Eliminate Your Debt
Being in debt can be the worst feeling in the world. If you are currently in debt then it is best to try and recover as quickly as possible because if you let the money you owe linger for too long it may start to ruin other aspects of your life, your friends, family, relationship and mental well being can all suffer. No debt problems are unsolvable. It takes work and dedication and in this article we will take a look at a few of the tips you can apply today to help you get out of debt in the quickest way possible.
Share Your Debt Problems
First off you have to admit to yourself and your family that you have debt in the first place. Sharing this with your family is an important part of solving your money issues. You might think handling it alone is best for everyone but having someone to support you and share the problem with can be a key part of erasing you debts. If your family and loved ones see you spiralling out of control they can be a safety net in tough times.
Negotiate Your Costs
You will have plenty of fixed costs every month, things like telephone, Internet, cell phones, insurance, cable tv. Try and negotiate these costs so you are paying the least amount possible every month. Make sacrifices do you really need hundreds of TV channels can you cut costs. You will need any extra income you can get and by negotiating you fixed costs you can save hundreds and hundreds in cash every year.
Make A Budget
Take a look at your expenses every month, things like groceries, car expenses, coffee and magazines. Is everything you buy essential or a luxury. You will want to cut the things that arenât essential and allocate that money to your debts.
Take Away the Cause of the Debts
If you have lots of credit cards cut them up. If you keep on using them you will only go deeper into debt. If you take away the source of the debts you can then work on getting out of them. Do you have a car and have to pay upkeep and loan repayments on. Can you sell it and make do with public transport or just use it less. If you can make sacrifices anywhere to better your situation then take them.
Prioritise Your Debts
Out of all your debts, school fees and mortgages should be paid last. You want to concentrate on your most expensive bills first.
Pay Your Most Expensive Debts
Get together all your bills and debts and look to see which one is the most expensive. When I say expensive I donât mean the biggest. Look at the interest rates and see which bill is accruing the most interest. The ones that are gathering the most interest each month are usually the ones you want to pay off first. Work on one bill at a time and for the rest of your debts pay the minimum amount. Once you have wiped out one debt you will have more money free each month to pay your other debts, so you can build up some momentum.
Keep On Chipping Away
Keep on reassessing your finances and paying you debts off one by one and soon enough you will get there and erase all of them. It can be hard and take lots of dedication but you will be better off for it. Â