Debt can often affect us mentally, let alone financially. It’s important that we talk about debt openly, and also acknowledge when we have debt too. It’s so easy for us to ignore a debt problem, and spiral further and further into debt (we’re speaking from experience here).

The first tip we have to help clearing your debts is to consider which one of your debts (if you do have more than one) is the most expensive – how much have you got left to repay, and crucially, what is the interest rate? Once we’ve found the most expensive debt, we know to focus on paying this one off first.

Once we’ve considered our debts, we can then prioritise how to pay them. Set aside some money from your budget every month to allocate to your debts, and pay off those expensive ones first of all.

Now, you may find some advice online that suggests opening a savings account before paying off your debts, but our top tip would be to clear those debts first, before your start putting money elsewhere.

Our next tip would be, if you can afford to, is to pay more than you minimum balance. This will have a positive impact on your debt, you’ll pay it off faster, pay less interest overall and also, it may look favourable to your credit score.

You might also consider taking out a consolidation loan to combine your debts. Depending on how much debt you have, a consolidation loan may effectively reduce your interest rate per month, and help you budget better for paying the debt off.

Our final tip for helping you clear your debts, is to run a bank statement audit… go through your bank statement for the past 3 months and check where the payments are going. Is there a rogue payment of £15 a month to a subscription you don’t use anymore? Perhaps you’re paying twice for pet insurance (yes, another ‘from experience’ here!). This should help you cut down on some payments, and if you have the room in your budget, you can shift that money to paying off your debts instead.

We hope you found our blog useful, and if you have any questions about our consolidation loans, please do get in touch.