Is Your Debt Ruining Your Life? Here Is What You Can Do
Debt can become overwhelming to the point that it can begin crushing your life. You could begin to develop the impression that you are drowning in debt and wonder whether there is a way out of the problem you are dealing with. Fortunately, there is a way out of debt which is easily available to you if you are prepared to challenge the problem head-on.
The path to financial freedom is challenging and is definitely not easy. It will take plenty of discipline on your part to pay down debt, curtail your expenditure and most importantly begin learning to save. You will not have the option of trying these factors one at a time because it will take a concerted effort from you to stop your debt ruining your life. What can you do to stop debt ruining your life?
Evaluate your finances
The most important thing you should be doing is getting a clear understanding of your finances. How much debt are you dealing with presently and what is your debt to income ratio?
Getting an understanding of your financial status will help you to determine whether things can be rectified or you need to contact a bankruptcy attorney if matters have gotten out of control.
What’s your affordability
Understanding your money is going is also essential because it is the best way to cut back on expenses. If you need to begin trimming your expenses you should be considering the items that are not adding value to your life. Services like satellite television, and a smartphone or not essential commodities of life and giving them up for some days may make it seem that you are living life without any luxuries but it will make it possible for you to save up to $250 or more a month. You can use this money to pay down your debt.
Create a payoff cycle
Financial experts have recommended that it is always beneficial paying off debts which have the highest interest rates first while some have mentioned that the accounts with the largest balance should be paid before the others. We recommend paying off the accounts with the smallest balances because it will seem as a victory and can motivate you as you begin noticing fewer accounts that need to be paid.
After you have paid off one small account use the money from that account to clear another small account. Over a period of time, it will become possible for you to pay off all your debt if you decide to use this method. Keep a close watch on your credit card statements because you will be able to see the difference in the speed at which it was possible for you to become debt free. If you can make more than the minimum payments every month the speed will increase significantly and leave you in a debt-free situation within a short while.
Begin saving money
People who are caught in a debt situation often stop saving money which is a habit they should never be considering. Saving $25 a month may not seem like a huge amount but will save $600 at the end of the year and the money in the savings account can be used as a backup whenever you come across any emergencies that would normally have been placed on your credit card.
If all methods fail and your debt situation is going out of control causing you to miss mortgage payments by several months you have the option of contacting a bankruptcy attorney. You must, however, remember that bankruptcy laws vary by state and therefore you may be required to pay a certain percentage of your debt back to your creditors. You can use these tips for the assistance you need to get started with your new life to ensure debt ruining your life is a thing of the past.
More in Debt
Elon Musk’s New Compensation Package is Not For the Faint-Hearted
It is undeniable that the last few years have been great for Elon Musk. In the last year alone, the Chief...June 22, 2017
Jamie Oliver’s Italian Restaurant Empire is Neck-Deep in Debt—Exactly How Much Will Shock You
Jamie Oliver is quite literally a household name in such that millions of households around the world carry his bestselling cookbooks,...June 22, 2017
How to Run a Successful Crowdfunding Campaign
When it comes to acquiring funds for a new business or a project, there’s nothing more optimistic and earnest than crowdfunding....June 22, 2017
Is Your Partner Worth Marrying?
Sad to say, marriages, these days, are no longer the happily-ever-after deal as they were, say, a hundred years ago. Thanks...June 22, 2017
The Best Way for Small, Family-Owned Businesses and Franchises to Make Money and Improve Cash Flow
Quarterly surveys demonstrate that business conditions and confidence have been slightly improving. However, it also showed that there is a long...June 22, 2017
It’s Time For Small Businesses To Explore Alternative Funding Like Crowdsourcing and Debtor Finance
The World Bank revealed in 2010 that Australia is the second easiest country in which to start a business. Second only to...June 22, 2017
How to Break Up with Somebody in Your Carpool
A carpool is a great way to get around, especially in a metropolitan city. Mostly, when you carpool, you will be...June 22, 2017
How Giving Up Social Media Can Let You Live Your Best Life
These days, it is not uncommon for people to have their faces practically glued to their phones for hours on end,...June 22, 2017
These are the World’s Richest Tech Billionaires—And None of Them are Over 40!
There really is no sense in denying it—technology is here to stay. It is evident in our ubiquitous gadgets loaded with...June 22, 2017