Debt Awareness Week: Manage your money with confidence 

National Debt Awareness Week is an excellent opportunity to discover the best ways to manage your money wisely. During this week, you can learn more about everything money and, pave the way to a more secure financial future. One of the top tips for managing money is to create a budget that aligns with your income and expenses. 

By outlining your financial goals and tracking your spending, you can gain a clearer understanding of where your money is going and make informed decisions about saving and investing. Through this guide, we’ll teach you how to empower yourself with money knowledge, make informed financial decisions, and manage your debt effectively.

Why is there a Debt Awareness Week?

National Debt Awareness Week is an annual campaign that is dedicated to helping people address their problems with debt.

The week aims to address common barriers that prevent people from seeking help, such as mental health conditions, feelings of shame, lack of understanding about debt advice, time constraints, and concerns about credit scores.

By shedding light on these issues, Debt Awareness Week encourages individuals to overcome these barriers and seek the necessary support. Additionally, the week serves as an opportunity to highlight the causes of problem debt and provide practical help and tips to manage financial challenges effectively.

Understand the impact of debt on your credit score

Understanding the impact of debt on your credit score is crucial for maintaining healthy financial habits. This score reflects different aspects of how you handle your finances, such as how you pay your bills, how much credit you use, how often you apply for credit, and how long you’ve had credit accounts. A healthy credit score can be maintained through timely payments and responsible credit management, signalling to lenders your reliability in handling debt. Conversely, missed payments and high levels of debt can negatively impact your credit score, leading to higher interest rates on loans or credit rejections.

Does a debt management plan affect your credit?

A Debt Management Plan can impact your credit, but the effects are not entirely negative. When you participate in a DMP, you work with a credit counselling agency to manage your debts more effectively. This involves creating a budget, negotiating with creditors for better terms, and making a single monthly payment to the agency, which then distributes the funds to your creditors. While being in a DMP may show up on your credit report and could make it harder to get new credit in the short term, it also demonstrates that you are actively addressing your debts.

Consistently making payments through a DMP can help improve your credit score over time by showing responsible financial behaviour. Although there may be temporary limitations on obtaining new credit and potential account closures, the overall impact of a DMP on your credit is not necessarily detrimental. It’s important to weigh the benefits of managing your debt effectively against the temporary challenges of reduced access to new credit opportunities.

In simple terms, while a Debt Management Plan can influence your credit, it offers a structured way to repay debt and can help you regain financial stability as you work towards a better financial future. 

How We Can Help: Short-Term Loans 

When used wisely, short-term loans can offer relief when money is tight.

Short-term loans are like quick cash boosts that can help when you’re low on money. They are handy for both businesses and individuals who need a financial pick-me-up. These loans are easy to get and don’t require a lot of paperwork. Short-term loans are designed to be repaid quickly, usually within a year or even less, which makes them different from long-term loans that take years to pay off. 

In everyday life, there are many situations where a bit of financial help can solve immediate problems, enhance daily life, or provide relief from debt without causing further financial strain.

Our Short-term loans have a simple and efficient application process, and give you the power to secure funds within a short period with next to no hassle. Overall, short-term loans can be a practical solution for managing unexpected financial issues. Take a read through our site today to learn more about what we can offer.