If you’re in debt, you may be wondering how to clear it. Well it is certainly possible, if you take the right steps.
Millions of us have been there. Your circumstances change and you have to start relying on credit. At first you think it’s manageable, but before long, you realise it’s getting out of hand. You owe lots of different companies and you’re struggling to keep track of who is owed what. So what steps can you take to sort it out?
The first thing to do, if you have unmanageable debt, is to keep calm. You will be able to sort it out. Remember, millions of people get into debt each year and they manage to find a solution. You aren’t the only person to have got into the predicament and it’s something you can also find a solution to.
Pat yourself on the back
If you’ve been beating yourself up for getting into debt, then stop right there. You are facing up to your problems and that is the first step to sorting it out. So cut yourself some slack and pat yourself on the back. Remember, every journey starts with a single step and if you’re reading this article, then you’ve started your own debt busting journey.
Confide in a friend
If you feel that your debt has become unmanageable, then it’s to tell a friend or a loved one, as a problem shared is a problem halved. If you don’t feel that there’s anybody you can trust to speak to, they you could always contact the National Debtline.
Consider debt consolidation
It may be worth consolidating your debts. This means that you’d take out a new loan to pay off other consumer debts, so all of your debts are combined. If you decide to go down this route, then you’ll probably have more favorable payoff terms. You can expect a lower interest rate, a lower monthly payment, or both. Click here to learn more.
Make a realistic budget
It’s important that you don’t allow your debt to escalate any further. To avoid this from happening, you need to look at your income and your outgoings and make a budget. You should tot up all of your regular bills, as well as accounting for annual expenses, such as birthdays, holidays and Christmas. Don’t forget to think about unexpected bills as well; work out what you will do if the boiler suddenly breaks.
Make cutbacks where you can
You won’t want to cut your expenses down completely, as you’ll probably feel miserable. But it does make sense to make some cutbacks where you can.
Consider buying secondhand clothes instead of new ones and opting for basic brands in the supermarket. You will be surprised by the difference saving small amounts can make to your bottom line.
Keep an eye on your credit score
If you’ve been in debt, then your credit score may have been impacted. So make sure you keep an eye on it and get any misplaced penalties removed.
If you take steps to get out of debt and you learn to live within your means, then you will, in time, clear what you owe.
It’s great that you’ve decided to tackle this issue and you must remember that millions of people are able to clear their debts. And there’s nothing to stop you from becoming one of them.
Note: this is a paid collaboration.