How To Get out Of Debt And Stay Debt Free

Debt is a struggle for many people around the country and it is only getting worse with the cost of living at the moment. People are turning to apps like Klarna to do basic food shop. Between your basic living costs, loans for home, college, and cars, it is like fighting a losing battle. And then the extras and emergencies sneak up and take more money from you. There are so many reasons why can be difficult to make ends meet. In hard times credit cards are often used to help cover the extras, and then you find yourself in more debt. so I am going to give you some tips on how to get out of debt and hopefully stay debt free (for a while anyway).

If you are struggling to even pay your everyday bills and put food on the table, it is hard to find the extra money to pay the debts. So let’s look at some ways to help get them under control.

Face The Debts And Work Out How Much You Owe

Some people don’t know how much they actually owe. This is because they are scared to look at all of the debt letters and to count the debts up. It is a common thing and it is so easy to hide the bills under the sofa or in the bin. But the first step in getting out of debt is to face the debt.

Get a notebook so you can start to get out of debt, and make a list of what you owe. If you already pay some debts off, that is good. If you cannot afford to pay the amount that you are paying off, contact them and ask them to drop the cost of the payments. Debt companies will be happy to receive a few quid a week instead of nothing at all.

Contact the companies you do owe money to and ask them if they can set you up a payment plan. You will notice that they are really helpful on the phone. This is because they have to follow strict rules and regulations when they try to get debts back from you.

Also, make a list of your everyday bills that you have in your notebook. This way you can work out where you need to cut costs and where you can get rid of things you don’t need at all.

Stop Taking Out Credit And Using Credit Cards

You might find yourself in a sticky situation. You need to use credit cards because you have no money. But then you end up owing more money – with interest on top. so you need to cut them up and walk away from them. Even if you are using interest-free options to buy stuff, this needs to stop too. Because you are just creating more debt that you owe people.

Be Confident When You Face Your Debts

It takes a lot of confidence and guts to face your debts. Especially if you think they are so out of control and there is no way out. You need to get just a little bit of confidence to make that first phone call. Your heart will be beating so hard that it feels like it is coming out of your chest, but I promise you that you will feel better when you have done it.

Having the confidence to face your problems makes you feel so much better. And you can finally see the future for the first time in a long time.

Make A Plan To Get Out Of Debt

Sometimes it is all a bit overwhelming and you don’t know where to start with your debts. But if you make a plan, you can follow it and know where you are financially all of the time. Also create a budget within your plan, so you know how much you can keep for everyday needs and how much you can put away for debts. It is also good to have the plan to put a little money away every week for incidents and emergencies, so you don’t need to rely on credit cards again.

Look at your list of debts and work out how much you can pay from each debt, it might only be £2 a week but it is a small amount that the debt company are getting and it is more than they were getting a few weeks ago. If you can afford to pay more, then do so and it will get paid off faster. The debt company will want to increase your payments after a while, but if you cannot afford to increase them, then don’t. You still need to live within your means and if that means minimal debt payments then so be it.

You can also speak to someone from the CAB who will help you to sort the debts out, they will give you a shoulder to cry on and help you with your long time plan. If you have a plan in place it is so much easier to face your debts, understand them and sort them out.

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