If you’ve got finance trouble, you’re not alone.  With the rise in interest rates, anyone with credit cards, mortgages and personal loans may now find themselves in an unfortunate financial position.  The important thing to remember is that you can get help, and there are ways to reduce your debts without having to sacrifice your future goals and dreams.

The first thing to do is to get as much of your documentation together as possible so that you (or an account or financial advisor) can figure out exactly what your financial situation is.  The sort of things you need to know are: mortgage or rent payments, utility bills, your average grocery spend (weekly, fortnightly or monthly), car, phone and internet expenditures, and any additional costs you may have (going out, clothing or entertainment purchases, child care or schooling fees, public transport costs, membership fees for gyms or clubs, and so forth).  The reason to get all of this information together is to figure out what your overall expenditure is per week, fortnight or month.  Once you know your total amount, you can compare it to your earnings and figure out what room you have to make additional payments on loans; or if you are currently running in deficit (debt), how much money you need to cut out of your expenditures in order to start making a dent in the amount you owe.

Having a budget is important even if you aren’t in financial trouble.  This can help you to contribute to your personal savings (you might be saving for a holiday, car, or house deposit, for example).  If you are in debt, it’s even more important to have a budget.  This will allow you to see exactly where all of your money is going, and you can then figure out what costs need to be decreased.  Usually something as simple as staying in an extra night or two every week or taking your lunch to work rather than buying take-away can make a huge difference to your financial situation.  Saving as little as £20-£50 a week really adds up over time, and you could find yourself completely out of debt within a few months if you make the effort to save.

If you’re still having trouble getting your finances in order, you may need to organize to see a professional.  If you have several loans or large debts, it may be a matter of having these debts rolled into one to save on interest.  If you are seriously in debt or are finding it increasingly difficult to keep up with payments and costs, you might need to consider something more serious, such as declaring bankruptcy or selling some of your assets.  The important thing to remember is that there are several organizations and companies around (aside from the banks and loans companies) that give advice on financial situations.  If you are in a low-income bracket, you may also be eligible for free assistance.  It’s crucial to get on top of your financial problems as soon as you see them, as this will make it easier to correct and will certainly give you peace of mind.