Tips to Get Out of Your Debt Problem

Being in debt is never a lot of fun. It can really drag you down, so you need to solve the problem as quickly as possible. It’s not as hard as you might imagine to get out of debt though, especially with programs like Freedom Debt Relief in place. If you put a plan in place and approach the problem in a logical and rational way, you can break free sooner rather than later.

The debt you have might seem insurmountable to you right now, but that need not always be the case. So, here is how you should climb your way out of that debt hole.

Write Everything Down

You should start start out by making sure that you understand all your debts. When you have lots of them, it’s very easy for them to spiral out of control. But if you don’t know how much you owe, who you owe it to and when the deadlines are, you will be in trouble. To get out of debt, you first of all have to be completely organized and in control.

So, you should start by going through all your papers and documents in order to get a handle on the situation. This will allow you to prioritize your debts. Write them all down and list the deadlines. Obviously, the ones whose deadlines are approaching soonest are the ones that you should focus on paying off first.

Set Repayment Goals

When you are paying off your debt, it’s good to have something concrete to aim for. Of course, everyone has the vague aim of having their debt repaid. But that is not really a solid goal, and it doesn’t really mean anything. You should set some short-term goals that you know will be possible to achieve. It’s something everyone should do.

Setting short-term goals like these will also help you to track your progress and success. You can measure how well you’re doing by seeing how often you hit your targets. If you’re constantly missing the goals that you set yourself, then you need to look at what you’re doing wrong. It might be that the goals are too tough, or you might not be pushing yourself hard enough.

Sell Some Valuable Items

It’s never been easier than it is today to sell your items and possessions. It can all be done online, and you can reach a global market at the click of a mouse. Online auction sites, such as eBay or Amazon Marketplace, allow you to list items for other people to buy. If you have any items that you don’t want any longer but could be worth some cash, why not sell them?

Selling items on the internet can be a little daunting if you’ve never done it before. But it’s relatively simple. You can set up a Paypal account to receive the money that people pay. And then you just need to set up an account and follow the onscreen instructions on how to list your items for sale. There’s nothing too difficult. And go to forbes.com to find some eBay selling tips.

Take On Extra Work

Many people turn down overtime and extra work when it is offered to them by their employers, but is this the right thing to do? To be honest, you should be looking for every possible way to maximize your income when you are trying to repay debts. The more money that there is coming into the home, the quicker you will be able to pay off those debts.

You could even get an extra part-time job if your employer can’t offer you any overtime at the moment. There are plenty of small jobs that you can do at the weekend or during the evenings. Even something simple, such as posting adverts through doors, can bring in some much-needed cash. So, think about how you can make some extra money.

Cut Down on Unnecessary Expenditure

If you are one of those people who spend lots of money on things that you don’t really want or need, then you need to cut down. It’s pretty much impossible to climb out of debt when you are spending frivolously. It’s much more sensible to abandon any luxury items that are not of any real use to you. You might have to get used to living frugally. 

You could even go as far as only spending money on items that you really need. This could then allow you to set a monthly spending limit that everyone in your household would stick to. Any extra money you save by cutting back could then be put towards paying off your existing debts. Surely, that can only be a good thing.

Consider a Consolidation Loan

If you are still struggling to get in control of your debts, a consolidation loan might help. This is something that is only really helpful to people who have lots of different debts owed to different creditors. A consolidation loan is one big loan that allows you to pay off all your other smaller ones.

There are many reasons why this is a good thing for people. It allows you to have one deadline and one monthly repayments as opposed to many different ones. You’ll be surprised by how much easier it is to manage one debt compares to lots of them that are coming at you from all angles. 

Cut Up Your Cards

If you are tempted to use your store and credit cards, then you need to resist that temptation. It’s not something that will be any good for. In fact, racking up debt on store cards will only make things worse. Far too many people think that buying items with store cards is liking getting stuff for free. But that’s not how it works at all, so don’t make the mistake.

You will have to pay for all the items that you buy eventually. And, if you haven’t learnt this by now, your debts will always manage to keep up with you. You can never run away from your debts for very long. So, if you ask me, there’s no point trying. Cut up those cards and then throw them in the bin. It might seem drastic, but it needs to be done.

Don’t Add to the Problem

When you are in debt, you don’t want to be adding to those debts. So, don’t be tempted to borrow money for other things. You’ll be surprised by how often people who are already in debt borrow even more money. This just compounds the debt and makes your long-term problem even worse than it already is. It’s a risk not worth taking, so don’t borrow!

If you really do need some money to deal with an emergency, you should look for alternatives. You could ask your close friends or family members to lend some money to you. You might not be totally comfortable doing this. But it could be the best way to tide you over without getting into further debt with banks and creditors.

Talk to Your Creditors

If you want to make sure that you clear your debts fast and without problems, you need to talk to your creditors. If you don’t talk to them, then they will never be able to understand your problems. Rather than just filing away letters from creditors in the drawer, let them know what’s going on. It might seem like a strange thing to say, but it could help.

At the end of the day, you and the creditor want the same thing. You want to pay off your debts, and they want you to pay off your debts. So, if you talk to them, they might be able to put a debt repayment plan in place. This can be a huge help for people who are really struggling to pay back that money.

Once You’re Out of Debt, Stay Out

When you finally get free from your debt problem, you need to keep it that way. Many people finally pay off all their debts and then simply go back and do the same thing again. That’s not what you should do though. Make sure that you learn from your mistakes, and never repeat them. As long as you stick to a long-term plan and remember the consequences of debt, you should be alright.

You should stay away from all forms of debt in the future. It’s much better to spend what you have. That way, you will know that there is no chance that you will get into debt the way you did previously. If you don’t borrow, then you can’t get into trouble. It’s a much better way to live, so give it a try once you are out of debt. It might be the best decision you ever make.

Now that you know how to get out of your debt problem, start putting these tips into action. There is no time to waste!