Tackling Debt

I’m in financial difficulty. What can I do?

The first thing to do is understand your financial situation by reviewing your financial circumstances, for example with the free budget planner located on the It’s Your Money website. Secondly, check if you have insurance (such as payment protection insurance) and, if you do, check your policy to see if you can make a claim. Thirdly, if you do have concerns, call us on 1800 546 262 and we can discuss the options available to you.

How can I cut my spending?

The first step is to create a budget and stick to it. Most bills are paid monthly so budgeting monthly is often wise too. To create a budget, work out how much you spend a month and compare it to how much you earn a month. The goal is to earn more than you spend and look for ways to reduce or eliminate altogether wasteful spending. Here are a few tips:

• Set up direct debits. This way you won’t forget to make any regular payments, and you’ll have a clearer picture of what you have left to spend each month
• Plan your shopping list and stick to it
• Don’t make large purchases spontaneously
• Review your service providers. Can you reduce your household bills or car insurance, for instance? Check out a price comparison website and see if you can get the same services for less than you’re currently paying
• Budget for ad hoc expenses. Set aside money for things like insurance payments, holidays or charity donations that come round once in a while
• Save for the unexpected – for example, car or home repair bills, healthcare and other emergencies. It’s worth considering additional insurance protection for you and your family.

Are there any resources available to help me reduce my spending?

There are several price comparison websites that can help you save money. They offer a free and impartial comparison service on household bills (gas, electricity, home and mobile phone, broadband and mortgage) quickly, easily and without hassle.

How can I reduce what I already owe?

• Once you have a monthly budget and start reducing your current spending, contact your lenders and creditors. There are lots of ways we can help you tackle your debts.
• Impartial websites such as It’s Your Money or the Money Advice and Budgeting Service(MABS) offer valuable information and advice on saving money and tackling debt