Getting into debt is incredibly easy, in our daily lives we are surrounded by offers of interest free credit, car finance, personal loans, mortgages and hire purchase and whilst these can be great options to use when managed properly, many fall into the trap of taking on too much. When this happens it can leave people with mountainous debt that continuously grows month on month with interest charges and getting out of this debt can be very difficult. The impact that this has on people’s lives can be awful, it adds increased pressure and stress to their lives as they look for a way out. If you find yourself in a situation like this then here are some tips to help you start the process of getting out from under the debt.
An all too familiar option that people take when they find themselves in debt is to bury their heads in the sand and pretend that it isn’t happening. Ignoring calls and letters from creditors may seem like it gives you a break from the stress but the truth is that this is only temporary and whilst you are in ignorant bliss, the debt keeps piling. You must face the facts, you are in debt, spend some time looking at exactly how much you owe, work out how much you earn and how much you can afford to pay, once you’ve done this, speak to each of your creditors, let them know your exact situation and try to reach an agreement on repayments or interest amounts. All lenders have a responsibility to their clients and they will always look to offer you a solution.
There are hundreds of charities out there that offer free help and advice on getting out of debt, they can help you with finance management and they can even speak to lenders on your behalf. Don’t be afraid to ask for help, these people are trained at helping those in debt to overcome it and a simple phone call could be the best decision that you will make as you seek to pay off your debts. Beware any companies who ask for payments up front to act on your behalf and make sure that you research well which company you are going to use to avoid any scams.
Cut Your Cloth Accordingly
Financial planning is one of the best ways to avoid more debt and help to repay your existing debts. You should drill into every aspect of your life and work out where your money goes and why, use phone apps to stay on top of your spends and once you have a full understanding of what you spend your cash on, it is time to start cutting things out of your life. The road to debt freedom will be tough, you will have to stop nights out, restaurant trips, a night at the movies, reduce your grocery spends and reconsider every purchase that you plan to make. Whilst it will be difficult, you need to keep in mind just how you will feel when you pay off that last dollar and can once again breath without worrying about who you owe money to.