5 Tips to Cut Debt Quickly
Life with debt is a painful reality for a lot of us. The financial strain of owing someone money is bad enough, but add to that the emotional distress, and it’s no wonder people are eager to get debt free as fast as possible.
Whilst there’s no one-size-fits-all approach to getting back in the black, there are simple steps you can take to drastically improve your situation. That said, here are some tips to help you see a marked reduction in your debts, and take back control.
Budget and cut
Understanding where your money is going should be step one. Drawing up a detailed budget is the easiest way to spot needless drains on your income. Identifying these, and making the necessary cutbacks will free up extra cash to pay off your creditors.
Don’t add to it
Once you’ve got a budget drawn up, you should know how much surplus cash you have to work with. Wherever possible, leave the credit card at home, and stick to spending within your means. This should allow you to meet all your minimum monthly repayments, thus avoiding a further hike in debts.
When you owe money to several creditors at once, it can be tempting to try and eke out whatever dribs and drabs of cash you have evenly. The truth is, some debts are more pressing than others. List them in order of importance, taking into account factors like interest rates, late fees, final warnings, and so on. Making your way through this list, really knuckling down on them one-at-a-time, can result in more effective reductions overall.
Take out a Trust Deed
If you want something that feels a little more formal and secure, seeking help from somewhere like Trust Deed Scotland could be the perfect solution. A Trust Deed is essentially an agreement between you and your creditors to pay back what you can realistically afford each month. If you stick to the terms, any outstanding unsecured debt will be written off at the end of the contract. The structure this approach offers can be a huge help for those feeling overwhelmed.
This could be taken in a literal sense: moving to cheaper accommodation, flat sharing, or returning to the family home whilst you get back on your feet. Alternatively, it could mean a clear-out of unwanted stuff. Just think how much value lies in all the un-worn clothes clogging up your wardrobe, not to mention the discarded gadgets or unloved furniture. They say a tidy house equals a tidy mind, and if selling old belongings also brings in some fast cash, all the better!