The threat of getting into serious debt doesn’t just hang over a few unlucky people. In fact, it is possible that anyone can get into this situation either through bad luck or poor decisions. Whatever the reason, being in debt is not a stable place to be, and you therefore want to clear it as soon as possible. The following blog post gives you an overview of how you can go about this task.
Create a Budget (and Stick to it)
Many of us simply have no idea how much we are spending on a monthly basis. Therefore, the creation of a household budget can be quite an illuminating task, as well as being ultimately useful. Once you have identified where your money is going every month, you can also take steps to ensure that it is not being wasted. Try to split up your monthly costs into essentials and non-essentials. The latter column is where you can make the biggest cutbacks, but you may also be able to tackle the essentials column to by shopping at a cheaper supermarket, comparing and reducing your energy bills etc.
Use the Snowball Method
The snowball method is a common one that is advocated by debt-advice experts. Essentially, it involves making a list of your debts and ensuring that you make the minimum payment on all of them. Then, you should select one to target. It can either be the smallest figure on the list or the one which you are paying the most interest on. Either way, you should channel any excess funds that you have towards paying it off. Once this is done, you can then move onto the next one, and continue until they are all taken care of.
Increase Your Income
The internet has opened up a whole host of ‘side hustle’ opportunities that give you the chance to increase your income. There is plenty of creative work out there, so you may be able to pick up some freelance jobs in graphic design, copywriting etc. Alternatively, you could try setting up your own online shop. You could also look into sites such as Taskrabbit to see if there are any jobs that you could pick up from here. Another option is to see if there are any part-time job opportunities out there.
Sell Unwanted Items
If you have accumulated some extra unwanted items over the years, now is the time to sell them off for some extra cash. Obviously, you can do this the old-fashioned way with a yard sale. Your other main option is to go down the online route, which is a path that is getting easier and easier with such a wealth of websites out there. If you have anything of particular worth, it may be worth having it valued before you sell it to ensure that you walk away with a good price.
Enlist Professional Help
If you are struggling to deal with your debt by yourself, another clever option could be to enlist some professional help – whether this is from a debt resolution and lawsuit attorney or an accountant. Either way, they can provide you with some useful advice and guidance in different areas of financial and legal support if you need it. If you are running a business that is going south, this can prove to be a highly worthwhile option.
Negotiate a Payment Plan
If you don’t ask, you don’t get. Simply by getting in touch with your credit card company or other debtors, you may find that you are able to negotiate a payment that is easier to manage. If you have a good history of paying off your debts on time, you are likely to find that they are willing to make a concession. The worst that you can get is a no, so it is certainly worthwhile asking the question.
Reduce Temptations to Overspend
Everyone has different triggers when it comes to overspending, so you can go a long way by simply reducing your exposure to these. If you always find yourself spending money when you visit a certain online store, now is the time to be disciplined about not visiting – or even block the site entirely. When you go out of the house, not having a credit card in your purse or wallet will ensure that you don’t make any impulse purchases.
The list above represents some of the best ways that you can get out of debt faster, so why not give them a go yourself?
