Debt problem advice * get out of debt * stay out of debt * advice on debt problems * reduce household bills * earn extra money from home

Providing advice on debt problems is one thing; taking the advice and following it through is another as many people who have debt problems, continue to make the same mistakes having sorted their debt problems out.

Go to the start of this article about UK citizens rising debt problems.

Get out of debt * stay out of debt * save money * earn more money

Because UK house prices have risen so significantly in recent years, homeowners have found it easier to borrow money by re-mortgaging and releasing the equity in their properties to consolidate their mounting debts.

House owners have therefore been able to live far beyond their means, knowing that their property was making them money. I would liken this to selling your house to pay the rates. You are actually parting with money and giving it someone else.

Furthermore, the money you have already spent is now costing you interest and you are paying for the right to have acted irresponsibly and paying more for it.


There is nothing wrong with consolidating your debts by re-mortgaging if you intend to change your spending patterns and attitudes to spending. If you don't change, a few years from now and you will be doing the same thing.

Twenty years from now and you could be living in a house worth a million pounds with a 950,000 mortgage. You will be worth 50,000 top whack which will probably equate to six months income. Not much to show for a lifetime of toil.

As Mr. Micawber in Charles Dickens' novel David Copperfield so succinctly put it "Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and sixpence, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and sixpence, result misery."

If I can help you change your attitude to spending money and the way you approach your lifestyle, then maybe I can show you how to get out of debt, or reduce your monthly outgoings, reduce your household bills even earn additional income from home and, most importantly, stay out of debt and start to acquire some wealth.

It isn't just the big purchases that help people run up debts, it is also the everyday purchases where people tend to fritter away money whilst complaining about their financial problems.

The couple I mentioned earlier with the Mercedes and 4X4, recently remortgaged to cut their monthly outgoings. You don't do that unless you are having financial difficulties. But here is a case in point.

The wife is at home all day, whilst their daughter is at school and has the central heating running full blast to the point that my wife finds it suffocating. His wife complains of feeling the cold, is morbidly obese, not that I am an expert, but God she is fat and will remain that way all the time she does nothing and sits on her fat arse.

The daughter is getting on that way too and is constantly off sick with colds and everything else that is going around the school. Mum drives her to school and picks her up again and central heating is the perfect place for germs to breed, especially if you have the heat turned up.

We have shown her how to cut the cost of her utility bills and at the rate she burns gas, it will save her a small fortune, but her unhealthy lifestyle is the main cause of her feeling cold. We live half a mile away and she drives rather than walks, when she visits our house.

This is all about mindset. She complains about being overweight, she moans about her husband having to work away to earn the money to support their lifestyle, admits to money problems but when showed a simple way to make some extra cash without having to get off her fat arse, she does nothing about it.

Here we have a family with a hundred grand income, two expensive cars and a house with every conceivable top of the range gadget and a 90% mortgage after 12 years of marriage. What my old Dad would have called "All kippers and curtains." A high income and not much to show for it.

Yes they have the big house and the big cars but they are mortgaged up to the hilt. Sell them and pay off the mortgage and finance and they would struggle to come up with the deposit for a two bedroom flat.

My 23 year old daughter on the other hand, on a much lower income, owns her own house and is worth more on paper already. You see, the property boom has enabled people, even those on a low income to acquire a little wealth and by being responsible and sensible about their spending habits, can turn that wealth into something even more substantial.

To do this, you need to do five things.

  1. You have to change your mindset and attitude to borrowing money. Is the purchase an absolute essential or simply a whim? Do you have to have it now? Can it wait until you have got your finances sorted?

  2. Take a close look at your current borrowings. Would a debt consolidation mortgage at a cheaper rate be a sensible option? Roll up all your debts for one last time, to reduce your outgoings and start to accumulate capital for your next major purchase. Make sure that there are no early get out penalty clauses, should you want to pay off the mortgage early.

  3. If you really are struggling to meet your debts and have debts in excess of 15,000 then you should investigate the benefits of an IVA.

  4. You should also look at ways to reduce your household bills. This doesn't just mean switching to a cheaper utility supplier. This involves changing the way you shop and what you buy.

  5. Having cut your overheads and monthly outgoings, would additional money earned at home come in useful? You could then take this additional money and pay it into a savings account and start to accumulate money for your next major purchase or paying your mortgage off early.

If you seriously want to get out of debt you have to do something positive to get yourself on an even footing. Earning some additional money from home will undoubtedly bring in some much needed additional income. Remortgaging to lower your monthly outgoings doesn't get rid of the debt, it just makes it more manageable. What you have to do is learn to manage your debt.


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