Debt Too Much? Take Back Control

Debt is just like many other things. It’s like eating fast food or drinking alcohol. A little of it is fine. Indeed, some might even argue that it’s not bad for you. After all, how can you build up a credit score without at least incurring some debt? However, it can quickly spiral out of control, becoming a weight around your neck that just gets heavier and heavier, dragging your carefully planned household finances down with it. 

If you feel that your debts are getting to be too much, and taking up more and more of your monthly expenses, it’s vital that you remember one thing… you are not powerless! As tempting and understandable as it may be to bury your head in the sand and keep paying off the minimum every month, this will only prolong and perpetuate your debt, and leave you vulnerable to aggressive action from debt collectors.

It’s vital that you remember you are not powerless and you can take control of your household debts. Here are some tips to help you take back your life...

Play “hot potato” with credit card debt

Credit cards can be a useful resource when it comes to paying of the expenses life throws our way like car trouble or a leaky refrigerator. However, when we leave credit card debt to its own devices, it can spiral out of control as interest rates fluctuate.

Make you keep moving your debts to new cards with lower (or in some cases 0%) interest. While you may have to pay a fee, it will pale in comparison to what you save.

Consolidate multiple debts to make them easier to manage

It can be extremely hard to manage your finances when you have multiple debts leaving your bank account on different days and all with varying rates of interest. You may find your debts easier to manage if you consolidate them all into a single affordable monthly payment.

Hustle, hustle hustle!

Whatever you do for a living and wherever your skills and passions lie, if you have a few hours of free time every week, why not dedicate them to a side hustle? The gig economy has helped many improve their financial lot and turn their free time into disposable income. A side hustle such as teaching with these accredited TEFL courses could help make your monthly repayments more manageable.

If things are getting really bad, could selling your home be the answer?

While it may be an extreme solution, many have obliterated their debts using equity on their home. House prices rose across the board in the summer of 2019 and there are a wealth of home buyers who will pay you in cash for your property virtually instantly. If you’ve been thinking of moving anyway, it might just give you the freedom you’ve longed for.

Get back into the habit of budgeting

Finally, part of managing debts is ensuring that you won’t be adding to them with yet more debt. And that means re-acquainting yourself with budgeting. You may think you have a comprehensive budget because you’ve accounted for the broad strikes. But it’s easy to overlook the little things that can add up to a big difference. A latte here and a candy bar there can quickly put a sizable dent in your budget.