Pay off Your Debt by Facing Debt Head On.
Get Help to Pay off Your Debt; Start Today!
Knowing where you stand in the world financially is a first step to debt rehabilitation and then you can make a determined decision to pay off your debt the sensible way. If you are overloaded with debt you are in a prison of your own making and that includes never being free of having to work for a boss because you NEED the money to service your debt.
Taking some time to firstly analyze your current financial circumstances is a strong beginning, and once you know exactly what the position is then you need to share the information with your family. This way no one will have a false impression of how things really are and you can also let everyone know you plan to pay off your debt and become financially free for a better quality of life.
Most people are facing debt challenges that include:
- They end up owing owe more money than they earn and even own in assets.
- They are reckless in spending more than they earn every month.
- They suffer every month in budgets where more than 50 percent of their total income goes towards paying debt in the form of loans, credit cards and store cards debt.
- Did you know that up to 25%of your income is spent servicing interest on your debts?
- At some time or another it will happen that your bills will end up being up to three months in arrears when unforeseen expenses crop up?
- They have to decide which debt you are going to pay each month because you cannot manage to pay all of them.
- They will suffer from harassment of debt collection agencies sometimes calling even when your accounts are up to date but they have an error in their accounting.
- Some even will have their bank account closed because of numerous returned debit orders.
- Financial trouble and stress happens and they begin to fear answering the phone because it is more than likely a debt collector calling.
Experiencing a Debt Crisis is no Joke and very Stressful
When you are under pressure to keep your head under water it, plays havoc on your health, family life and well being. You may have trouble sleeping at night because of the pressures and not know exactly what to do. The only way out is to work out a plan of action to pay off your debt, and you must be disciplined enough to stick to it no matter what! Anyone can become debt free but you must be determined to achieve this.
Get a Sensible Plan of action to Pay off your Debt
This plan of action and goal to be debt free must be faced with persistence, focus, commitment and vision. The simple solutions to pay off your debt are; cut down on your variable, and reckless spending and put the extra money towards all your debt payments. You can even try to earn some extra money if this is possible, and use this extra income to pay off debt. Later on this will become disposable income. There is hope to achieve financial freedom and it is never too late to begin getting out of debt for good!
Pay off your debt in structured steps.
Once you have figured out the maximum amounts you can pay off each month on your debts, start with paying down the debt with the highest interest rate first. This will probably be for most people your credit card balances or a large loan. In the meantime, you must continue to service your other commitments. Pay off your debts one at a time, step by step and you will start seeing light at the end of the tunnel!
Another important point is identifying what are unnecessary expenses and curbing them because these cause money wastage. You can also try and reduce your fixed expenses, take steps to lower your normal household bills like utilities, see whether you can use your mortgage for debt consolidation loans. If your credit record is still good and you have a good payment history, you may consider asking your credit card company to lower the interest rates you are being charged. When you have got your debt under control then take steps to eradicate altogether. This is what debt freedom really is!
There are some excellent guides and programs to help you manage your money and your debt that are very well worth the investment. Although you may be strapped for cash still consider getting this help if you feel confused, overwhelmed and stressed. Good advice will start you on your journey to debt freedom.