There Is An Easier Way to Get Out of Debt
While access to credit can be extremely helpful, sometimes necessary, and certainly a possible element in a healthy financial management plan, it also poses some risk. If not carefully managed, when faced with an unexpected large expense, or during challenging economic times as we are currently experiencing, a person can easily spiral into a debt trap that can be very hard to get out of.
Now, it’s also important to note that there are varying levels of indebtedness. Some levels can be addressed through tightening up your budget and tackling your credit in logical, incremental bits. Other levels require more immediate and decisive action. Whatever level you find yourself on, you have to realise that it more often than not takes time to get out of debt. It will require patience and perseverance, at a time where you may feel you’ve already run out of these. But there is a way.
Here are five things you can start doing immediately to help you to get out of debt:
1. Start small, win big
If you’re not spiralling out of control, but never seem to be able to quite get out of debt either, you may simply need some structure and focus. Make a list of all the credit repayments that you want to eliminate. Put them in order of the smallest outstanding amount to the largest. Now, start with the smallest one and focus on paying this off completely. This might mean channelling any additional money you can into this debt until it is paid off. Then, move to the next. Carry on until you have tackled all of them.
2. Cut the costliest credit
If your credit is more pressing than this, see which account costs you the most in terms of account fees and interest. Then focus all your attention on this credit first. Not only will you chip away at your debt, but your monthly budget will feel the difference sooner due to the decrease in interest fees.
3. Tighten the taps
Sometimes we live beyond our means, and we have to find ways to tighten the budget. This might mean getting a cheaper phone, being more frugal when shopping, or cutting the satellite subscription for a while. Use the money you save to tackle the outstanding credit.
4. The money maker
If you have the time and the capacity, consider getting a side hustle or second job to earn some extra money that you can commit to your credit every month. Alternatively, sell your car or downsize your home to free up some cash.
5. Download the FreeMi app
FreeMi helps you manage your financial health effortlessly in one place. We help you understand your finances better to make smarter choices, by analysing your finances and assisting you in getting financially free sooner and cheaper. Best of all? You don’t have to call us or visit our offices. You get help from the comfort of your home with complete anonymity. Simply download our app to get started.
Put yourself on track to get out of debt and take back your financial freedom. Download the FreeMi app right away to get started, or contact us via our website to find out more.