You don’t have to be in debt all your life. Far from it, in fact, it is possible to dig yourself out of the hole you find yourself in, clear your debts, enjoy greater levels of disposable income and save to secure your future.
Sound too good to be true? It isn’t, but don’t take my word for it- check out these simple stepping stones to a debt-free future:
Pay More than the Minimum
This is a really obvious one, but it’s definitely worth mentioning because so many people coast along paying the minimum so that they have more money available to spend right now, not thinking about the fact that their debts are only going to accrue more and more interest, leaving them with a lot less in the very near future. The more you pay now, the less you pay later and in total!
Transfer Your Balances
Check out the best balance transfer credit cards, and make use of them. It’s very simple to do, and it will save you a bundle in interest payments. You can use the extra cash to start paying off more than the minimum to clear your debts a whole lot faster.
It might not be what you want to hear, but making big buts to your current spending habits will, perhaps more than anything else, help to dig you out of the grave that your debt is keeping you in. Whether you have an extravagant shopping habit or you’re a regular smoker, or you have two cars when you could really make do with one, or even none, doing whatever you can to rid yourself of these extra indulgences, will leave you with more money to pay down your debts.
Negotiate Your Way Out
In some circumstances, it is possible to negotiate with the people you own money to and get your debts, or your interest payments, lowered. This is an excellent avenue to explore if your debts have become really unmanageable and even making the minimum payment is getting hard.
At the other end of the scale, it is also possible for people with a good credit record, who have diligently paid their bills each month to negotiate a lower interest rate because companies want to keep their customers onboard. This is useful for those times when you really do need to use credit, but you don’t want it to cripple you - you want to do it the right way. Bear it in mind for then!
Consolidate All of Your Debts
Another way to cut down on the amount of interest you pay is the process of debt consolidation. This is where you take out a loan to cover the costs of all your existing debts. That way, you can clear them immediately, only have to worry about one monthly payment and pay back less interest. This is an excellent way to dig yourself out of debt, but only if you do it right and check that you will actually be paying less overall - it isn’t a given!
Time to start digging!
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