Debt. It’s the one word guaranteed to put the willies into anyone who hears it. Debt means a shadow – a big, heavy cloud over your head – and it’s one that doesn’t seem to get easier to deal with until the debt is cleared out. While borrowing money is a normal part of life for many people, too much borrowing can lead to stress, anxiety, more expenses than is affordable, and a ruined credit score
Most people who deal with debt are dealing with something that they find impossible. It feels out of control, unmanageable and something that is too difficult to cope with. It’s for this reason that people play Ostrich, burying their heads in the sand to hide away. The problem with debt is that the more you hide from it, the bigger and scarier it gets, and the more you need the help of civil litigation solicitors. The shining light is that it is possible to take control of your debt, and though it will be scary to grab the responsibility of paying for your debt with both hands, it can be done.
It’s time to take a deep breath and dive right into our eight simple ways to get out of debt.
- Start With The Sums
Before you do anything about sorting your debts, you need to work out what you owe, and to whom you owe it. Once you have your list down, you need to prioritise your debts so that you can choose which ones to pay off first. Debts like mortgages or outstanding rent and council tax are priority debts, whereas overdrafts and payday loans can be managed a little easier. Being in a position where you are struggling to pay your debts is hard, but there are plenty of organisations out there that will help you to tackle them one by one. Debt is only scary when left alone.
- Budget & Save
Once you have your list of debts and what you owe, you can work out how to budget for paying them off. You can use online calculators like this one to work out what your affordability it, and you can figure out which debts you can offer a token payment to so that things get paid off slowly. Try to downsize your debts as much as possible by shifting to cheaper deals and saving up as much as possible.
- Speak To Your Creditors
As hard as it is to pick up the phone and talk to those you owe money to, you need to talk to them. Communication is better than ignorance, and communication is what is going to make the difference between what you pay. Creditors just want to know you’re going to pay your debt, so they’ll usually accept a minimal payment to show willing.
- Move Debt Around
If you can move your debts around, you make them more manageable. Putting all your debts together and paying it off with a consolidation loan can really make a difference to your outgoings and can take the pressure off of you! Always estimate whether it’s cheaper to do this, or whether you can shift balances to different cards for better benefits.
- Pull Extra Income
Paying off debt takes a toll on your outgoings, but if you make sure that you have enough money coming in, you’re going to have a better time of it. You can budget as harshly as possible to cut down your expenses, and you can sell things that you don’t need, too, to earn extra cash.
- Grant Eligibility?
Some people on low incomes find debts harder than others. However, you can seek help from large companies who offer grants for your utilities. There are other options for external financial help, too.
- Drain The Savings
We know, it’s for a rainy day. However, if you have enough savings to pay off a chunk of debt, the rainy day is right now. Your savings is there to support you, and if you can use your savings to pay down your debts, you should drain them down and build them up again when you’re more solvent.
- Get Some Help
Lastly, get the right support. Whether you are looking at a Debt Relief Order, an IVA or even bankruptcy, it’s better to know that there are options – even when you feel like there is no way out. Never be afraid to ask someone for advice when you truly need it – debt is the ocean, but the advice is the lifeboat to get you to safety.