Getting Yourself Out Of Debt

Getting Yourself Out Of Debt

When you are struggling with debt, it can be a very stressful time in your life, and it is important that you tackle the problem head on. The webmd.com website has an interesting article on the relation between debt and stress, which may just help to show you that you are not alone in the world with your worries. The first thing that you need to do to get rid of your debt is to put together an assessment of all of your finances.

Adding Up Your Finances

It is important to know exactly where you stand with your finances, so the first thing you will need to do is to add up all of your incoming revenue, as well as all of your outgoings. You will need to be honest when adding up everything so that you can get a clear picture of where you stand. If your expenditure is greater than you incomings, then you will need to cut a few corners and tighten your belt to be able to get your head above water.

Getting Help With Debt

It is also advisable to get debt assistance from a professional agency that can assist you with all of the options that you have available to you. Many financial companies offer advice to customers, and you can use these services to find the solution that fits your circumstances best. Not all businesses are the same, so it is important that if you are looking for a service such as debt consolidation, that you shop around and find the best deal that is available to you.

Consolidate Your Debts

If you have a lot of creditors that you make a small payment to each month, then it may be worth your while in looking for a debt consolidation loan. Rather than making a minimum payment every month which prolongs the life of the debt, you take out one loan to cover all of your debt and pay it off in full. What this leaves you is one easy payment each month, which can drastically reduce the overall amount of interest that you might pay on your debt. Although this solution is not suitable for all circumstances, it may be one that a financial advisor will recommend for you.

Making A Change

When you have a plan to pay off all of your debt, you will then need to ensure that you do not get into the same situation again. You will need to work out a monthly budget that is achievable and make sure that you stick to the budget. Allow yourself a couple of luxuries but make sure that you prioritise to get rid of all of your debt as quickly as possible, and stay in the red rather than getting into debt.

There are many ways that you can save money by reducing expenditure in things such as luxuries, travel, clothes, as well as the weekly shopping for food. Use coupons where you can and shop around for all of the essential products that you need. You can buy cheaper brands of products that are very similar, and save a substantial amount of money over the space of a year. When you get your head above water make sure that you keep it there and you will significantly reduce the amount of stress in your life.

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  • Gareth Torrance

    Making a change in your lifestyle for a while is what I did to get out of the near crippling debt I was in… And it worked. I’m now debt free, apart from the car I have on finance which is easily managed.

  • Such an important post as it is so easy to get yourself into debt, but so hard to get out of it!! I hate owing money and I know it has caused stress for me in the past x

  • This is such a great post debt is something that effects so many people and can of course cause so many issues.

  • Hannah Latoya Bond

    Debt can be very stressful. Thanks for sharing this as this is very useful

  • Joanna

    Great post I don’t have any debts however my husband does I think consolidating debts is a good idea.

  • Great post, I do think consolidating debts and paying off the smaller ones first can help as it makes you feel that you have less left x

  • Melanie Williams

    Some great advice here. Getting help and making changes are key 🙂 x

  • Becca Talbot

    I used to be a finance journalist, and then after that a journalist at MoneySavingExpert.com, so a lot of these tips have become part of my life to stop me getting into debt. But if you are in debt, getting help is the key x

  • This is a great post with solid good advice. Being in debt sucks! Fortunately Mr taxman came to my rescue and got me out of tax (a place where I use to work wasn’t taxing me correctly so I got a HEFTY refund!) xx

  • Jenna E Morley

    Some really sound advice, financial struggles can be so stressful

  • Ayesha Farhad

    this is such a useful post! I always hate being in debt even though its the smallest amount!

  • A very useful post with some great tips x

  • Alison Rost

    Boy, I sure can remember being fresh out of college and how much of a burden of my student loans. It was a really stressful time. My father gave me some great advice. He said keep living like a college student for a few more years and put all of your money toward your loans. Before I knew it, I was debt free and haven’t looked back!

  • Louise

    This is really good and important lots of people just keep trying to brush it all under the carpet but it’s so good when you get on top of your finances 😊

  • Kira L Curtis

    Fingers crossed I won’t get into debt but it’s definitely very important for people to know that there is help out there!

  • I highly advocate consolidating your debts – After finishing uni, this way of solving problems made me feel so much better.

  • I’m in the process of trying to get out of debt myself and it can feel so taxing at times!

  • I can’t believe it’s been 3 years since I pay off all my university debt and normal debt. I did follow some of these steps but I totally avoided consolidating my debt. For me it wasn’t something I wanted to do or would enough people to go for

  • Love these tips. I used to struggle with money but making a budget and plan and sticking to it was the best thing I ever did x

  • Baby Isabella

    Fantastic tips! We’d definitely recommend consolidating debts and sticking to a budget x