5 Tips For Dealing With Debt

by Pam on October 10, 2017

Getting into debt is something that could happen to any of us. However, money is often a subject that people don’t want to talk about. Dealing with debt can be challenging and it isn’t something you want to be doing alone, you should talk about it,  gather resources and help. Here are 5 tips that will help you deal with your debt. Remember that debt doesn’t need to tear us apart. We can deal with it.

Tip 1 – Don’t Hide From It

It can be tempting to bury our heads in the sand but living in denial will not help you with your situation. You need to start by going through all of your bank statements. You also need to open those bills that you have been ignoring. You don’t have to do this alone. Call a friend or a family member to sit down with you and help. Now set up a spreadsheet and make a list of how much money you owe to each company. You should also include the rates of interest. This will help you prioritize your debts.

Tip 2 – Draw Up A Budget And Stick To It

You now need to work out how much you can afford to pay off each month. Look at your income and calculate how much you need for living costs. Are there any areas where you could save money? Could you cancel your gym membership? Look at where you could make savings and as a result, pay those debts off quicker. Then you need to work out how much you have left each month. The money that is left over can be used to pay off your debts. Draw up a plan and make sure that you stick to this each month.

Tip 3 – Ask For Help

Perhaps you feel like that you are going to struggle with paying your debts off. You could always ask for further help. Remember you don’t have to do this alone! You could look into debt relief, debtreliefprogram.co has an online form where you can explain your situation and they will respond to you within 24 hours.

Tip 4 – Switch Your Debts to 0%

If you owe money on lots of credit cards with high interest rates, you should  find out if you can transfer those debts to another card with lower interest rates. You can compare credit card deals on this website https://www.creditcards.com/low-interest.php. You need to make sure that you check the terms of the deal. Will you be able to repay your debt within the offer period? You could also look at your overdraft terms. Are you paying a high interest rate for your overdraft? Would it be better to switch bank accounts to get a better overdraft?

Tip 5 – Save, Save And Save Some More

This is more for what to do for when you have cleared your debts. You don’t want to find yourself in this situation again. As we talked about earlier, it really can happen to anyone. It only takes one unexpected expense to tip you over into debt. That is why we should always be prepared. Try and start saving a bit of your income every month. This means that you will have a rainy day fund for the future and hopefully you will never find yourself in this situation again. Get saving.

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