However, if you have debts then you might be wondering whether you should concentrate most of your spare funds on paying off your debts to become Debt Free as, due to the level of interest of both of these products, it could save you a lot of money in the long run.

In general, if you are having problems with your debts, or if you are left with a low disposable income once all your outgoings have been paid, then it could be a good idea to focus on paying off your debts so you can become debt free.

Becoming debt free by paying off your debts could save you money in the long term, because the interest on unsecured debt usually grows at a much faster rate than your savings. Typically the average interest rate on credit card debt is at 17.74%, according to Credit Action statistics for June 2009. Whereas research by the Conservative Party discovered that the average interest rate paid on £10,000 worth of savings is an average of 1.53%.

However, dependant on the debt type, if you decide to overpay or settle the entire debt early using your savings, make sure you ask your lenders about any early repayment charges. This does not apply to all debt, but is worth asking so you won’t have to worry about additional charges when trying to become debt free.

Savings can also provide you with a good ‘safety net’ if you need some money due to an unexpected cost, such as car repairs or household maintenance. Therefore if you feel that you are in control of your debts it can be advisable to save.

But the best financial decision must be made by you. You should have a good grip on your finances so you know how much cash you have to spare each month. It depends of you want to have some savings to fall back on or you would rather become debt free as soon as possible.

I Can’t Afford to Save or Pay Off my Debts.

If you cannot afford to save or pay off debts it is essential that you seek professional debt advice as soon as possible. There are debt solutions which allow you to pay off debts with a reduced monthly payment so that you can afford your debts (as all repayments to debt are calculated after outgoings have been accounted for).

If you do not make at least the minimum payment on time, then you will be facing additional charges and penalties being added to your debt, meaning that you will be seeing your debt level rise higher and higher.

There are ways that you can reduce debt payments, and Debt Free can help you reduce your debt payments in a number of ways. Once you realise that you are struggling with your debt, it is important that you seek professional advice as soon as possible.

There are a number of debt solutions on the market, but you need to know which of these can reduce debt payments and offer you the best way to deal with your debt, as each debt free solution is different.

Those with debt levels over £12,000 may find that the best way they can reduce debt payments is with an IVA. Not everyone is eligible, so please contact Debt Free to see if you are. With an IVA you will be debt free in 60 months and all unpaid debt is written off on completion of the IVA.

An IVA will reduce debt payments to a level which you can afford. The amount that you pay is dependant on your unique financial circumstances.

Debt Free can help you to reduce debt payments. We will help you go through your finances and help you to decide which debt solution is right for your personal financial situation, whether you are looking for an IVA, Debt Management Plan or Trust Deed

You might be calling about how to deal with high levels of debt. If you have over £12,000 worth of debt then you may be suitable for an IVA. An IVA allows you to make reduced payments to your creditors, and most of our Debt Free IVA clients can expect to be debt free in 60 months. An IVA is only suitable for residents of England, Wales and Northern Ireland.

This may be a problem for some localised financial solutions companies, but as we offer national debt advice, we can also help Scottish residents. A Debt Free Trust Deed is an IVA alternative which are only available in Scotland. It works in a similar way to an IVA, but you can typically be Debt Free in 36 months.

Through our online website we can offer you debt advice, such as Debt Free Tips which can provide you with tips on better ways to manage your debt, so you can be on the road to becoming debt free.

FREE National Debt Advice.

Debt Free provides a free and ethical national debt advice service. Our advisors are on hand to answer any questions that you may have about your UK debt, and the best way to manage your finances.

1: Knowing Your Debts – The first step on the road to going debt free is facing how much debt you actually have. It can be easy to sweep debts under the carpet so you don’t truly know your level of debt.

Work out exactly who your creditors are and how much you owe then and also understand what the interest rates are on each of the debts. Now you can work out how long it will take you to complete your goal of going debt free is, if you paid off a certain amount each month.

2: Having a Debt Free Goal – Once you understand your debts it is important that you set yourself achievable goals, so you can feel more in control as you watch your debt levels decrease.

The right goal for you is dependant on your level of debt. For example, you might want to be debt free in 60 months through an IVA or you might aim to pay more than the minimum amount off your credit card debt.

Whatever your debt free goal is, make sure that going debt free is achievable and you stick to it.

