How to clear your debts

Action Plan:

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Action Plan Overview

Whether you owe a lot or a little it is possible to clear your debts; all you need is willpower, determination & a plan. We explain exactly what you need to do to pay off your debts asap.

		a	Do: Commit yourself to clearing your debts
		b	Do: Get support

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		a	Find out: How much do you get paid?
		b	Find out: How much do you earn from other jobs?
		c	Find out: How much do you earn from overtime?
		d	Find out: How much do you earn in bonuses?
		e	Find out: How much do you earn in interest or dividends from savings and investments?
		f	Find out: How much do you receive in tax credits or benefits?
		g	Find out: What's your average monthly income?

		a	Do: Get all of your paperwork together
		b	Work out: How much do you spend on compulsory expenses?
		c	Work out: How much do you spend on essentials?
		d	Work out: How much do you spend on luxuries?
		e	Work out: How much do you spend each month?

		a	Work out: How much do you owe in total?
		b	Work out: Can you afford to keep up repayments on all your debts?
		c	Decide: Do you need to cut back?
		d	Do: Contact lenders if you're struggling with repayments

		a	Find out: How much do you have in savings accounts?
		b	Find out: Are you paying more interest on your debt than you're earning on your savings?
		c	Decide: Should you use your savings to clear debt?
		d	Work out: How much of your savings should you put towards your debts?

		a	Do: Check your credit report
		b	Do: Speak to your lenders
		c	Decide: Should you arrange a low rate credit card balance transfer?
		d	Find out: Can you cut your interest repayments using a credit card you already have?
		e	Decide: Should you consolidate your debts?
		f	Consider: Could you pay a lower interest rate by using a low rate personal loan?
		g	Work out: How much have you saved in interest payments?

		a	Work out: How much can you afford to pay off your debts each month?
		b	Do: Split your repayments between your debts
		c	Work out: How long will it be until you're debt free?
		d	Decide: What's the best way for you to make repayments?

		a	Consider: Should you get a debt relief order?
		b	Consider: Should you get a debt management plan?
		c	Consider: Should you get an IVA?
		d	Consider: Should you consider personal bankruptcy?

		a	Do: Keep a spending diary
		b	Do: Start working to a careful budget
		c	Consider: Can you spend less without noticing a difference?
		d	Consider: How can you earn extra money?
		e	Do: Keep track of your progress