Being in debt and struggling to manage your money is not fun, it is difficult and depressing. However, your debt is not forever, you might need to make your budget stretch further, or find a second job!
There are ways to reduce the debt, you just might need to step outside the box and tighten up your spending!
I just want to say thank you to Cash Lady for working with me on this post! As always, all opinions are 100% my own!
Debt is something that many people use for most of their adult lives, it’s an acceptable part of society, but you don’t have to follow this trend!
Sometimes You Find Yourself In Debt
Debt can happen without planning, an emergency happens and the only solution is opting for a loan or using your credit card!
This causes chaos in your life, quickly turning into a whirlwind of owing money and paying high amounts of your income on interest payments!
Having a negative impact on the money you have available to spend each month!
How To Get Out Of Debt
Getting out of debt is possible, but it will take some self-control and some serious budgeting on your part!
Making a budget, only then will you know what money you have to spend on food and groceries and how much you need to pay your bills.
You see the money you have coming into your home and the money that goes out.
You can physically see the money you have to use and the amount of money which you need to pay your debts and other living expenses.
Creating The Right Budget
There is more to a budget than writing down a list of numbers!
Working out the money you have coming in and the bills you need to pay is just one aspect of budgeting! You also need to pay for the incidentals during the month too, this includes your groceries and any other spending you do!
Having a set amount of money that you can spend on food and groceries for the week or the month is key to having money at the end of the month too!
You might have to make the money spread further, or cut back on some of the luxuries. But it will be worth it in the end!
Learn How To Reduce Spending
Knowing the pricing structure at local supermarkets is key to your success!
It is about getting the items you need at the lowest prices. I love Aldi, they keep their costs down and provide a great variety of fresh food that is reasonably priced.
Learning to cut back could simply mean taking a shopping list with you when you shop or, using cash instead of a debit card!
Track the prices of some of the more expensive items that you buy, typically, supermarkets cut prices on items in different categories in a particular pattern, your task is to work out this pattern to get the products you need at the lowest price possible.
Increase Your Income
If you know that there is no way your income will cover your expenses it might be time to consider increasing your income by getting another job!
Finding ways to increase your monthly income will help make your budgeting efforts!
- 2nd job in the evenings to increase your income
- A side hustle, this is often when you work for yourself to gain an income, it could be blogging, or even turning your hobby into a business to make extra money!
- Selling off those items around your home that you don’t like or need!
Taking Ownership Of Your Debt
Knowing just how much you owe is important; it allows you to face the debt you owe, often this is a very difficult concept.
Once you have accepted the position you are in, it is easier to move forward and to find ways in which you can take back control of your money and work your way out of debt.
Improve Your Credit
Having poor credit can affect all aspects of your life from your job to your home!
So, while you are reducing the amount of debt that you owe you are improving your own credit long-term and this is always positive!
One option you might not have considered is loans for bad credit! If you are in need of extra money then borrowing responsibly is an option to improve your credit score!
The idea behind this is to borrow money to improve your credit rating over the period of the loan by repaying on time.
This information is then fed to the credit rating companies, there are a few of them, that will then improve your credit and the possibilities of improving your living conditions and even helping you with getting a better job!
How To Pay Off Debt Fast
How you pay your debt and how determined you are to see the back of credit companies will determine how quickly you tackle the debt!
The more focused you are, the more determined you will be to put that extra effort in to find the money and to cut back in all the other areas!
One great method is the snowball method, this option, you pay the minimum on all but one debt! This one debt you choose to pay more towards every month until it is paid!
Then add this money to the next debt continuing to pay off all your debt!
How To Pay Off Debt With No Money
When you have no extra money you might think it is impossible to pay money towards your debt.
You have two options here:
- Get another job to increase your income
- Work out where you can cut back to pay money towards your debt!
Debt is not something you have to live with!
It is possible to live a debt free life, it just takes hard work and commitment to ensure that the money you have coming into your home works as hard as possible for you and not a credit company.