3: Control your outgoings – Aiming towards a debt free lifestyle does not mean that you have to cut out all of life’s luxuries. But you should also remember that the daily treats soon add up; think about the £6 a day you spend on lunch when you could make the same for £1. This simple change could save you £115 a month (based on 23 working days). Using this extra cash to pay off your credit card debt or loans could mean that you are debt free much quicker than you think.

4: Are you entitled to more? – According to recent figures, millions of pounds worth of Government benefits money go unclaimed each year. It is worth finding out if you are entitled to additional benefits.

Even as an employee you should be aware of company benefits, as you could be entitled to a cheaper or free eye test.

5: Plan ahead – Generally saving money whilst you are in debt is not a good idea, as the amount of interest you earn on your savings will not cover the amount of interest being added to your debt.

However, if you plan ahead then you could save yourself money. For example, keeping money aside for Christmas means that you won’t have to get yourself into more debt because you cannot afford presents, and booking train tickets in advance could also save you money.

6: Don’t be afraid of Debt Advice – There is debt advice out there which is designed as a way to help you to become Debt Free. No matter what your level of debt, chances are there is a debt solution out there which could help you by reducing your minimum creditor payments.Seeking debt advice is in important step in going debt free.

Becoming debt free does not have to be an uphill struggle as there are financial companies which can help you in getting debt help and can advise on a range of debt free solutions. Although the initial debt help may be free, you should be aware that you are likely to have to pay a fee for the debt solution.

There are a number of ways that getting debt help can really benefit you in the long term as there are a number of debt solutions which enable you to be debt free.  Each Debt Management method is different and the right one for you is dependant on a number of factors.

Debt management plans, debt consolidation loans, IVA, bankruptcy, debt management programmes, trust deeds, secured loans and unsecured loans are just some of the different solutions which could be available to those who are struggling to make hefty monthly payments towards their unsecured debt.

It can sometimes be tricky deciding which of these debt free solutions is the most ideal for your situation. Getting debt help can really help you to go through your options with a professional debt advisor who should be able to ethically and responsibly advise you as to which could be the best way of repaying your debt.

Finance Talks Limited also offers advice on a range of services.

Understanding the simplest ways to become debt free is getting more of a difficult task, as there seems to be so many solutions out there. But the simplest way to get debt free is to get back to basics, we all know that using a credit card for everyday purchases is a sure fire way to get into debt, but it still happens.

You could be debt free in just 4 simple ways with these debt free tips below, without any of the technical jargon:

1: Budget. One simple word could be the key to becoming debt free. This is your foundation plan to becoming debt free. Setting yourself a strict but realistic budget is one of the simplest ways you can get in control of your finances.

2: Spend less than you earn. This needs to be the key elements to your budget. Although this concept may sound simple, it might be much harder than you think, especially if you have been used to topping up your income with the help of credit card spending.

3: Have discipline. Discipline is essential for your budget to work. Try to resist the temptation to buy what you want when you want it and learn to buy only what you need and make do with what you have. Being strict but fair with yourself when it comes to spending money is one of the simple ways to become debt free.

4: Get help. There is no shame in getting help for your debts, many people worry that getting debt help means that you will have to declare bankruptcy but this could not be further from the truth.

Getting debt help as soon as you need it, instead of putting it off, increases your chances of avoiding bankruptcy as you are tackling your debt problems. Debt Free are here to help and our team of advisors will be able to help you decide on the best way for you to become debt free.

The BBC have published an article posing the question Can You Get a Debt Free Degree? They believe that it can be a reality….

They spoke to a second year undergraduate who believes that the media exaggerate the amount of debt that a student needs to get into whilst studying for a degree and that is possible to have a debt free degree. He says: “If these students put more thinking into their careers and plans, they can easily end up with no debt.”

He believes there are simple ways for students to have a debt free degree by making simple changes to their lifestyle and making their money go further. His tips include cycling to university to save on transport costs and take a part-time job.

Many Universities provide guidelines for students who work part time, typically saying that they should work no more than 16 hours a week so it does not interfere with their degree studies.

