Getting Out Of Debt
Given that it was really easy to get credit for a good number of years, it is easy to see why so many people are currently struggling with debt. No one was forced into taking credit, which means that the ultimate responsibility lies with each individual and family, but there is definitely a lot of sympathy or understanding about the debt levels across the country.
However, just because there are many people in debt doesn’t mean that you should just accept debt as a way of life. If you are looking to make the most of your life, you’ll find that there are steps you can take to improve your finances. Getting out of debt is difficult but it isn’t impossible.
Be thorough in listing your debts
If you are looking to get out of debt, you need to know what sort of debt you have. This means that you need to list all of the debts that you have to deal with but you should also be looking to list the relevant APRs of the individual debts and the dates that they have to be repaid every month. You need to feel as though you know your debt inside out because you want to obliterate it from your life.
There is no sense in being “wishy-washy” when it comes to dealing with debt. Debt isn’t your friend, it is an enemy and you need to treat it as such. Knowing everything that you can about your debt will provide you with the best way forward in dealing with your debt and moving clear of this troubling time in your life.
Set reachable goals at periodic intervals
While the majority of people who set out to clear debt from their life do so with good intentions, many people struggle. Some people don’t have the discipline to deal with debt but a big issue that many people have is that they don’t give themselves periodic goals. If your only aim is to be 100% free of debt, you may feel that this is an impossible journey that you will never reach the end destination.
This can be disheartening and this is the sort of situation that causes people to miss out on meeting their aims. If you are looking to remain optimistic about meeting your goals, you should give yourself smaller goals that can be reached. Rather than looking at the big picture and the ultimate end goal, break your aims down and look to reach a lot of similar goals.
If your debt was a marathon and clearing off all of your debt came at the 26 mile marker, you may think that you can’t do it so there is no point in starting. However, if you look at your debt in a different way, with worthwhile goals at every mile marker, you suddenly find that you have more motivation for sticking to the task. With each milestone providing you with a benefit and something work celebrating, you’ll be better equipped to work towards clearing off your debt.
Focus on the highest APRs first
If you followed the earlier step of knowing everything about your debt, you’ll find this step easy to follow and it can make a difference. Not all of your debts are the same and if you have two loans of a comparable amount, paying off the loan with the higher level of APR will pay off.
This is because this loan is more expensive and if it is allowed to run, you’ll pay more in servicing it. However, if you can attack this loan or debt quicker or more effectively, you can remove the debt and then find that dealing with other debts is a simpler process.
Can you downsize elements of your life?
This may not be something that too many people want to think about when it comes to their life but do you need to spend all of the money you currently spend? It may be that you can downsize certain aspects of your life and still have a fantastic time. It may be that you can sell off some items from your home or which are in your belongings, which will help you bring more money in.
It makes sense to review your life and if you can find ways to save money without causing too much discomfort, you should do so.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.