There are few things more stressful than being in debt. Owing money and watching the interest creep up makes everyone feel anxious and can start to have an impact on every part of your life. If you’re in debt and it’s beginning to be a worry, then read on for some tips about how to successfully start decreasing your debt.
Make a budget.
Start by listing everything you owe. This is one of the most difficult parts, as many of us feel guilty about having debt in the first place and try not to look at it as much as possible. But, if your loans and bills are mounting, then ignoring the problem isn’t going to make it go away. Be honest with yourself, sit down and draw up a list of everything you owe and then make a budget for your monthly expenditures.
Be honest about paying things back.
Once you’ve made your budget, and worked out what you have leftover each month after paying your non-debt bills i.e. groceries, entertainment, gas, then you should have a clearer idea of how much you can afford to pay off your debts each month. If this amount isn’t enough to pay them back, or is only enough to pay off the interest, meaning that you’ll never touch the actual debt, then you need to think about other options. What are your opportunities to save? Could you consider a debt consolidation loan? Take these options under advisement.
Save money where you can.
If there are at home solutions, and things that you can DIY without spending a ton of cash, then have a look into them. From making your own lunches to mixing up cleaning solutions, if you think about it, you’ll find some areas you can save money on a daily basis. Are there subscriptions that you just aren’t using? Lots of us have a few dollars here and there disappearing from our bank accounts, so have a look at your statement to check if there’s anything you can cut back on.
Spend money to save money.
There are some things that are worth spending money on, for example if you’re seeking advice about disorderly conduct laws, or looking for someone to do some maintenance for you. So, in some cases, it is worth spending a bit of money to get a professional service that you need. Make sure you do your research though, to make sure you aren’t spending more than you need to.
Make more money.
If your monthly paycheck isn’t covering things, then it might be time to look into ways that you can make a bit more money to go into paying off your debt. One great way of bringing in a bit of extra cash is to become a tutor. You can work from the comfort of your own home, fit hours around your own schedule, and bring in some extra dollars. You can teach any age, so you don’t even necessarily have to be good with kids to make this work for you.