If you have found yourself overwhelmed by debt, take a look at the following four ways to get out of debt fast. Taking note of the following tips and guidance will help you to shed the debt. Debt that is taking a toll on your financial situation and your stress levels.
Many people around the world are battling with debt daily. Although most people feel alone, frightened and overwhelmed when they find that their debt is swallowing them… You should remember that you are not the only one.
If the following tips do not help you. Or if you are still feeling incredibly worried, visit a professional debt counsellor and get help in managing your finances.
Having debt that you find you cannot pay back is a very serious situation to be in. As your creditor can take legal action against you.
You may find your house, vehicle and other belongings repossessed. Or you may be blacklisted. These are situations that you definitely want to avoid. Do not wait until it is too late.
At the first sign of trouble with debt, take action!
Four ways to get out of debt fast
These following four tips to get out of debt quickly should be done in conjunction with each other.
Getting out of debt is a process.
Tip #1: Take a good look at your finances
Then write down your monthly income. And your essential monthly expenditures.
Is the amount of income left over after your expenses less than, the same as or more than what your monthly debt payments are? You will usually find that without the excess expenditure that most of us do every month you can afford to cover your debt.
This might mean no spending on luxuries for a while. But it is important to make sure you don’t fall behind on any debt payments.
Tip #2: Make cutbacks
There are many ways in which you can save money every month. Even saving a few rand here and there on cheaper items may help.
- Buy cheaper brands of toothpaste, soap and your everyday groceries.
- Buy items that are on special when you can. Get a rewards card for the shops that you frequent the most.
- Use less electricity
- Clean your home yourself
- Carpool to save on petrol
- Don’t use as much internet
- Get a free instant messaging system on your cell phone instead of smsing or making phone calls
- Cancel your DSTV subscription temporarily and find entertainment that is not as expensive
Doing these small things will help you to save quite a large sum of money every month.
It goes without saying that you should cut down on spending and avoid buying certain items. For instance magazines, CDs, DVDs, books and other luxury products.
If you rent you could even move into a cheaper home. You could downsize your vehicle to a smaller, cheaper model.
Tip #3: Try to get a lower interest rate on your debt
Look into your options for finding a lower interest rate.
Phone your credit card company and the other financial service providers and simply ask them if anything can be done to lower your interest rate. Often, you will find yourself successful.
The other option is take out one loan and pay off all of your debt with it. Therefore you will only have to worry about one payment every month and your interest rate will be lower.
Tip #4: Find additional income
If you still find that you are not covering your debt, find a way to bring in additional money.
This is not as difficult as it seems!
Work out what your skills are and use them to your advantage.
For instance are you good at baking? Bake some easy items and sell them at the office or at markets.
Do you have a large collection of items that you no longer use? Sell them online.
Can you sew or knit? Make some items and sell them at markets or fairs.
If you have another skill, like swimming or dancing, you could teach classes in the evenings. Brain storm for half an hour and you are guaranteed to come up with some that will work.