No one enjoys being in debt. Debt can cause a lot of stress and negatively impact both your finances and your well-being. But there is light at the end of the tunnel. Just by reading this post you’ve taken a step in the right direction.
Debt isn’t always a problem and most people will have some form of debt, whether that’s a mortgage, a credit card or an overdraft. However, if a debt is left unpaid it has the potential to spiral out of control.
In this guide, we share our tips to keep your debt under control.
How to Pay Off Debts As Quick as Possible
What’s the best way to pay off debt?
A good first step is to look at which of your debts is most expensive; pay particular interest to how much you have left to repay and the interest rate. In most cases it may be best to prioritise high interest debts (as these will cost you more).
Choosing whether to pay off debt or save money is difficult but focusing on reducing debt would be my first aim (to minimise paying more interest).
The pros and cons of debt consolidation
A debt consolidation loan allows you to combine lots of different debts, meaning you owe a debt to just one lender and making it easier to manage. In addition to simplifying your finances, you should look for a debt consolidation that gives the borrower more favorable loan terms.
It’s worth remembering that consolidation will not eliminate the financial habits that got you into trouble in the first place.
Always take free debt advice when making a decision to take out one of these loans. Click here for more information on debt consolidation.
Five Steps to Pay Off Debts As Quick as Possible
1. Start with a plan
Taking a look at your current spending and creating a plan is a good first step. Understand where your money is going every month, and consider where you can start making cut backs. For each area of spending you manage to reduce you could set up a regular payment of the same amount towards your debt.
2. Consider a 0%-money-transfer credit card
A 0% money-transfer card deals allow you to shift a balance for a fee (typically around 3%), while the debt left on the card remains interest-free for as long as 18 months. This can buy you time to pay off your debt without it accumulating more debt through interest.
3. Check if you’re eligible for a free grant
If your household income is low there are various grants available that could help support you. You may be able to get help with paying utilities, keeping your home warm, or even grants for education. Turn2us has a useful charity grant search engine.
4. Lockdown your money
If you’re serious about paying off your debts it’s time to take control of your spending. Cancel unused subscriptions, remove your card details from online accounts, delete shopping apps and unsubscribing from newsletters that might tempt you to spend. Often if we have something to pay off we challenge ourselves to a no-spend week/month.
5. Boost your income
One of the quickest ways to pay off your debt? Earn more money and put it towards overpaying the debt. You could offer to work overtime at work, get an extra part time job or look for a side hustle. Completing surveys and taking part in market research are just a couple of ways you could boost your debt repayments.
Emotional support for people in debt
Struggling with debt can be overwhelming and our wellbeing can take a hit, but it’s important to remember that you’re not alone and there is support available.To get support visit one of the following trusted websites: