You can easily understand what is the meaning of bad financial phase and also being in the obligation of ‘many loans’. Personal loans, car loan, home loan, small business loans, 12 month loans we borrow funds for almost everything. However, situations act strange when we fail to pay them. You start facing difficulties in making the repayments of the loans.

Stimulators of this can be many. Perhaps you lost the job suddenly or have a new baby in the family with many mounting expenses. It can also be a disease that stayed for long than expected. The list is long enough to cover a few miles of a long road but you need to work on the ultimate result. If you are facing the mess on finances and find prioritising between the debt and other expenses then pay heed to the following.

Regain control – Say no to negative emotions

This is normally not the first suggestion you get but it is vital. The first thing is not to start working on your money matters but to work on your own emotions. You may start working on the finances but if you are feeling stressed, not for long, your concentration will stay with you.

First of all, get control on your own and try to stay positive. If happiness does not stay permanently, why the bad times will find space in your life. Especially, when you are determined to send them away, they cannot dominate you. Do not let the financial mess affect either you or your relation with your family members. Big tasks get done with collective efforts only. Accept your situation as this helps in making the right choices.

Go for a financial advice

Money matters need professional treatment and a financial advisor can be the one with all the required skills. Find one with whom you will discuss everything to find out practical solutions. There are experts for every issue in the finance industry. There are advisor companies that even deal in worst credit score cases and suggest people to take very bad credit loans by direct lenders. You know what these loans do, borrow funds, repay on time and at the end of the tenure get an improved credit score.

Tell your financial advisor to find such useful solution for your situation too. For instance – may be you can go for debt consolidation to make all your instalments one on a fixed rate.

Cut your expenses and make one extra payment every year on long-term loan

It is necessary to reduce your expenses, you can use that saved money to pay the loans faster. With small loans, it is necessary to keep working on big debts. Small ones you can integrate easily through debt consolidation but the big one demands a separate space. By making one extra payment every year, you can bring the difference. For instance, if you have a home loan and yearly you pay £8000 then divide it with 12. The amount is £666.6, at the end of the year, pay one extra instalment of this amount. You may not realise but this helps lessen (in positive manner) your debt burden.

Do the same with the monthly payments

If the above suggestion of one extra yearly payment is not suitable for you then this one is next in the options. Whatever is your monthly payment, divide it with 12(again). For instance – if your monthly payment is £1500, divide it with 12. This becomes £125, now add this amount in all your future monthly instalments. This hugely helps to reduce the principal amount and it prevents the accumulation of interest.

Do not take any new loan until you pay off the current ones

This is specifically for all your small and short-term loan obligations. Pay them off as soon as possible. Do big part payments, it reduces your instalment amount. Besides, pay off completely those that are small in amount. Whatever way you choose but make a commitment to yourself that you will not take any new loan until the current obligations are paid off. No matter how little is the loan amount or how affordable it looks. This rule is sure to bring a positive change in your financial situation. Keep control on your desires, as this can be your last chance to break the vicious circle of debt.

The above ways are important, practicable and useful. It is necessary to keep a control on your debts as financial chaos gains size in a short time. Peace of life is in self-discipline, it is better to accept it AS SOON AS POSSIBLE.

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