Being in debt is like having a black cloud hanging over your head all of the time. Nobody wants to owe money, so the best thing you can do is get out of debt as fast as you can. For some people it may take only weeks/months. For others, it may take years. However, if you’re consistent, you should be able to get out of debt pretty quickly.
Set Up a Direct Debit Payment
By setting up a direct debit payment, you won’t even need to think about sending the money over. This won’t give you a chance to decide not to and do something else with it either!
Cut Down on Luxuries
If you’re struggling to get out of debt, one of the best things you can do is cut down on luxuries. You probably have many luxuries without even realising it. You could cut down on lots of things; branded foods, clothes, and meals out to name a few. Work out where you can cut back for now to put more money towards your debt! Here are some ideas you can use to cut back on your luxuries.
Work Out a Budget
One of the only ways you can be sure of how to live and pay off your debt at the same time is to work out a budget. Work out how much you have for food and the other essentials, then how much you can realistically put towards your debts. Bear in mind the longer you’re in debt, the more interest you’ll likely need to pay. Whatever is left over can be put towards luxuries, but keep it to a minimum.
Work Out the Best Method for You
There are a few different methods of paying off your debt. One method suggests you pay off your larger debts first, so you don’t need to worry about the high interest. Another suggests you pay off the smaller debts and move on to the bigger debts, so you feel you are actually making a dent in them and you gain momentum. There’s even the option to get a consolidation loan with DirectAxis, which will make the process much easier. Make sure you do lots of research so you find the right method.
Stay Focused on Your Goals
It can be difficult to stay focused on paying off your debts, especially when you want a new pair of jeans or the latest computer. However, you must stay focused. You can treat yourself later on when you have a bit more money from paying these debts off. You definitely don’t want to get yourself deeper and deeper into debt! The quicker you get out of the red, the sooner you can focus on building your credit back up.