Manage Debts – Simple Steps to Take Control of What You Owe

Feeling like your debt is a mountain? You’re not alone. Most people hit a point where bills, credit cards, and loans start to feel unmanageable. The good news is that you can bring it down to a level you can handle.

Why Debt Feels Overwhelming and What to Do First

The first thing to realize is that debt isn’t a mystery – it’s a list of numbers you can see and act on. Grab a pen, a notebook, or open a spreadsheet and write down every amount you owe, the interest rate, and the minimum payment. Seeing the total in front of you stops the “out of sight, out of mind” trap.

Next, sort the list from the highest interest rate to the lowest. That tells you which balances are eating up the most of your money each month. Pay at least the minimum on every debt, but throw any extra cash at the highest‑interest one first. This “avalanche” method saves interest faster than paying off the smallest balance first.

If you notice you’re being turned down for a debt consolidation loan, don’t panic. The post “Can You Be Denied Debt Consolidation?” explains common reasons – like a low credit score or too many recent credit checks. Fix those issues first: pay down a small balance, correct any errors on your credit report, and wait a few months before re‑applying.

Practical Ways to Keep Your Debt in Check

Cutting back on spending doesn’t mean you have to live on crackers. Look at the categories where you spend the most – maybe it’s eating out, streaming services, or impulse shopping. Cancel or pause any subscription you don’t use weekly, and use cash or a prepaid card for discretionary buys. The money you save goes straight to your debt payments.

Consider a “budget‑first” approach. Before you pay any bills, allocate a fixed amount for debt repayment. If you earn £2,500 a month, decide that £500 will go straight to debt each payday. Treat that amount like a non‑negotiable expense.

Beware of “zombie loans.” The article “Zombie Loan: What It Means and Why You Should Care” warns that rolling over a loan without reducing the principal can trap you in endless payments. If a lender keeps extending your loan, ask for a clear repayment schedule or look for a different loan that forces you to pay down the balance.

When you have multiple debts, a debt‑management plan (DMP) through a reputable credit‑counselling service can help. A DMP consolidates your payments into one monthly amount, often with reduced interest. It’s not the same as a formal consolidation loan, but it can give you breathing room.

Sometimes a small side‑hustle can speed things up. Even a few extra hours a week delivering groceries or freelancing online can add £100‑£200 a month. Put that straight into the highest‑interest debt and watch it shrink faster.

If you own a home, pulling equity might sound tempting, but use it wisely. The post “When and How to Pull Equity from Your Home” stresses that borrowing against your house should only fund essential expenses or high‑return investments, not everyday spending.

Finally, keep an eye on your credit score. A higher score can unlock lower‑interest consolidation offers later on. Pay all bills on time, keep credit‑card balances below 30 % of the limit, and avoid opening new credit lines unless you truly need them.

Managing debt is a marathon, not a sprint. By knowing exactly what you owe, tackling the costliest balances first, trimming unnecessary spending, and staying aware of dangerous loan traps, you’ll move from feeling stuck to feeling in control.