Mad Rich

Right now it’s more than clear that the UK is undergoing something of a financial hangover. For many of us, after years of a credit boom, we’re suddenly reeling as the economy slows down and the debt begins to crunch. The media has made no secret that the days of cheap credit are over, but it’s not always easy to find a way out of debt if you can’t find more cash in the first place. However, there are plenty of options available to everyone, and numerous ways that people can recover from debt. Take a read of this article for a few pointers.

Transfer Your Credit Balance

If you’re paying for your credit card every month, then it’s time that you kicked yourself up the backside, got a balance transfer card, and start paying off as much as possible each month. While credit card is fairly easy to amass, it’s notoriously expensive, and can be difficult to pay off. Shop around for one of the best balance transfer cards available – Virgin Money comes as especially recommended – and transfer all of your existing balances onto that. Once this is done you won’t pay interest on your existing balance for a limited period - often over a year for the top cards.

Consolidate Existing Debts

A little like transferring your existing balance, you should take a look at where you have existing debts and look to consolidate them. Despite the credit crunch, cheap loans are out there and can still come in at less that 9% (A&L, Barclaycard and Asda for instance). If you’ve got large outstanding debts of over 10%, such as on multiple credit cards or loans, then think about getting a consolidation loan. This is where you take out a loan at a lower rate than your current debts, pay the latter off, and then make repayments to the new loan, with which you’ll incur less interest. Take a look at loans available from Alliance and Leicester for some of the best rates.

Think of Small Change(s)

While getting out of debt doesn’t often come quickly, there are small lifestyle changes that will help you along your way. For instance, do you take your own lunch to work or sit down at a caf? everyday? Even if you’re paying just £3.50 a day for lunch, you could take a monthly saving of close to £60 if you opted to make your own. What about that short drive to a friend’s house? Instead you could out all of those short and needless car journeys to make your wallet more secure. It’s small changes like these that will really help you.