Debt management * get out of debt * reduce household bills * earn more money * by debt management * help and advice

Debt management is all about being in control of your finances. This does not mean just managing to pay your debts and bills, it is about being in control of every aspect of your life.

What you buy, when you buy it, why you buy it, how much you pay in real terms, controlling your household bills, what you eat and much more.

Go to the start of this article about UK citizens rising debt problems.

Get out of debt * stay out of debt * save money every day expenses * earn an additional income

During this article about debt we have covered

How a television can cost you 75% less when you pay cash

How peer pressure can get you into debt

How to reduce your household bills

Managing debt by managing your diet

A household is like any business. It has an income and overheads and the person responsible for managing the day to day budgets has to ensure that the monthly outgoings are less than the monthly income. On the face of it, this would appear simple enough, yet 40% of all UK households have debt management problems.

For many families, the debt problems are compounded by having just one income. The cost of childcare often makes it financially unviable for the spouse to get a job. Couple this with the need to get a second car, if work is not available locally, petrol costs, parking and lunches and you could end up paying for the right to go to work.

As a result, many spouses are now choosing to work from home, fitting their work in around the children's needs and those of their spouse. This negates the need for a second car, travelling expenses, childcare and provides total flexibility by way of a working environment.

One home business opportunity is simply helping people save money on their utility bills. Additional income can be earned and brought into the household by helping other friends and family to reduce their gas, electricity and telephone bills.

For the more ambitious, perhaps a group of spouses who have a business idea for the internet but lack the finances and business experience, there is a company that invests in new start up internet companies. So if you or a few friends have a business idea for the internet and need to generate more money from home, now is your opportunity.

If you have financial or debt problems, it may be sensible to get your finances sorted out before starting any new business as opposed to just looking for an extra income source.

If we can help you help you earn some extra cash and change your attitude to spending money and the way you approach your lifestyle, then maybe we can show you how to get out of debt, or reduce your monthly outgoings, reduce your household bills or even earn additional income from home and, most importantly, stay out of debt and start to acquire some wealth.

Managing your debt is exactly the same as managing your finances. You need to look at ways to reduce the monthly payments and additional ways to save money and generate additional income to reduce debts as quickly as possible.

By cutting costs and generating more money you can accelerate the process to eliminate your debts and as each debt comes to an end, you will find yourself with more money in your pocket.

At this point you should then start to save money so that you are ready to pay cash for any major purchase. However, before you get to this point you need to do 5 things

1. You have to change your mindset and attitude to borrowing money. Is the purchase an absolute essential or simply a whim? Do you have to have it now? Can it wait until you have got your finances sorted?
   
   

2. Take a close look at your current borrowings. Would a debt consolidation mortgage at a cheaper rate be a sensible option? Roll up all your debts for one last time, to reduce your outgoings and start to accumulate capital for your next major purchase. Make sure that there are no early get out penalty clauses, should you want to pay off the mortgage early.
   
   

3. If you really are struggling to meet your debts and have debts in excess of £15,000 then you should investigate the benefits of an IVA.
   
   

4. You should also look at ways to reduce your household bills. This doesn't just mean switching to a cheaper utility supplier. This involves changing the way you shop and what you buy.
   
   

5. Having cut your overheads and monthly outgoings, would additional money earned at home come in useful? You could then take this additional money and pay it into a savings account and start to accumulate money for your next major purchase or paying your mortgage off early.

Obviously, we are not suggesting that you save up and pay cash for a new car or house. There are some things where it is necessary to borrow money. However, if you have been able to save money and have got yourself on a good financial footing, you can call the shots as to where you borrow money from and to a degree how much interest you pay. In the long term, we would hope to help you accumulate substantial deposits, but in the meantime lets just focus on how you can get out of debt.