Dealing with debt, especially if you’re in dire straits, can be very tough. Becoming debt free requires a lot of determination and focus, however with our amazing one-hour get-out-of-debt help plan, you’ll be able to pay back your creditors and get your finances into the green in no time. From sleepless nights to anxiety attacks, debt hurts everyone – get determined on the road to financial recovery!
First things first - In order to get out of debt, you have to have a debt-free mind. The only way to get your bank balance into the green is to tackle your finances head on, and if you’re not determined, you want be able action any solutions on your debt crisis. We understand that it’s tough to pay off multiple debts when you’re short of money, but it is very important that you keep on top of your payments.
It’s also integral that you don’t fall further into the debt trap, so stay away from credit cards, store cards, or any other form of loan! You must begin to realise that if you can’t afford a purchase, then you’ll just have to go without. One of the main causes of debt is excessive spending, so reducing your unnecessary purchases should be a priority.
Another easy way to reduce your debts is to pay off your high interest credit cards. Firstly, separate your cards into high interest and low interest piles so you know which creditors you actually have to pay back, and then cut up the high interest ones! The last thing you should be doing is using high interest credit cards when you’re in debt, or you may find yourself applying for an IVA.
Getting your bank balance into the green means distinguishing good and bad debt. Some debts are worse than others, and you’re going to have to identify the debits that are causing you to part with the most money every month. The biggest debts need to be prioritised, and getting them out the way will mean you have more money left over at the end of the month.
Mortgages and student loans are examples of manageable debt, as they usually have an interest rate under 10 per cent. Bad debt on the other hand encompasses everything else, and from credit cards to high interest loans, there are the expenditures that you should be paying off first. Debt calculators are a great way to organise your finances, so click here to see how you can be better off.
Getting out of debt means attacking your bills head on, no matter how big they are. Collect all your repayments statements and calculate the interest you’re being charged on your minimum monthly repayments. As soon as you have a figure, then that’s the amount that you have to set aside from your pay cheque every month to pay off your bills. Better yet, it’s probably best to set a little more aside as creditors don’t like to see minimum repayments.
You’re going to have to be very tough on yourself if you want to get out of debt. Putting a little extra money aside each month will leave you with a nice pot at the end of the year. This can help you pay off some remaining balances, putting you in a great positing for the year ahead!