Guide for Young Parents To Get Rid Of Debts, For Good
Do your debts stress you out? You are not alone, more and more young parents find themselves in this situation. Actually, people aged 18 to 35 are quite vulnerable because of the consumer debt crisis UK citizens are experiencing. Surveys show that around 50% of 18 to 24 years old, and 60% of 25 to 35 years old are in debt, the average debt being of more than £8000.
It’s known that any type of debt can cause great physical and mental problems, but for young parents like you the situation is more than stressful.
Why are you in debt?
Three main factors cause your financial struggles.
- First, the living costs are higher than ever and sometimes you feel that you have to make impossible decisions because you cannot afford to pay all the monthly bills you are receiving since your baby was born. You have to decide what essentials you have to cut back, and if unexpected expenses come along the only solution is to borrow money to pay them.
- Second, you probably spend more than a third of your income on housing. The society is facing a lack of low-cost housing and because you have a baby now you have to rent or buy a private housing to offer him or her a comfortable home. This situation seems with little prospect of escape because your paycheck is not enough to cover the housing costs and you find yourself in debt because of it.
- Third, a lot of the times one of the two partners have a low-paid or insecure job, so this may be the situation for you. The good news is that employment is at a record high, so if you look for another job you’ll probably find a better-paid one. A baby brings unexpected costs and you may be at in-work poverty risk because of your low-paid job.
It’s understandable that since you welcomed the baby you might rely on credit companies and creditors to cover your daily expenses. But you need to create a plan to get rid of debts, especially if you are at the risk of a bailiff to recover the debts on behalf of your creditors.
Also Read: How to Find Best Financial Advisor in Boise?
Here are some guidelines to help you.
Sell old stuff
If you find ways to earn extra money, you can cover some of your debts. You have countless items around the house you no longer use, so you can have a garage sale or you can sell them online. You should check your entire house, from the basement to the attic; you’ll definitely find numerous things to sell. If you’re not planning to have another baby, you can sell some of the clothing items that don’t fit them. The little one probably wore them once or twice because babies grow fast. Other new parents will be happy to buy the items at a lower price than in the store.
If you are at the risk a bailiff to visit your house then you should sell the items they can seize. You can get a better price for the items than they would evaluate them, and you can use the sum to cover some of your debts. They will take non-essential items like your TV, game console, jewellery items, non-essential furniture, and even your car. You probably no longer use your game console, so you should sell it and prevent the bailiff from visiting your house.
If you have plenty of clothing items or accessories you no longer use you can sell them. The bailiff cannot seize them but you can transform them into cash.
Boost your income
After selling the things you don’t use, you can put your skills to work and grow your income. If finding a new job is not an option for you, here are some suggestions on how to boost your income.
- Take part in a focus group. You will get paid to share your opinions and thoughts, you can register online and get the surveys via email.
- Use your car for advertising. You can collaborate with an advertising company and cover your car with ads to promote one of their clients.
- Become a freelancer. If you’re skilled at writing you can make money from home by writing pieces of content and editing them.
- Pet sitting. If you want a part-time job, you can sit with other people’s pets and you make even £800 every month.
Learn how to deal with a bailiff
If your creditors decided to recover their money with the help of a bailiff then you have to learn how to handle the situation. You should try to avoid one visiting you because all the associated fees will be added to your current debts. It’s advisable not to allow them to your property if they visit you. If they show up to your house, speak them through the door, and contact your creditor to make a payment plan. You should always keep your doors locked to avoid enter by peaceable means.
When they show up at your house, you should try to identify who they are, what creditor sent them, and to ask their contact details. If they are not willing to prove their identity, you should ask them to leave and if they refuse, you should contact the police to support you. If you want to find more about the subject, you should read this article, it offers useful information on how to deal with a bailiff.
Find out what your greatest expenses are
The best way to pay your debts is to find out where all your money is going. Create a list with all expenses, and include the interest rates for your credit cards. You should start paying the credits with the highest interest rates. This strategy implies two steps, finding out what your exact income is, and how much you are spending on a monthly basis. You can create a budget, and cut some of the non-essential expenses.
Guest Article. Contains sponsored links.