It’s so easy to fall into serious debt. The majority of us will have experienced debt issues at some point in our lives, and many of us will have a debt to our name now. Some might have been irresponsible with the amount of money you’ve been borrowing; others may have experienced a personal issue which has resulted in their inability to meet repayments on time.

If you find yourself in major debt, it is important that you clear it as quickly as possible, regardless of the reasons you have found yourself in such a situation. As you fall further into the red, you will become more and more stressed. So it’s time to get yourself into gear and start making your way back into the black.

Consolidate Your Debts

An important first step to controlling your debt is to consolidate it. You might find that you are paying off multiple credit cards at once. This can result in confusion, and it becomes easy to miss repayments when you are expected to pay back multiple sources on different dates of the month. This is where a personal loan can come in useful.

Unsecured loans allow individuals to take out a loan quickly and easily.  The process is simple: you contact the lender, file an application and, if approved, a lump sum will be deposited in your bank. Use this money to clear your credit cards as soon as it is available to you. Now all of your debt is in one place with one lender. This will make life easier for you, as you only need to remember to make your regular payments to one source.

Keep Up With Repayments

Now, this is important. Once you have consolidated your debts, it is paramount that keep to the repayment terms of your new lender. You don’t want to incur extra charges and now is a great time to improve your credit score, which might have been damaged by your previous financial habits. Avoid borrowing any more money, whether from professional lenders or friends and family.

Monitor Your Spending

If you don’t already have a budget in place, establish one. A budget should highlight your earnings and compare this amount to your outgoings. Needless to say, your earnings should be sufficient to cover your outgoings. If you find an imbalance (say, you are spending more than is coming in), it’s time for a change of lifestyle.

Work out exactly how much you have come into your bank account and divide this appropriately between your rent or mortgage payments, bills and general living costs. An easy place to cut down is your food shopping: opt for supermarket own brands over branded products.

You could also eat out less and banish takeaways. Start cooking at home: your wallet and your body will thank you. Cut down non-essentials, such as television packages and added extras on your mobile phone bill. Now is the time to get frugal. The fewer outgoings you have, the more you can put towards clearing your debts.

By Erica Buteau

Change Agent. Daydream Believer. Maker. Creative. Likes love, peace and Jeeping. Dislikes winter, paper cuts and war. She/Her/Hers.

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