Do Away With Your Debts

by - January 15, 2018

Being in debt can feel like you’re constantly carrying a large weight around with you. Some of us suffer from big debts that keep on accumulating interest as we struggle to pay them off. Others have lots of small debts such as personal loans and credit card bills that together can become costly and confusing to keep track of. Getting out of debt isn’t easy and requires a lot of self-restraint. Here are some tips for breaking free from your creditors and living a debt-free life.

Stop borrowing

You’ll never get out of debt if you keep on borrowing money and adding to the burden. Too many owed debts can seriously damage your credit score and you may find that lenders aren’t willing to give you money anyway. That said, there are still some dodgy emergency loan lenders out there that will offer you money regardless of your credit score – the condition is that these loans have ridiculously high interest rates. Make a vow to not take out any more loans and cancel any credit cards you may have.  

Start making cutbacks

In order to pay off your debts more quickly, you’ll need to make massive cutbacks to your spending. The bigger these are, the more disposable income you’ll have to throw at your debts, helping you to get out of the red faster. You could try budgeting your food costs or quitting a bad habit such as smoking. You could drive less and cycle more so that you’re not spending as much on fuel. If possible, you could even try downsizing your home or moving to a cheaper location, that you’re paying less rent/mortgage.

Sell your clutter

Many of us have unused items in our home that we can sell for money. This could include clothes, old electronics or remnants of past hobbies. Selling a few items could give you extra money to pour into your debts. There are lots of website online dedicated to selling used items – selling to someone local might even prevent you having to pay for postage.

Consider debt relief programs

For serious debts, there are a number of programs that can help you get out. Some are catered to specific debts such as a student debt relief program. This may include consolidating all your debts into one monthly payment if you currently have to juggle multiple debts. Alternatively, you may be able to get a debt settlement. There’s even the option to declare yourself bankrupt, although this is generally the most extreme and self-destructive way to clear debt.

Negotiate with your creditors

In some cases, you may be able to reduce your debts by negotiating with creditors, especially in cases where you can no longer make each monthly payment. Your creditor may be able to reduce interest charges. Extending payment could help to reduce each monthly payment, but could prolong the time in which you spend paying off your debt, most likely collecting more interest in the long run – be careful when choosing this option.  

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