Drowning in debt is a fate many fear worse than death. You’re still alive and yet you’re being tortured by all the choices you’ve made that have gone awry. Even if you try to ignore and pretend that these don’t exist, they haunt you in the form of vigilant creditors and debt collectors who hound you like there’s no tomorrow. On top of that, your terrible credit history won’t let you forget your bad choices. Since you cannot get your debts to go away with a snap of a finger, the only solution is to face them head on. Here are some tips on getting out of debt responsibly:
Treat the Cause and Not Just the Symptom
Debt is already the symptom that results from terrible lifestyle choices and bad habits. Gather all your data and figure out how you got there in the first place. There could be many factors: instant gratification, emotional spending, a sense of self-worth that’s tied to material possessions or similar. Figure out what your trigger is, then address it. Otherwise, your cycle of accruing debt and paying it back won’t stop.
Make a List of Your Debts and Income
One of the nation’s top debt consolidation firms, Brice Capital, suggested that you make a list of all your debts so you can see what you owe in black and white. Then, make a list of all your income streams, including assets, so you can get a clear picture of your overall financial standing. Comparing your assets and liabilities may be able to help you figure out how to pay some of your overdue loans.
Consolidate You Debt
Try consolidating all your debts into one larger loan that has lower interest rates. Private money lenders like Brice Capital are more than willing to work with clients to help them escape their dire financial condition. The advantage of having a single consolidated loan is that you don’t have to keep track of all the many different due dates, rates and payment amounts, so the chances of you making a mistake is slim to almost none.
Pay More Than What You Have To
A surefire way to keep you stuck in debt is to only pay the bare minimum. The money you owe will just grow out of hand with that kind of payment strategy. It is better to overpay, so you will not be a prisoner to your own debt. If your credit card, for instance, allows you to pay a minimum amount of $25 for a $1,000 balance, it’s better to set automatic monthly payments of $100 or more to clear the debt faster and lower the monthly interest fees charged on your credit card.
Earn More Money
If you really want to get out of debt, then earn more money. There are many ways to do this from part-time jobs like tutoring or working as a sales associate, increasing your work hours so you’ll get overtime pay, doing a side hustle like baking or babysitting, working a second job that allows you to work remotely from home, etc. With the advent of technology, there are many opportunities for part-time and home-based work, which is ideal for stay-at-home parents and students who only have a limited amount of time and energy to make a second job work.
Quit Unnecessary Spending
Since you’re stuck with a lot of debt, it makes perfect sense to not add more to it. Instead, live within your means and resist the urge to borrow even more money. Only spend on the necessities to keep you alive. Cut out the designer coffee, eat at home more, watch your movie on Netflix, and download free books. There are so many free or cheap alternatives for activities these days that do not break the bank.
Create a Budget and Stick to It
In addressing your debts, it is important to create a budget plan and then stick to it. Resist any temptations to deviate from the set schedule because doing so can set you back tenfold. Remember to enforce self-discipline to achieve your financial goals.
The only way for you to get yourself out of the pile of debt you are buried in is if you commit to a long-term debt repayment strategy. Fortunately, debt repayment strategies aren’t rocket science. Given enough financial discipline and self-control, anyone and everyone can easily adopt it into their financial planning. Prove to everyone, most especially yourself, that you’ve got this!