It seems like an obvious statement, reducing debt is great for your wellbeing. Still, you might be surprised at exactly how beneficial reducing debt is for increasing your quality of life and improving your relationship with money.
One of the biggest causes of financial stress is significant credit card debts. A UK household’s average personal debt is £2,033 in 2021 and a total UK national debt of £56.6 billion. Stress due to financial worries can manifest itself in different ways for everyone, whether it is excessive worry, lack of sleep, or inability to focus. The solution? It’s virtually impossible to avoid all debt, but good financial management and debt reduction can significantly reduce stress.
The first step is to be completely honest about your financial situation and then to make a realistic plan. For example, contact an online mortgage broker like Trussle to discuss remortgaging. You might be surprised how much you can save on monthly repayments. Experienced mortgage advisers have a complete view of the market and can find the best interest rates available to you and Trussle’s new mortgage in principle (MIP) service can check your credit score and speed up the process. Knowing you are paying the best possible mortgage rate and even reducing the repayment period can give you great peace of mind and help you on your way to reducing debt.
Have you been dreaming of that trip of a lifetime, getting married, buying your first home, or starting a family? Debt can really hold up life plans if left unchecked. Living on a budget and making big changes to reduce debt can seem like a difficult prospect, but it will significantly improve your lifestyle in the long run. It is a false economy to continue to live beyond your means and will ultimately lead to stress. Remember paying off debt will only last for a limited time, but reducing debt and improving your finances could mean buying your dream home.
Unmanaged debt has been proven to contribute to the breaking down of relationships. Heavy debt can be incredibly straining. It can be a difficult conversation to have but discussing debts openly and honestly is essential. The next step is to communicate clearly how you will reduce your debt as a team. If everyone does their part, it will positively impact your relationships. How negatively or positively you deal with debt also sets an example for your children. Paying off debt is good for your financial health and yours and your family’s relationship with money and spending.
Start reducing your debt today with some simple steps:
- Keep a budget. Start and keep to a monthly budget. The small things add up, so make sure you take every small expense into account and see where you can make savings on groceries, eating out, etc.
- Find a suitable method for reducing your debt. There are different strategies for reducing debt. Find the one that works best for you.
- Whatever you do, don’t be tempted to take on any new debt, even a small credit card or loan.