08 Dec “Your Debt Isn’t Your End”
Debt can be incredibly overwhelming. If you’ve ever experienced issues with debt then you know it has the ability to creep into multiple aspects of your life, eventually consuming all of your thoughts and becoming a major source of undue stress. If you know this feeling then you also know being in debt is nothing to joke about, but there is an answer. With some debt management assistance, your debt doesn’t have to be your end. So stop putting it off and deal with your debt today.
Here are 5 tips to get you started:
- Take the time to begin budgeting. We can’t stress enough how essential budgeting is to debt management. Without budgeting it’s nearly impossible to successfully minimise your debt and still live comfortably. You need an accurate representation of not only your total income but also your total expenditures. A great budget will help you assess how much you can afford to spend each month without stretching yourself too thin and it will also help you to determine how much you can pay towards your debt.
- Pay your bills immediately and automatically. There is no worse feeling then checking your mailbox and seeing nothing but bills, nonetheless you can’t just set them aside in the hopes that they will disappear. They won’t. You need to open your bills (all of them) figure out how much you owe, how much your minimum payment is and then ideally pay more than your minimum payment right away each month. When you put off paying your bills it’s more likely that you will forget to pay them all together incurring unnecessary late fees. Just pay them right away, if it’s possible, setting up automatic payments to be debited immediately from your bank account will minimise your risk of missing a payment and also take the monthly stress off of your shoulders, as your bank will handle paying for you.
- Minimise your high interest debt. Compare all of your credit cards and loans and determine which have the highest interest. They will all need to be paid off, but eliminating the highest interest debt will create a little breathing room. Prioritise it. You should also consider consolidating your debt into one low-interest rate loan. When you have debt you need to ensure you’re doing everything in your power to minimise unnecessarily high interest rates.
- Cut out the unnecessary. A great way to save money simply is to print out your latest bank statement and review your payments. Is there a service that you’re paying for monthly but haven’t used in the past 30 days? Whether it’s Netflix or a gym membership, if you’re not using it then cancel it now. Once you’ve cancelled everything you’re not using, allocate that money directly into paying one of your credit cards. Every small amount counts.
- Stop accumulating more debt. It’s not always easy but try to only purchase items that you can afford to pay for at the time of purchase. Once you’ve paid off the debt you have then you’ll have more financial freedom without having accumulated any additional debt. If you absolutely must put something on credit then be sure to use the cards with the lowest rate.
These five simple steps will help you manage your debt and gain control of your finances. Remember, the team at Isis is always able to help you gain the financial freedom you’ve dreamed of. For assistance with your finances don’t hesitate to contact our experienced team.
Do you know someone who’s struggling with debt? Share this article with them to help them lift debt from their shoulders!