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4 Ways to Repay Debt


Some debts are more serious than others. Debts secured against your home should always be considered a priority over and above debts on things like credit cards or store cards, because the consequences of not repaying those debts are generally worse.

That doesn’t mean you should ignore unsecured debts. Indeed, unsecured debts that have mounted up can have a serious impact on your finances and make paying for day-to-day items very difficult.

Many people are able to deal with debts by taking simple steps like budgeting more carefully. Some debts are more serious and need more serious action.

This article looks at four ways to repay debt, from budgeting to entering a debt management plan. You’ll find all the listed ways of managing your debts on this website.

Increase your income

Any of the following things could increase your income: find employment, find higher-paying employment, try for a promotion at work, take on overtime, take on a second job, take in a lodger, and make sure you’re receiving all the benefits you may be entitled to. Increasing your income can make it much easier to repay your debts.


First of all, consider the cost of all the essential things in your life. Different people find different things essential depending on their personal circumstances, but generally you should consider the cost of your mortgage / rent, childcare costs, utilities, rates and food as essential.

All your other expenses need to fit within what’s left of your monthly budget – without taking up money you need to repay your debts. Again, the more you can cut back on your spending, the more money you’ll have to put towards your debts.

Debt consolidation

If you have multiple debts, you could consider taking out one loan big enough to repay all of them.

That would leave you with one lender to deal with and one repayment to make every month. Debt consolidation also has the potential benefit of reducing your monthly payments. One drawback is you might pay more in interest in the long term.

Debt management

For debts that are out of hand, perhaps leaving you short of money for essential costs, or forcing you to borrow more, you could consider a debt management plan.

Debt management is a way to make your monthly payments more affordable. It may be possible to make a new arrangement with your unsecured lenders and spread your repayments over a longer period. That can cost you more in interest overall, although some lenders will be prepared to freeze interest and charges.

Debt management is only an option if your creditors agree to let you change your repayment plan – and note that entering into debt management would affect your ability to obtain credit because it would remain on your credit file for six years.

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My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

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