It is worth noting that to achieve a debt free degree you do not have to go to university at all, as many colleges offer further and higher education at a lower course fee. You may even wish to do your university degree through the Armed Forces, as army undergraduate bursaries pay out £1,000 a year and then a further £3,000 on leaving Sandhurst. Students are then committed to three years service.

Another way to get a debt free degree is to check out what financial support is available for you. The Educational Grants Advisory Service (EGAS) offers online information about student grants which are offered by many different charitable trusts. In order to get a debt free degree, students may wish to find out if they are eligible for funds from select charities.

Family Action awards grants of around £200 – £300 a year to students who would otherwise have difficulty financing their degree. It also offers additional help to single parents who wish to get a debt free degree through their Horizons fund.

If you already have debts before you go to University then it is essential that you get DebtFree advice. If you are working part time and are struggling to pay your bills, you may be looking for ways to make these cheaper. Debt Free can help you with a range of debt solutions including Debt Management plans. These are informal agreements between you are your unsecured creditors which allow you to make a single monthly payment to your debt.

The ability to become debt free is dependant on how you view ‘what is debt free?’ as this could alter your debt free definition. If you wish to become free on unsecured debt then becoming debt free is a possibility. But if you believe that being debt free means that you have no debt, including any mortgages, then it will probably take you a while longer to become truly debt free.

Becoming Debt Free

If you are looking to control your debt and be on the road to becoming debt free, then there are a number of ways in which to do so. To begin your journey to a debt free future, it makes sense to look at your budgeting methods and begin to distinguish your needs from your wants.

Budgeting really is one of the simplest ways to take control of your debt. Establishing a perfect budget could help you discover some surplus cash which you can use to speed up your repayment of debts.

Next comes prioritising your debt. Leaning how to effectively prioritise your debt can be a good start to becoming debt free. Ensure that you understand the difference between priority and non-priority debt, and, if in doubt, ensure that you seek professional debt help.

Getting Debt Free Help

If you do have problem with your debt and envy the debt free lifestyle, you may wish to seek the advice of a professional debt solutions company. Speaking to the right financial company can help you deal with your debts and get you on your way to becoming debt free.

No matter what type of debt problems you are suffering from be it credit card debt, store card debt or just want general advice about how to control your finances, our debt advisors can go through your circumstances and find a debt solution which is right for you.

Debt Management Advisor

You might have gone through the potential debt solutions and be looking for a Debt Management Plan. We have Debt Management advisors who will go through your finances and arrange a debt management plan to suit your personal debt levels.

Our debt management advisors have a range of specliast skills, and they may be able to help you to:

• Find the best way to pay off your debt
• Consolidate your debt into a lower monthly payment
• Negotiate with creditors on your behalf
• Discuss what debt solution is right for you
• Offer you alternatives to bankruptcy

Free UK Debt Advisor Advice

We offer a complete financial solutions service, no matter what your debt level or your credit history, we are confident that we can find a solution which is right for you. We’ll access your situation to offer a personalised solution, such as an IVA, debt management plan, debt consolidation, secured lending or bankruptcy.

Our professional debt advisors are on hand to offer you further advice.

If you are struggling then you should find ways of dealing with debts as soon as possible. Even if you are getting demanding phone calls and letters from multiple creditors (those who you owe money to), it is not too late to get debt help.

It is possible to deal with your debts through a range of debt solutions, all of which are offered by Debt Free. Debt solutions include:

A DebtFree Debt Management Plan

Our Debt Management Plans are designed to offer you a lower month payment to your creditors. Our plans are tailor-made to suit your financial circumstances so you can make a payment that you can afford.

A Debt Management Plan is a flexible agreement which means it can change with your personal circumstances. This type of agreement is best suited to those who have lower levels of debt, typically under £12,000. Those with higher debt levels may be more suitable for an IVA.

A Debt Free IVA

IVAs (Individual Voluntary Arrangements) were introduced as a form of government help for those who are dealing with high levels of debt and are looking for an alternative to bankruptcy.

An IVA is a legally binding contract between the debtor and their unsecured creditors. The IVA typically lasts for 60 months where the debtor agrees to make a set monthly payment over this time.

Once the IVA has been completed, any remaining debt will be written off. Not everyone is eligible for an IVA, so it is important to seek professional advice. Debt Free can find out if you are suitable for an IVA, so please get in touch with our debt free team today