If you’re struggling to make any headway in your battle against debt, it can seem like a daunting task. However, if you take things one step at a time and work towards your goal month by month, there is no reason why you can’t become debt-free.
Below, debt solutions experts Creditfix, have outlined steps to take in order to work towards becoming debt free. Creditfix help thousands of people become debt free through providing information on everything from IVA Plans to Statute Barred Debt
Here are 5 top tips to help you work towards becoming debt free:
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Savings
Savings can be an additional source of income for paying off your debts or they can be a good way of stashing any spare money that you have until you’re ready to use it. Savings accounts do not come with high interest rates of return, but that’s not really the point of a savings account. Savings accounts are great for keeping money safe and out of sight until you want to use it, at which point you can transfer the money back onto your current account ready to pay off debts.
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Budgeting
Many people have problems sticking to a budget, but a budget is a great way of saving money every month and paying off your debts. A budget can be as simple or as complicated as you like – the important thing is to make it workable, so that you’re not constantly changing it or losing track of what you’re doing.
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Debt
The only way to get out of debt is to start paying off what you owe and continuing until the debt is paid in full. Not much else can be said about this and it’s fairly self-explanatory, but there are many ways you can pay off your debts:
– Make a one-off repayment on your credit cards, even if you have to borrow from another source
– Pay an initial lump sum onto your debts to get rid of interest charges and pay them off quicker
– Talk to your creditors and arrange a repayment plan, so you don’t have any interest charges
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Increase Your Income
There are several ways to increase your income if you want to start paying off your debts. One way is to arrange a meeting with you line manager and and ask for either a pay rise or promotion at work so that you can start bringing in more money.
Why not look into picking up a part-time job that can work around your primary role or even do some freelance work. There are a huge amount of sites that you can market your skills and easily pick some freelance jobs and opportunities.
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Cut Your Expenditure
You can also reduce your expenditure to help pay off your debts. Selling items that you no longer use and that can be sold for cash is a great way to boost your income. Along these same lines, you should look into cancelling subscriptions, memberships and services you no longer need and/or use.
Another great way to cut your expenditure is to start cooking at home more than you’re maybe used to. Eating out is one of the biggest expenses for most individuals and families.
Becoming debt free can seem like a daunting task, but if you take it one step at a time and follow the advice in this blog post, you’ll be on your way. Start by creating a budget that works for you and sticking to it. Make use of your savings to pay down your debt as quickly as possible. And lastly, try to increase your income and decrease your expenditure.
