to offer you tips on how to negotiate successfully with your creditors.
Whatever you decide to do, identifying a problem and addressing it is very important, ignoring your debt will only ensure that it grows and grows.
For more information, and/or for further advice, you should contact a professional debt adviser.
by: Melanie Taylor
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