The three best online resources for anyone looking to get out of debt

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Published on Thursday, 09 July 2020 09:56

Last Updated on 09 July 2020

Monica Costa

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Getting into debt is easy to do these days. You can be forgiven for thinking that debt is encouraged in our society because it actually is. Credit cards, consolidation and payday loans, overdrafts, mortgages, and smartphone contracts; these are all debts that we take on from time to time just to get by.

With interest, debt can soon start to pile up. Looming debt is a common cause of stress for many people, but don’t panic. There are plenty of tips, tricks, services, and resources out there that can help literally anyone take control of their debt, save money, and eventually get debt out of their lives if that is what they want. Here are our top three online resources for anyone looking to get out of debt.

Time to Balance the Books and Get a Credit Check

The hardest part about tackling debt is sitting down and working it all out. This can often put people off right from the start, but don’t let listing all your debts intimidate you. Start with this simple step, and everything will get easier from here.

If you have been using financial products like credit cards, store cards, and personal loans for a while, you may have lost track of all your outgoings. Your bank statement is a good place to start looking, but you should always perform a credit check that will list all your debts as a creditor would see them. If you have forgotten something, it should show up here. You can do it for free here, and you will get a detailed list of all the credit agreements held in your name or attached to your property. It will also let you know your credit score, which may help you later if you want to shift or consolidate some of your debts.

Build Your Credit Score to Help You Get a Better Deal

If you want to take control of your debts and work towards a debt-free future, then you are going to have to build your credit score to get yourself the best deals possible on new loans or cards with preferable interest rates.

The credit or debt industry works by assessing financial risk. If you have a bad credit score and are deemed a higher risk, then you will only be offered small amounts of credit at high-interest rates. It is not impossible to work your way out of debt with these types of cards or loans, but they will cost you a lot more money over a longer period of time.

With a better credit rating, you are seen as less of a credit risk and you will be offered better rates and terms on credit cards and loans that you can use to shift your debt, and pay it off quicker and with less interest. You may also find loans for bad credit scores available to help people pay off debt, with the help of a credit broker like New Horizons. Find out more about the services brokers like New Horizons offer and learn more about a fixing a bad credit score here.

Make Your Own Revenue Stream From Home

A popular way to get out of debt is to turn your old clothes, computer games, movies, and even furniture into a new revenue stream.

Sites like Depop, eBay, and Gumtree give you an opportunity to turn your old trash into treasure and use the proceeds to make extra debt payments, thus slashing your debt and boosting your credit score. Nearly every home in the country has boxes and bags in cupboards or an attic filled with old clothes and trinkets. Reclaim some space in the home and pay your debt down. Unwanted kids’ toys can be a goldmine waiting for you to harvest.

With the right techniques, as shown here, selling on sites like these can even turn into a small business you can run from home. If you start to run out of things to sell online, you can invest some of your profits into purchases from car boot sales, or summer fayres and fetes, or even friends and family. Clothes are a particularly profitable option, with many vintage items hitting high prices on Depop, for instance.

Making sales online is a great way to generate some quick money that you can use to pay your debt down on top of your regular payments. Making payments like these to credit and store cards can have an immediate impact on your credit score, helping you switch to a better deal. If you keep it going, you can pay off your debt quickly and even start spending a little!

Don’t let debt get you down, and don’t be afraid of taking your credit rating by the scruff of the neck and sorting out your debt payments. With a little bit of hard work and self-discipline and some clever debt shifting, you can reduce your payments quickly. Use the online resources linked above, and you can be debt-free sooner than you might think.