Albanian Journalism

Tips For Climbing Out Of The Downward Spiral Of Debt For Good

According to recent statistics by Aviva, the average household debt in the UK is more than £10,000. This includes loans, credit cards, hire purchases and overdrafts. Families find themselves struggling to pay off these debts, as their cost of living continues to be high and interest rates add up more and more.

Getting yourself trapped in a cycle of debt can be very easy to do. One day you are absolutely fine; maybe living pay cheque to pay cheque or perhaps with a small amount of savings. Then something unexpected happens. Perhaps your car breaks down and you need to pay for repairs, or you lose your job for a while and are unemployed for a few weeks or months while you find another one. Whatever happens, you find yourself needing to borrow a little bit of money to keep yourself afloat and perhaps start charging a few items to your credit card.

Sinking in Quicksand: Fast!
Once the cycle begins, you will find yourself falling deeper and deeper into the trap. If you cannot pay your loans and credit card bills back fast enough, you will have to pay interest which will reduce your income even further. Eventually you will find that a large chunk of your wage has disappeared to interest payments before you can even get started on paying for your weekly expenses and paying back the principal of the loan.

Once you have gotten into the cycle of debt, it can be much more difficult to climb back out of it. The best thing to do is to save up an emergency fund which can cover you in an emergency so that you can avoid going into debt in the first place. However, if this is not possible then you will need to find a way to get yourself out of debt. It will be difficult for a while, but once you get yourself back out of the red then you will be able to take charge of your finances for good.

Here are some tips to keep in mind that will help you on your path to get out of debt:

Follow these tips and make paying off your debt a priority and soon you will be out of the debt cycle and onto a better financial situation. Afterwards, continue to spend less than you earn and you should never need to get trapped in debt again.

Bob Emerald is a freelance writer who paid off her debt of nearly £10,000 in 14 months with smart budgeting and financial planning. He writes for, a service that helps over 1,000 people every month with their debt management.

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