Debt Help

There are a couple of things that have to be kept in mind though regarding taking on another job. Firstly, you’d have to speak to your current employee to find out whether you’re legally allowed to go ahead and do so or not, depending on your employment contract. There are tax issues too that have to be taken into consideration. For instance, if you are being paid in gross by your employee, make it a point to always have a certain amount of cash set aside to pay an extra income tax liabilities. You will also have to pay national insurance payments, so these things should be kept in mind.

 

There are certain non-standard ways of earning some extra cash too. These are not your usual jobs, but they could help improve your financial standing. You could take part in a market research group, or even get paid as a mystery shopper. Another way that is also out of the ordinary is to volunteer to be a medical guinea pig. Please keep in mind that you should be aware of all the important information regarding this though, since the last thing you’d want to do is to mess up your health in the bargain.

 

Another means of income that you could consider is that of renting out a room in your house. If you do have an extra room in your house, this is something you should seriously consider because any income through rent that amounts to less than £4,250 per year is not taxable as income tax. This means that you get to keep everything you make from renting out your room. To put this into perspective, being a basic tax rate payer, the amount you’d have to earn before tax to get the same benefit after tax is £5,666.

 

Keep in mind though, that increasing your income is just one way of improving your financial standing. What you could also consider doing in order to pay off your debts faster and in a more hassle free manner is to take on a debt consolidation loan. This would allow you to pool all your debts into one so that you don’t have to worry about paying several creditors and can concentrate on that one monthly figure that you’d have to generate. Successfully paying your monthly repayments would mean that your credit would also improve. A more drastic step to a certain extent would be to sign up for a debt management scheme. Entering an individual voluntary arrangement or filing for bankruptcy are two more options that you could exercise if you feel that you’re in too deep in debt.

 

Deciding which option to go in for is a very tough decision and this is where the Citizens Advice Bureau comes into the picture. The Citizens Advice Bureau will give you worthy advice on how to go about repaying your debt and rebuilding your credit.

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