Debt Help: Straightforward Advice for Everyday Money Worries

Got debt and not sure where to start? You’re not alone. From a £5,000 personal loan to a student loan that feels endless, the right moves can shrink the stress fast. Below are easy steps you can take today, based on real‑world numbers and what lenders actually look for.

Know Exactly What Your Loan Costs

First thing – calculate the monthly payment. Use a simple loan calculator or plug the numbers into a spreadsheet. For a £5,000 loan at 7% over three years, you’re looking at about £155 a month. If the payment feels tight, ask the lender about a longer term or a lower rate. Even a half‑point drop can shave £20 off each payment.

When you’re eyeing a bigger loan, like a £60,000 home‑equity loan, the same rule applies. Break down the interest, the term, and any fees. Knowing the exact figure helps you compare offers without guessing.

Boost Your Credit Score Before Applying

Credit scores matter a lot for loan approval, especially if you’re thinking about a £10,000 personal loan or a remortgage. Lenders check your score, debt‑to‑income ratio, and repayment history. If your score sits around 450, don’t give up – some specialist lenders still say yes, but you’ll pay more.

Quick wins: pay down any credit‑card balances, avoid new credit checks for a month, and correct any errors on your credit report. Even a 20‑point bump can improve your chances.

Consolidation can be a lifeline when you have several small debts. A single consolidation loan can lower your overall interest rate and make one payment easier to manage. Just make sure the new loan’s rate is lower than the average of your existing debts, otherwise you’ll end up paying more.

If you’re worried about how a consolidation loan affects your credit, the impact is usually short‑term. The key is to keep the new loan current and avoid opening new credit lines while you pay it off.

For student loans, recent changes in repayment dates mean you might have extra time before payments start. Check the latest guidance for 2024‑2025 adjustments – it could save you from an unexpected jump in monthly costs.

When it comes to mortgages, your credit score still matters. A higher score can shave a few percentage points off a 30‑year mortgage rate, which adds up to thousands over the life of the loan. Before you remortgage, pull your credit report, fix any issues, then shop around.

Finally, keep an eye on hidden fees. Some loans charge arrangement fees, early repayment penalties, or insurance that you might not need. Ask the lender to break down every charge before you sign.

Debt doesn’t have to control your life. By knowing your exact costs, polishing your credit score, and choosing the right consolidation route, you can take charge and start paying down the balance faster. Got a specific loan in mind? Use the tips above and run the numbers – the right move is often just a spreadsheet away.