If you’re running yourself into a mountain of debt, then it’s time to fix up and do something about it. No idea where to start? Here are eight simple steps to get your debt problem dealt with! Check it out below.
1. Don’t Ignore Your Mail
Firstly, when you come home each evening to see a new stack of letters on your doorstep, don’t simply chuck them away. Be sure to read all of your mail so that you’re fully aware of the financial trouble that you find yourself in. It is no good shredding up all of those important and threatening letters. You can't go thinking that your financial woes are going to disappear – because they won’t. You need to front up to the pile of debt that you have created and start to act on it. Be sure to note down the amount that you owe to each individual, bank or credit card company. This will help you to keep track of all the money that you need to repay.
2. Accept Your Problem & Open Up To Those Closest To You
This next step should be far easier if you have managed to do the first. Accept your debt problem and open up to family and friends about it. They may be able to help you financially, or offer you advice that could help you get out of the mess that you are in. Having the support of loved ones could really help you get through this tough time in your life. After all, don’t you think it is time that you took financial control of your life? Confiding in those closest to you might be the motivation that you need to really start getting your act together. So, we highly recommend that you take our advice and open up. You can’t hide from debt forever!
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3. Draw Up A Budget
Your next step should be to work out what is going in and what is going out of your account each month. You should also identify how you are paying for routine bills each month, too. If you are using a credit card to regularly pay off recurring payments such as a mobile phone bill, then this needs to stop. It is only racking up your debt and ruining your credit rating. Drawing up a budget is really simple. Just open up Microsoft Excel and create a spreadsheet where you can fill in all of your ins and outs. Once you’ve got your financial head on, things will begin to look a lot clearer.
Once you’ve worked out where all of your cash in going, then it is time to factor it into how you go about your spending. If you have decided that you’re spending an awful lot of money on stuff that you don’t really need each month, then cut it out. For example, if you’re buying all branded food at the supermarket, but don’t have the acquired taste for it, then change. Swap it out for the supermarket’s own branded stuff. This could save you a lot of cash every time you do a weekly shop! Less spending means less debt. So, start shopping savvy to avoid your mounting pile of debt getting any bigger. Everything you save can go towards paying back the money you owe, too.
5. Start Earning More
If you’re saving loads of money, then that is excellent. However, nothing will help you cause to become debt free quite like earning more money. There are lots of ways to do this. However, one of the best is to gain an additional stream of income. If your normal working hours of 9-5, five-days-a-week aren’t earning you enough money, then it might be time to take on some additional work. You could work in the evenings or at the weekends. Bar work is great for this, you can get a much higher wage for working unsociable hours, but it is also a great way to meet people. A lot of bar staff get well tipped, too. So, what are you waiting for? A little bit of extra work on the side could change your fortunes!
6. Sell Your Assets
Are savvy shopping and extra revenue not seeming to be enough to get you back on track financially? If so, then it might be worth considering selling some of your more valuable assets. If you have multiple cars, for example, but only need to drive one, then sell up! A few thousand, or even hundred wouldn’t go amiss in a financial crisis this serious. If you’re a serious petrolhead and can’t bare the thought of parting with one of your cars, then you need to realize that is a sacrifice that you have to make. Especially, if you aim to become debt free! eBay and Gumtree are both sites for selling things on.
7. Seek Professional Help
Finally, if none of these DIY methods have been overly successful for you, then it might be worth seeking professional help. This is in order to help you consolidate your debt. There are so many websites and companies that are willing to do this for you. However, some of them aren’t all that reliable, whereas others are very reputable. It is advisable to take a look at reviews of specific companies or websites before going into business with them.There are plenty of reviews available to consumers online in order for them to make up their own minds about whether this is a service suitable for their needs. This might be something you wish to do before committing to the help of one particular professional debt help service. There are the costs of doing this to consider as well, too!
Hopefully, this post has shown you the importance of dealing with debt and soon as you can come round to accepting that you have a problem. Once you have got past that stage, it is very simple to sort things out! So long as you follow our steps, that is. Debt can be a very horrible experience, so everybody, including the banks, is willing to help you get out of it. Starting being more savvier with your money and everything should get that little bit easier. All the best!