Debt Management

How to Take Back Control of Your Finances: Step-by-Step Guide

Step 1: Face Your Debt Head-On

Before anything else, collect a full list of every debt you have, from credit cards & overdrafts to personal loans & mortgage arrears. Write down the outstanding balance, interest rate, & minimum monthly payment for each. Don't shy away from checking your credit report (try Experian, Equifax, or TransUnion) to spot any debts you may have forgotten. At Mortgage & More, we know seeing the total can be overwhelming, but our experienced advisors are on hand to help break it down & clarify your next move.

Step 2: Prioritise Your Debts

Not all debts have the same consequences if you fall behind. Priority debts include your mortgage or rent, council tax, energy bills, & any court fines. These must be paid first to avoid losing your home or having essential services cut off. Non-priority debts like credit cards, catalogue debts, & unsecured personal loans can be sorted after you've covered the basics. Our impartial team at Mortgage & More can advise on which debts to tackle first & give you reliable debt advice & solutions in the UK.

Step 3: Make a Realistic Budget

A solid budget is the foundation of good debt management. Take your monthly income (after tax), then subtract necessary expenses like housing, utilities, food, & travel. What's leftover is your available money for debt repayments. Cutting back on luxuries such as meals out or unnecessary subscriptions can free up more funds. If you're feeling lost, our mortgage guides can help you decode jargon & set realistic spending plans.

Step 4: Choose Your Repayment Strategy

There are two main debt repayment strategies UK borrowers use:

• Debt Snowball: Focus on clearing the smallest debt first while continuing minimum payments on the others. When that debt is cleared, move on to the next smallest. This method offers motivational quick wins.
• Debt Avalanche: Start with the debt carrying the highest interest rate, saving you the most money in the long run.

Both approaches work, it's just about finding what's right for you. Our experienced advisors can help you set up the best debt management plan.

Step 5: Communicate with Creditors

If you're unable to make a payment, contact your lenders before you miss the deadline. Many companies are willing to offer support if you ask early, such as payment holidays, reduced interest, or extending your loan term. We're on hand at Mortgage & More to offer advice throughout these conversations & help you feel confident in your negotiations.

Step 6: Seek Professional, Impartial Help

Sometimes debts become too much to manage alone. You can access free, confidential support across the UK from debt charities & advisers. As a Qualified & Accredited Mortgage Broker in Kent, Mortgage & More offers impartial debt management plans UK clients trust, & if specialist intervention is needed, we can guide you to the right agencies.

Step 7: Avoid New Debt

While repaying existing debts, it's vital to slow your borrowing. Put your credit cards aside or adjust your banking app settings to prevent new use, switch to cash or debit card only, & think about building a small savings pot for unforeseen expenses rather than turning to credit.

Step 8: Rebuild Your Credit Score

Once you have your debts under control, focus on improving your credit. Always pay bills on time, keep credit use below 30% of your limit, & consider a credit-builder card, which you pay off in full monthly. These steps help show lenders you're reliable & boost your financial health for the future