If you have found yourself in debt, it can be a struggle to find a way out. You have bills to pay, food to purchase, a social life to live. How will you ever save enough to pay that credit card debt off?
Here we’re going to look at five tips to help you clear that credit card debt and focus on the future.
Ditch the cards
To get out of debt you need to stop spending on the cards that got you there in the first place. Remove them from your wallet, cut them up, bury them in your backyard – just make sure you don’t use them again until you’ve paid them off completely.
Prioritise debts
If you have more than one credit card or outstanding loan, write down a list of each and every debt, and then get to work prioritising which one’s need paying off first.
The reasons for paying certain debts off first will be different for everyone. Some may want to lose their high-interest debts first; others may have payday loan debts they’ll want to cut off first.
Cut down on expenses
To find the finances to pay off your debt, you’ll have to review your current expenses. There are always opportunities to cut down costs. Do you pay a monthly subscription to a gym? Cancel it and start running. Pay for a fancy TV membership? Get rid of it and read more. Buy a coffee on the way to work every morning? Make it at home instead.
These small changes in your life soon add up, and you can save some serious money, helping your reduce debt.
Make a spending plan
Spending plans will help ensure that you don’t need to turn to a credit card to pay for something you need.
Let’s say you’re paid weekly. Workout how much you need to put away each week so that you can pay for all your bills. Then, whatever’s left over is yours to spend. You could even go one further and break that spending money down into a day by day plan.
Work bonuses/extra income
If you receive a bonus at work, or manage to get some extra work, put that money straight towards paying off your debt. This’ll help speed along the process, and doesn’t leave you short of cash you need to live.
Getting out of large debt is daunting. It takes time. But it is possible, just as long as you’re prepared to commit to sensible spending.
Good luck.