10 Tips to Get Out of Debt Fast
If life was predictable, it would be boring. Sadly, excitement comes with both ups and downs that add spice to life. Sometimes you’re rolling free and living within your means and other times you get into a bit of a mess with your finances.
Everyone knows what being in debt feels like, all of a sudden you have no control and all you have left is bills piling up. To help with your finances we have got 10 tips to get out of debt fast. And if you feel like you have tried everything and still need help, apply for a debt consolidation loan and we can help you get back on track fast.
Overview:
- Do up a budget
- What are your immediate problems?
- Cut back on fun
- Try to switch to cash instead of credit as a method of payment
- Shop carefully
- Utilise direct credit
- Sell what you don’t need
- Do you really need to live where you do?
- Consider negotiating repayment plans with your creditors
- Consider a debt consolidation loan to minimise your debts
10 Tips to Get Out of Debt Fast
1. Do up a budget
Think carefully and realistically how you spend your money and where. Look at how you could spend your money wisely without life being boring and stressful. If you are trying to get out of debt, it may help to take it slow and spend less money for a few months or even a year to drag yourself out of it.
Focus on sorting out your weekly budget immediately. Write out your income, then write out your bills, groceries, savings and entertainment each week. Do some maths and work out how much you spend in each section. Is it less than your income or more? What can you cut out or spend less on? It may help to get a debt consolidation loan to keep a roof over your head or your car on the road.
2. What are your immediate problems?
Are you behind on essential payments? If you are making ends meet (just about) then you need to think about what the highest interest debts are. Credit cards are usually the most expensive debts you have – repay those as quickly as possible. After that, you can focus on the less pressing issues such as overdraft fees and then any lower interest debts.
A tip for staying on top of important payments is as soon as your paycheck comes in use some of that to pay off your credit card or immediately pay rent. Pay off the essential payments as soon as possible, and get out of debt fast by making all the important payments your priority.
3. Cut back on fun
Fun is an elective, a roof over your head is compulsory.
What subscriptions do you have online and for TV, the gym etc? Look at ways to cut back on subscriptions and get out of debt fast by doing home equivalents of subscriptions and unnecessary payments.
By only using one TV subscription, walking more outside instead of the gym and making home coffees and lunches instead of paying at work you could be saving a lot of money that can go to more important payments. Check out another blog of ours, which can provide you with some easy home to work lunches.
4. Try to switch to cash instead of credit as a method of payment
Ultimately, in using credit you’re paying someone else for the privilege of making ends meet. As you can probably appreciate right now interest repayments soon mount up yet cash costs nothing.
5. Shop carefully
Who cares if your friends and neighbours gossip about you if you eat supermarket cornflakes or don’t have the latest iPhone? After all, debt ultimately comes from spending more money than you actually have. Try to be careful about what you are spending your money on.
Even when you do need something like a new phone, set up a plan. Tell yourself that once you have saved a certain amount or paid off a particular debt, then you can buy a new phone . You can still shop just be diligent with your budget and think carefully about what you’re buying before you head to the register.
6. Utilise direct debit
If possible, have your employer pay you by direct deposit and have your essential bills paid by direct debit. You can, therefore, let the essential payments go in and out of your account without worrying too much about due dates and so on.
7. Sell what you don’t need
Auction sites such as eBay are very good for making a few bucks on goods you really don’t need. You’d be surprised at how much value someone may place on something gathering dust in your cupboard or wardrobe.
Also, consider a cell phone recycling website such as Mazuma at the end of your contract. These can pay quite reasonable money for something you’ll never use again.
8. Do you really need to live where you do?
Rents are rocketing in some cities, and you really shouldn’t pay more than 33% of your monthly income on mortgage or rent. If you have taken a pay cut or your landlord has written to you telling you your rent is going up, the simplest way to be free from debt is to think about moving to a more affordable place.
9. Consider negotiating repayment plans with your creditors
Lenders prefer to be paid their debts more slowly than have to chase you for every cent you owe them every month. While your credit score may be impacted, it may pay in the longer term to let that take a hit rather than being chased by insistent creditors all the time. You’d be surprised at how willing creditors are to help in these situations as ultimately they just want their money back.
Show them your budget (see #1 above) and show exactly what you can repay against the debt you owe. In some circumstances they may even consider suspending interest – though this will have a big impact on your credit score so think carefully before asking for it.
10. Consider a debt consolidation loan to minimise your debts
If you are clearing everything off in one hit over a few months then the debt consolidation loan may help. It will allow you to knuckle down and pay things quickly. Then after a few months, you can enjoy being debt-free! Debt consolidation loans can really help in these situations. You can also avoid late payment fees on your credit card debts by having a zero balance.
Thinking a debt consolidation loan might be the way to go? Swoosh has you covered!
Hopefully these tips to get out of debt fast have given you some insight into how you can fix your finances and start saving instead of spending. If you want to get the ball rolling, check out our debt consolidation loan option and pay off your debts quicker.
With our quick and easy online application process, apply now and you can get some extra cash to cover your expenses very soon.
