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Tips to Reduce Your Debt

27 April 2017 No Comment

Financial debt is something that can keep you up at night. It’s hard to face when you have so much debt that you don’t know how you’ll repay it. It would be easy to just bury your head in the sand but that certainly won’t solve the problem. When it comes to debt, there’s only one way to find a solution – look it dead in the eye. Whether you’ve made some poor choices or you’ve had a change in your circumstances, it doesn’t mean the problem can’t be solved. Here are some tips on reducing your debt and getting back on track.

Figure Out How Much You Owe

It isn’t a nice job and it can make you feel worse than when you started. Seeing exactly how much debt you’re in on paper can make it seem like a hopeless case, but remember it’s just the beginning. You need to know what you have to repay in order to know the best way of repaying it. It’s important to make a note of all the interest rates on credit cards and loans too. You’ll want to tackle the one with the highest rate first. That will free up a significant amount of money per month.

What Can You Pay

Once you know how much debt you have to repay, figure out how much money you can devote to paying it off per month. Write to each of your lenders and explain your situation. If you’re unable to pay the minimum amount per month that they ask of you, offer an amount that you are able to pay. In the meantime, you may want to consider ways of cutting back to save more money. You can do this by cancelling subscriptions to channels and TV packages, riding or walking to work instead of driving and cutting down on any luxuries.

Making Extra Money

Think of it as a temporary thing that will make your quality of life much better. There are lots of different ways you can earn extra money. For example, online surveys. They can be time consuming but you can earn anything between $2 and $50 a time. You can learn more here. If that isn’t suitable for you, you may want to consider taking an evening job, like a delivery driver for a take-away restaurant. You can also go through any of your unwanted items that might be worth money and sell them on sites like Ebay. It all adds up!

Set Goals

You know how much you can afford to pay back currently, but how much would you like to pay back? Set realistic goals for yourself and work towards them. It’s wise to have those goals in front of you every day, so make a list and stick it on your fridge. The reminder of why you’re working so hard will keep you going.

You’ll soon start to see progress and it will spur you on to get rid of those final payments. Good luck!

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