‘Good planning’ vital for getting debt free, expert states

An expert has advised those keen to ensure they are not overwhelmed by stress and mired in ever-deepening debt to use some good planning.

Stress do…

An expert has advised those keen to ensure they are not overwhelmed by stress and mired in ever-deepening debt to use some good planning.

Stress doctor Terri Bodell stated the best thing people can do is to draw up a list of all their outgoings and then work out what they spend but do not need, with this being eliminated.

She also advocated collecting phone numbers of utility providers to facilitate early action where arrears exist, saying: “Ring up those companies that deal with mortgages, gas and electricity, so that you can come to a deal with them to pay less each month.”

Dr Bodell said companies of this kind “prefer” it when a troubled customer has their “head in the sand like an ostrich”.

“Then what happens is that you get into deeper debt and your stress levels rise even further,” she concluded.

Such advice may be useful for those in danger of falling into arrears with their utility bills, but may equally apply when it comes to other regular payments, such as credit cards.

In severe circumstances, borrowers may look to individual voluntary arrangements to bring down the payments, but sometimes making early contact with lenders can bring good results.

Good financial planning has also been advocated by editor of Savvy Woman Sarah Pennells, who recently stated that young people with debts should make it their first priority to pay these off, before they begin planning for a pension.

She explained that otherwise any interest gained on savings is going to be counteracted by the growing levels of debt that might otherwise have been paid off.

By James Francis

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