Tips to Avoid Debt | Debtsolver

Debt Solver is a member of DRF (Debt Resolution Forum). The Debt Resolution Forum promotes professional standards for resolving debtors' financial problems, focussed on the quality of advice provided to consumer debtors by all DRF members.

"Mike owed £15,040... He's now paying £255 a month instead of £500."
Mike

"Neil owed £30,526... He's now paying £255 a month instead of £908."
Neil

"Jessica owed £38,510.86... She's now paying £492 a month instead of £1272."
Jessica

Tips to help you stay out of debt

It's well known that being overwhelmed with debt can affect your decision making, and in extreme cases your health. The hardest step for many is approaching someone for professional debt advice. If you're not ready to make that step yet, then we have listed a few well known tips for coping with debt problems, but one should always remember, each individual's circumstances are unique, and these tips for staying out of debt may not suit everyone's circumstances.

Many believe it's best to avoid any offers that provide long-term 'interest free' credit, for example, even though they may be very attractive and tempting, make sure that you read the fine print to look for excessive late payment charges or hidden fees. Store cards may also look attractive as they often give a free gift or let you save money on your first purchase. However, some cards have interest rates of almost 30% APR. If you come across an opportunity to transfer an existing balance on either a credit card or a store card to those that have 0% interest on transfers, then you should opt for this, but again, be sure to read the small print carefully and of course you should shred the old card.

You should avoid credit card cheques that can be used at retailers where credit cards are not accepted (these cheques are usually sent out with statements). These cheques are sometimes far more expensive than other methods of payment and most retailers accept credit cards these days.

People who have debts on their credit card or store cards could benefit from consolidating their debts into a secured or unsecured personal loan or a debt consolidation loan with a lower APR.

Also, if you frequently use your bank account overdraft, be careful that your bank has not increased interest rates on authorized overdrafts, as some banks have recently increased rates. Your bank may have even removed the "buffer zone" on current accounts. These buffer zones are used to prevent customers from being charged a fee if their account goes into the red by a small margin.

Finally, use the resources you have available to you such as this publication and advice that can be given by various organizations such as Citizens Advice (citizensadvice.org.uk), the Consumer Credit Counselling Service (cccs.co.uk) and of course free, non-obligatory advice is available from Debtsolver.

Article first published 16/01/07

Request a call back from one of our consultants

First name

Last name

Home phone number

Mobile number

Postcode

Email address

Total unsecured debt

Are you a home owner?
yes No

Equity amount

When should we call you:

I accept the Privacy Policy

7 Card Tricks to Deal with your Debt
yourself of bad debt isn t going to happen by magic There s no quick fix ...

Financial Fallout – See the Signs
are the ten early warning signs that point to impending debt disaster Be sure to look ...

The Five-Step Plan to Clear Debts
this five-step plan from the dedicated financial advisors at Debtsolver and make the year you free ...

Lack of debt help ‘forced’ Dannii Minogue to strip for Playboy
Minogue has recently revealed that the pressure of her severe debt problems forced her into posing ...

Remortgage and Save!
vast majority of households in Britain will find that their single highest expenditure is their mortgage ...