Today is National Stress Awareness Day, and one of the biggest contributors to stress is money and debt, so Fairinvestment.co.uk is launching a free Guide to Getting Debt Free
and urging people who are worried about their finances to take action.
The latest quarterly research conducted by YouGov revealed that more than eight million British adults are in serious debt and 2.1 million are struggling with repayments. While many people are prepared to take action, millions are just getting themselves further and further into the red, with two million Brits admitting that they actually don’t know how much debt they are in.
“Debt is a real issue for many people in this country, causing stress, anxiety and even depression,” says James Caldwell, director of Fairinvestment.co.uk. “And although there are no secret formulas for wiping out debt, there are practical ways by which you can cut your expenses.
“The first step is to work out how much debt you are actually in – you can do this by getting a credit report – and the next is to admit that you need help.”
If you are struggling with your monthly outgoings, finding a more competitive energy provider or mobile phone service could cut your monthly bills. You can also switch credit cards to one with 0% in balance transfers to give you more time to get your finances in order. Switching insurance company for your home and car cover could also save money.
A remortgage could also ease the pressure. By shopping around for a better rate on your mortgage, you could really reduce your monthly payments. You can also use a remortgage to consolidate your debts by borrowing more, and using the extra to pay off your creditors.
But the simplest answer to money problems, says Mr Caldwell, is to cut down on your spending.
“It sounds obvious, but many people struggle,” he says. “You need to be disciplined with yourself – stop applying for loans and credit cards you don’t really need. Cut up credit and store cards to stop the urge of spending more and more on credit, and get rid of expensive gadgets that you don’t need, including pricey mobile phone tariffs.”
But whatever your debt situation, there is no point letting it get on top of you and stress you out, says Fairinvestment.co.uk.
Research from Fool.co.uk shows that one in six Brits have lied about their financial situation, more than one in ten don’t even open bank statements for fear of what they might find and 20 per cent get so stressed about their debts they hope they will all just disappear.
“Honesty is the best policy,” continues Mr Caldwell,” so be truthful about your situation, and then you can start doing something about it.”
Use Fairinvestment.co.uk’s Guide to Getting Debt Free