Managing your debts no matter how serious can be summed up as a simple series of steps know as the debt help pyramid. This site is built around these steps to help you as much as possible reduce your debts and get you life back.
- Work out your outgoings and your income. If you were planiing on driving to a strange conntry, you wouldn’t set off without a map. By creating a simple table detailsing your wages and what you spend, you are creating your own map.
- Does your spending and income add up? If you are spending more than you are earning, you have 2 basic choices. Either you have to reduce your spending, increase your income or both.
- Need to decrease your spending? Work through every one of your outgoings and ask yourself 2 questions. Firstly do I need this? If you do, then ask yourself if there a cheaper way to do this. If you don’t need it then great, cross this straight off your list. When you have done this recheck your balance. Still spending more than your income? Then onto the next step.
- Can you increase your income? Can you work more hours, overtime, maybe an extra or part time job?
- Now look at the difference between your income and your expenditure again. If you are spending all of your income this is not sustainable. It leaves you with nothing in reserve for big bills and would force you to fall back on credit cards, payday loans and other forms of credit.
After working through all of these steps, if the difference between your income and expenditure is negative, then you need to get help as soon as possible.
