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Being in debt is like living with a dead weight around your neck. No matter what you do, it always hangs over you. It creates stress and constantly reminds you of its presence. It can be a soul sucking experience when you owe a lot of money. It’s so easy to fall into debt too. Our entire economic system is based on lending and borrowing money. Mortgages, credit cards and overdrafts are all part of our everyday life.
If it’s all getting on top of you, you aren’t alone. More and more people find themselves putting everything on their credit card. Especially when they’re strapped for cash. Some have used payday loans and become trapped in a cycle. Don’t worry, there is a way out. Don’t let debt be a black hole that sucks you down further. This post will help you on the way to a debt free life with a few simple tips.
Stop adding to your debt
The first thing to do to turn your life around is immediately stop adding to your debt. The sooner you stop, the sooner you can figure a way out. Cut up all of your credit cards. The important thing to remember is that if you can’t afford something now, you can’t afford it later. This will be the hardest step because often credit cards are your safety blanket. They are part of your routine. But, this is the best thing you can do. Stop spending and then you can make a plan. Don’t ever be tempted by pay day loans if you are already in the red.
Accept the debt and adapt to a more frugal lifestyle
To get out of the red, unfortunately, you must learn to accept it. When the numbers get so high, it’s easy to ignore it. We put it aside and stop opening the credit card letters. We begin to forget how much we owe. Now is the time to face it head on. Open up the letters and make a list. How much exactly do you owe? Write it all down and accept it. Then begin to live in a way that reflects that. That doesn’t mean giving up every luxury. It just means little things like finding coupons online. It means turning heating down a little to save on bills. Make small cuts everywhere and put aside the savings.
Make a repayment plan
In some cases, it’s useful to seek out a debt planner like Jubilee debt advice. In other cases, you can simply make one and stick to it yourself. The first thing to do is call your lenders and speak to them. Don’t be scared of them, they will be more than happy to work out a plan with you. They may help you lower some repayments to make it easier. Never pay off credit cards with other credit cards! Everything needs paying off a little each month, but work out the biggest interest offender. Pay that off first with little payments to the others. When that’s gone, work towards to the next biggest.
With debt, it’s all about taking it one small step at a time. When you picture it as one overbearing monster, it’s easy to run and hide from it. Confront it, make a plan and take it one day at a time. Learn to live a more frugal lifestyle without compromising and set aside a little every week.