With the Global Financial Crisis, rising interest rates and higher costs of living, it’s no wonder so many of us are in over our heads. How can you get out of debt when you are struggling to make ends meet as it is!! There is no easy solution, but a few steps in the right direction will see you well to start climbing out of the debt spiral! It’s all about finding ways that works for you, here are some solutions to Get Out of Debt!!!!
Don’t Take on More Debt
Unless you are considering taking out a Debt Consolidation Loan (and we’ll talk about them in another post) – don’t take on any more debt!!! This may sound obvious, but it’s easy to be complacent when your up to your eyeballs in debt!
Take Responsibility for Your Debt
Get out all your statements, balances etc – and find out how much debt you are really in – put an actual figure on it. How can you get out of debt if you don’t know how much debt you are in!! Putting a figure on your debt is scary stuff. But own it – write it down – put it on the fridge – then start figuring out how to stop that figure from owning your life!!!
Do a budget – find out how much money is coming in – and allocate each debt a certain amount (read the paragraph below first!!!). It takes solid planning, dedication and time to get rid of debt. It won’t be easy, but if it was easy – no one would be in debt!!!!
If you don’t have enough money to cover the basics – it’s time to start either considering talking to your creditors to explain your situation to them or looking into a consolidation loan. Perhaps consider taking on some part time work if you can to increase your income, AND really pull your belt in and live very frugally to reduce your current spending!
One Debt at a Time
Find the debt with the highest interest rate – and tackle that one first. That’s not to say you stop paying your other debts, but any extra money that might come your way goes straight to that debt FIRST! Even if you have to pay minimum reppayments on your other debts to get this one paid off. Once it’s gone – you will have a bit of extra money to start tackling the second debt on the list and so on. The first debt is the hardest – so stick with it!
We will be doing a lot more posts on getting out of debt – so keep checking back at the website!
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