5 Ways To Get Out Of Debt Fast
Managing debt is like managing recalcitrant children. If you have understood your children well then you can manage them better. If you don’t understand them well then they trouble you in the short term and hurt themselves in the long run. Thus, the first lesson to manage debt is to understand what debt is and how it can affect your finances in the short term and also in the long term.
Follow these 5 tips and you may be well on the way to get out of the debt trap you have created for yourself.
1. Take stock of your debts
It pays to list down all your debts and tabulate them into several tables as follows:
- Chronological order of payment due dates table
- High to low payments due amounts table
- High APR to low APR table
- Dues on credit cards and credit unutilized table
These tables will help you get a total picture of your debts. You can now better appreciate your debt situation and make plans to streamline your debt repayments. If you run a balanced budget then you have nothing much to do other than ensure you are prompt in repayments without attracting penalties. If it is difficult to balance then you have to clear off the High APR debts first.
2. Use credit cards prudently
If credit cards are a major part of your debt situation then it is worthwhile to revisit all the credit card contracts you have entered into. You must make an analysis of your past credit card usage and see where you can improve. For instance, have you been paying the total amount due instead of the minimum amount due when you had the money to pay the total amount due? If you have multiple credit cards have you used the balance transfer facility? Have you utilized only 30 to 40% of your credit limit on each card? Have you been prompt in your repayments? If the answer to all the above is negative then you have missed out on the positive aspects of credit cards and succumbed to the negative aspects just as your recalcitrant children.
3. Control your expenditure
If you have been trigger happy with your purchases take immediate steps to control expenses that can be avoided. You must be harsh on yourself just as you would be harsh on your children when they indulge in a lot of mischief. Of course, this is easier said than done but dire situations require harsh measures and there is no better solution other earning more income than to cut off unnecessary expenditure.
4. Use your spare time more fruitfully
With debts troubling you, you can often slip into a lethargic state and while away your spare time playing games or simply spend time on your mobile phone. You could accomplish more if you do something more useful such as take online surveys. These surveys pay well in cash or kind and you can earn handsomely by doing these surveys for 2-3 hours every day. You kill two birds with one stone eh! You can look for other opportunities for using your spare time more profitably to earn more income.
5. Use a debt relief service
If after following the above tips for a few months your debt situation does not improve then it is time for you to use the services of an Accredited Debt Relief in California to help you assess your debt issues and suggest to you workable solutions which may include debt consolidation loans, negotiations with creditors for lower APRs, setting up debt settlement account and streamlining your financial system with counseling.
Don’t wait for an opportune time. Just start now and follow these tips and your debts can be reined in.