Once you get yourself in a major debt, there is no turning back. And even though your financial situation might overwhelm you, you need to be methodical in approaching debt relief. It is one step to strive for a way to get out of debt but staying out of debt is often the more difficult part.
Follow this step by step guide to get fast debt relief and help you stay debt-free for good:
Step 1: Write down all of your debts and interest rates.
This might seem like an obvious first step but it is surprising how many individuals who suffer from a lot of debt do not do this! Write down your debt in a piece of paper or make a spreadsheet on your computer. It is easy to track down how much debt you need to pay back when you can see them visually. Moreover, you will be more motivated to check some debt off your list when you can see them and get them organized. And the most important thing of all, when you write down your debt, it is easier to avoid late payments.
Step 2: Set goals.
Now that you know how much money you owe, you can set a goal on how and when you will repay all of them. When setting a goal, stay realistic. You do not want to cause more frustration when you put yourself up against an unrealistic standard. If possible, set aside as much money as you can from your monthly earnings and use it to pay off your debts. Also, do not settle for making minimum payments. Put in as much as you can afford without risking getting into more debts. And as a golden rule, do not borrow money to pay off your debts.
Step 3: Prioritize debts with the highest interest rates.
In some cases, it is difficult to juggle repayment of debts. Professional debt relief help would suggest paying off those debts with the highest interest rates. The longer you let the debt grow, the higher the interest you will be paying! Hence, it only makes sense to put them on top of your priority list.
Step 4: Make use of windfall money.
Did you get a bonus? Or did you get a commission for a sale at the job? Take that extra money that did not come from your regular paycheck and use it to pay off your debt. By paying off your debt as a priority, you will significantly reduce the amount of time it takes to pay your debt and the sooner you can live debt-free. It is a small sacrifice to make with a huge payout in the end.
Step 5: Sell unused items at home.
Do you have any items sitting around at home that you no longer use? Do you think someone will find this item of value? If you said yes to both questions, you can make money off of those items and add to the money you can use for paying off debts.
Don’t wait any longer to get debt relief with Debt Helpline. Have a consultation with a debt expert and find out how you can reverse your financial situation. For more details or to get started on your debt consultation, visit http://www.debthelpline.com.au/.