Getting into debt is extremely easy, but getting out of debt is far, far complicated. If you have found yourself facing debt problems which you are struggling to get out of then I wanted to share with you how I finally took action and managed to pay off my debts.
To give you a little background, I had been racking up debts since my late teens, it began with a credit card, then a second and when things got too much with the cards, I took out a personal loan to pay off my credit cards. My problem wasn’t so much the debts but the mismanagement of them, unpaid bills left me with high interest charges. I read a book by the great S R Buzzi and it changed the way I thought about debts entirely.
Getting Real
Ignoring debts, letters and phone calls from your creditors is only going to land you in more hot water and it is absolutely vital that you face up to the debts which you have. When you simply ignore your debts and fail to pau them, the creditors will only pursue you more, and potentially hit you with additional charges. The best way to get started in terms of getting out of your debt, is to work out how much you and who to, then start taking action.
Conversation
If you have mismanaged your debts or if your circumstances have changed leaving you unable to pay, you must speak to your creditors. In truth, it can be easy to think that speaking with this kind of stuff with creditors may be difficult but remember that they want their money back to, and that they will be inclined to make arrangements for you to help you to get your debts paid back.
Budget Wisely
There is absolutely no point in you thinking that you can pay $300 of debt repayments per month if you only earn $900 and your outgoings like rent and bills adds up to $600, this will leave you absolutely no money each month. In order to make a budget you need to be smart about what you are leaving for yourself. Nobody is saying that you shouldn’t have a life, but that you should live a frugal one and focus all of you efforts on getting your debts paid off.
Don’t Borrow
Most people are in difficulties with their debts because they borrow more money to pay off an old debt, this is a vicious cycle and one which needs to stop right now. The only option for you to take if you have not already exhausted the option, is to balance transfer any credit card debts which you may have and move them on to zero interest credit cards. With the exception of this option, you myst avoid borrowing altogether, take stock of the debt you have, and make sure that the only changes which occur are that the figure goes down.