Getting out of debt
There might be a solution for you if you have run yourself into multiple open loans and just don’t know how to start paying off the debt so you can fix your finances and move on with life. It could be that you have always wanted to own your own home but just can’t get yourself to pay your debt let alone save a deposit for a house.
You might feel like your just sinking in a pile of debt and it just keeps getting worse. If your in a habit of just running another credit card in debt, opening another loan to fund a car, home or even home goods, you should seek financial assistance. The idea is that your in this situation because of the lifestyle you have adapted, meaning you will need to change it for circumstances to change. This ultimately means, stop spending right now even if it takes a little sacrifice.
It might be that you need to reconsider the following to assist in your situation:
- Less expensive hobbies
- Less go out dinners
- Less drinking nights and alcohol
- Quitting drug habits and smoke less if your a smoker
- Save on transport (Walking, bicycle or a cheaper alternative)
- Try and choose a cheaper alternative when shopping for groceries and food
- Stay simple with clothing and accessories for the meantime
The average spending for a single living person in Australia is $869. Suppose you were spending the average and worked on saving only 20% on your weekly spend, you now have an additional $173.80 that you weren’t going to have. This money can go straight to paying off your debt.
You could also get an additional side-job just until you’ve paid off your debt temporarily even if its only a couple of hundred dollars a week. If you don’t have a job at all, then you really shouldn’t be raising any level of debt at all. Just do your best to stop making the matter worse by borrowing of lenders, family or friends.
The next thing you need to do is look at how you can pay off the several loans in a progressive way. If you can manage putting forward just enough to cover the interest on each loan plus a little more to pay it off, then your getting somewhere. If your paying any less, then the owing amount isn’t going to go anywhere. If you just want to clear everything up by getting all your little loans and putting them all together into one big loan, then you have debt consolidation.
There are a number of services in Australia that can help you with debt consolidation including:
- debt relief
- debt helpline
Make sure you do your homework to find which has the better rate, less fees and lowest interest to make sure your getting a good deal and no surprises. It is always advised that you seek professional financial advice before making a decision to choose a debt consolidator.
The last thing to do to encourage the fact that your paying off your debt is spoil yourself with something small every time you make a monthly payment on time. This doesn’t mean you go and put all your hard work to waste, but you deserve a little reward to encourage a positively oriented financial lifestyle. Just make sure its only a partial amount of the payment you have made. You could have made a $400 monthly payment and spend only 10% of this amount on yourself, so you would buy something for $40 as a gift for yourself.