At one point in our life we are going to have some form of debt.The likelihood of you having some is going to be pretty high. From mortgages to paying off a car, debt will accrue somewhere in your life. Obviously you can’t just let debt pile up and you have to have a plan. Whether that is a plan to pay this off every month or a plan to clear it.

Borrow money

It seems counterproductive, but sometimes, to solve the debt, you need to take out a loan from somewhere that will help you get out of the current situation you’re in. When you accrue debt, there’s going to be some companies that charge an excessive amount of interest rate or fees that can make paying off the loan, more of an impossible challenge. Ideally, you want a loan that’s interest fee or one where you don’t pay any interest until a certain date. That way, you can pay off the debt with the loan and work about paying off that loan as quickly as possible. The more fees and charges you can save, the easier it’s going to be debt-free. Money supermarket are great to take a look and see whats on offer.

Putting your debt in one place

The reason debt builds is because you’re likely to have that debt in a lot of places. That’s why it’s good to put everything in one place. Pay it all off with the one credit card or loan so you know exactly how much you owe and the balance that’s remaining. Ideally, again, you want no fees attached to this debt, but as long as you have it all in one place, that’s definitely going to make it easier to pay it off eventually. If your debt is in multiple pots, then it’s easier to forget about them and allow them to accrue interest and also to miss payments is dangerous. Also places like Jayhawk advisors can help with this. They can prioritise what clients need by offering a single monthly payment with low interest rates.

Cut Back On Your Treats

Treats are something that makes life more enjoyable, and we all love to treat ourselves every now and then. It’s important to do it for your quality of life and for your mental health. However, too many treats and your bank balance is soon going to slip into the negative. It makes it worse if you have debt that you need to pay, yet you’re buying more things for yourself. Consider debt as money that isn’t yours and therefore needs paying back as soon as possible. You shouldn’t see it as anything other than someone else’s money. Otherwise, that can allow you to become more spend-happy with money you don’t really have.

Create A Pay Back Schedule

And finally, to keep your debt organized, you want to create a payback schedule. You need something to work towards so that you can get yourself to being debt-free as soon as possible. Work out a payment schedule that suits you, and that’s realistic and affordable. Be strict with yourself and treat that payment like any other bill you’d pay for each month. Creating a direct debit straight to the account you’re paying off would be beneficial. The debt advisory service have loads of ideas to help.

*Collaborative post

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