Get Rid Of Your Debts Once And For All

When you are in debt, it can become very overwhelming. We want to help you get rid of your debts once and for all so we have put the guide below to help you.

Now some debts are unavoidable such as a mortgage or a car loan but there are other debts that can be dealt with easily. We would advise forming a plan based on the tips below and sticking to it to get rid of your debts.

Make a list of everything you owe

This can be a daunting task but in order to make a plan to get rid of your debts, you must know how much you owe. Make a list of all your debts including your mortgage, vehicle loans, student loans and credit cards. Also, make note of your interest rate and monthly payments for these.

The total amount of debt you owe will be clearly listed and the absolute minimum amount you need to pay every month will also be clearly stated.

Ask yourself what you can afford to pay each month.

Like a monthly budget, list all your monthly expenses such as groceries, mobile phone bill, utilities, petrol, rent and entertainment. This will give you an approximate idea of your monthly expenses as these can vary month to month. Now compare this with your monthly income, and make sure this is your ‘take-home’ pay figure. Subtract these total expenses from your monthly income. If the amount you have left is less than the amount you need to pay off your debt then you need to look at other ways to cut back on your expenses and/or increase your income.

Look at reducing your credit card interest rates

When you are paying a lot of interest on a credit card balance, it can be difficult to pay off the principal. Firstly, ask you current credit card issuer for a lower rate. If you have a good payment history they may consider this. Secondly, consider a balance transfer credit card. You might be able to transfer outstanding credit card balances to a balance transfer card with a lower or zero interest rate. Thirdly, look into a debt consolidation loan.

Try to pay your bills on time each month

By doing this, it is the best thing for your credit rating. Setting up automatic payments or pay reminders can help you ensure you never miss a payment.

Remember that your hard work should not be undermined, so try not to take on any new debt during the period you are trying to pay your current debts. Avoid the temptation of a personal loan or balance transfer card to consolidate credit card debt unless you are sure you will not use the card once you’ve paid off the balance.

Sometimes trying to get rid of your debts can be overwhelming and you don’t know where to begin. Hopefully the above tips have helped and if not then please give us a call and we can look at your personal finances and circumstances and come up with a plan together. Please get in touch if you would like to discuss this further.

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