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Tired of Debt? Kick it to the Curb and Take Control With These Tips

 

Tired of the sleepless nights, the dread when the postman knocks and being hounded by phone calls? Debt is scary and stressful, and when you’re dealing with it, it can feel like there’s no escape. Being in debt doesn’t just happen when you’re careless with money. Anyone can get down on their luck and end up with unexpected expenses. Housing issues, car problems or anything else that can lead to needing a line of credit. The problem is, these debts often spiral, and it can get to the stage where you’re only managing to pay off the interest each month without even taking a dent off of the actual amount. If you’re tired of dealing with debt, here are some of the ways you can kick it to the curb and take control.

Speak To Your Creditors

If you’re struggling or can’t pay at all, the best thing you can do is phone up your creditors and explain. While this can be scary, choosing to ignore the situation will end up with much scarier consequences. Many creditors will be sympathetic but either way, you have rights, and they can’t get blood out of a stone. If you can no longer meet your financial commitments, you can’t physically give them what you don’t have. Usually, you will come to an agreement which suits you both. Even if you have hardly anything to give, this will be in the form of a small ‘token payment.’ This can be accepted until you’re in a better financial situation, and can start making regular payments again.

Speak To a Debt Management Company

If talking directly to your creditors worries you- or if you have a lot of creditors- you could enlist the help of a debt management agency. You will pay a fee each month for this, but it means that everything is sorted out on your behalf. They speak to your creditors and agree on an amount that you can afford to pay. You then make one payment to them, who distribute it each month for you. Often they will work to get interest frozen too, so even small payments you make will count towards reducing the debt. Some charities also offer a similar service, so find out what’s available in your area.

Take out a Consolidation Loan

It’s worth noting that both of the above options will negatively impact your credit score. If that’s something you don’t want to do, a consolidation loan could be a better option. Consolidating all of your debts into one manageable payment makes it much easier to keep control of your finances. You’re likely to also save money since you won’t be paying interest rates on multiple cards or loans. Since there will still be interest that needs to be paid with something like this, you’ll need to do some research and work out exactly how much it will save you. But consolidation and the use of a payday consolidation loan could be a good way to get back on track providing it’s done right.

Reduce Your Spending

Finally, to really get a handle on your debt and take control- you have to stop overspending. Cut up any credit cards you have to stop you from spending back onto them. Then each time you make a payment, the overall debt is reducing rather than being constantly used again. Work out your monthly income and expenditures. That way you can see exactly where your money is going, which gives you much more control. From there you can aim to reduce anything that’s higher than it should be, for example you could phone up your bills and utilities to get the best deals. You will have to skip any luxuries or extras for a while in order to get your debt down. This could be anything from socializing to smoking to cable tv. But it’s so worth it to be debt free.