Giving Euro notes(Image: Getty Images)

3 steps to get out of debt before Christmas

31 Oct 2024, 10:07 by Megan Martin · RSVP Live

With the cost of living crisis an increasing number of us are falling into debt, often relying on credit cards and short-term loans to get through to payday.

Having debt can have a crippling impact on our emotional wellbeing and mental health, and according to Google trend data, the search term debt and depression has received a 9.900% uplift in the past 3 months. Such an increase reflects the emotional turmoil debt can cause.

Here, MoneyPlu s presents how to navigate the emotional stresses of debt along with 3 proactive actions to become debt free.

Log Your Wins

Keep a diary of all your progress. Whether it’s paying a minimum payment or skipping buying a takeaway to save money, keeping a diary of positive actions that you have taken to aid in gaining financial freedom. Keeping a log of all your financial wins serves as an asset to refer to when you are feeling anxious about your debt. This works to boost morale as well as provide motivation to carry on.

Don’t Ghost Your Lender & Ensure Payment Plans are sustainable

It’s easy to bury your head in the sad when you feel overwhelmed, intimidated and worried however, talking to experts can reveal opportunities that you never knew existed. For instance, Individual Voluntary Arrangements (IVAs) offer personalised repayment plans tailored to individual financial circumstances. Ensure that any payment plan that you agree to is sustainable for you in the long term, and not just a temporary solution.

Tackle it Head On & Research Your Choices

There are several ways to tackle debt and chances are, a lot of them you have never heard of. DMPs (debt management plans) can be an essential for anyone looking to alleviate the burden of multiple unsecured debts such as credit card bills, payday loans, and overdrafts. Finances and debt can feel like a taboo subject however, instigating open and honest conversations with professionals will likely present the opportunity to uncover solutions you didn’t know existed.