Once your debts start spiralling out of control, it can be hard to think about anything else. Worse still, the growing financial problems will be exacerbated by your increased stress levels. Therefore, regaining control of the situation ASAP should be at the very top of your agenda.
It may feel like an impossible task, especially if your recent efforts haven’t made much of a difference. However, you don’t have to wave the white flag just yet. Try the following five ideas first as shared by a contributor.
#1. Ask For Financial Help
When looking to improve your financial situation, you must first look to stop the problems before they begin to escalate. Professional help with debt can support your cause in many ways. It could mean putting a freeze on all interest charges, consolidating to a low-interest account, or writing off some charges. It will instantly put you on a better pathway as you’ll be able to clear your accounts in a shorter time despite making smaller monthly payments.
Conversely, attempting to fix the issues alone could limit your hopes of success.
#2. Create A Clear Strategy
It is far easier to reach your destination on time when you plan the journey ahead. There are many different debt clearing strategies to consider. This could mean clearing the largest debt first or the account with the highest interest rate. Alternatively, you may clear the smallest debt first to create a snowball effect. This is something you can discuss with an expert. Either way, sticking to a defined strategy will ensure that you do not fall further behind.
Aside from clearing the debt faster, it’ll put you in a far healthier mindset.
#3. Spend Less On Luxuries
The harsh reality is that most people in debt will need to make some cutbacks and sacrifices. When you make the right choices, though, it needn’t impact your quality of life. Trading the big family holiday for a camping trip can save you hundreds of pounds. Yet the experience can be equally amazing, especially for youngsters. Meanwhile, switching to more affordable brands can be useful for a variety of ongoing purchases.
You’re allowed to enjoy life. But putting extra funds towards your debt will clear it sooner.
#4. Stop Helping Others
On a similar note, it’s not only necessary to think about your personal spending. If you are guilty of letting friends and relatives borrow money from you, this must stop. At least until your debt is cleared. After all, falling deeper into your overdraft or missing payments because a loved one has your money will cost you dearly. If nothing else, it is far easier to manage your debts and repayment plans when outside influences are removed.
It’s OK to put your finances first. In fact, right now, it’s essential that you do.
#5. Earn More
OK, so we all know that earning more money is a lot easier said than done. If you haven’t had a pay rise for a while, though, you are well within your right to ask your boss. It should be in line with inflation and can also take into account your added experience or responsibilities. Another option could be to take on extra work via overtime and other methods. Or you could try to earn some money on the side from a side hustle.
When you have more funds available, you’ll be in a stronger position to clear debts.