collaborative guest post
If you feel trapped by debt, it can seem like you’ll never escape - but that’s not the case. With some careful money management and some expert tips, you can get your finances back under control.
Here are our top 5 smart strategies to control your debt, without any hassle.
Create a clear budget and stick to it
The first thing you need to do is create a clear budget. That means accurately tracking all your expenses, and seeing exactly where your income goes. Prioritise expenses like your mortgage, bills, food, and debts - especially before more frivolous purchases.
Once complete, you’ll have a much better understanding of your financial position, letting you make an informed decision about which expenses you can cut back on.
Now comes the hard part. With your clear budget in place, you need to stick to it. To make it easier, you could even split your money into separate accounts as soon as you get paid, with accounts dedicated to different types of expenses.
Negotiate with creditors for lower interest rates
If you’ve been a responsible customer, it might be worth contacting your creditors and requesting a more favourable interest rate. Often, they’ll be willing to work with you, especially since it helps ensure they’ll continue to receive regular payments.
A lower interest rate or better repayment terms can significantly reduce the amount that you’ll repay, and can help ensure that your payments become more manageable.
Consider a debt management plan
If you have multiple debts, you might want to consider a debt management plan. This is a structured approach that involves working with a debt advisor who negotiates on your behalf. This can result in lower monthly payments to the advisor, who then splits it amongst your unpaid debts.
Consolidate your debts into one payment
When struggling with multiple debts with different repayment dates and interest rates, your best bet might be to consolidate your debts into one payment. You can do this by taking out a personal loan or debt consolidation loan, and paying off all your other debts with the borrowed money.
Bringing all your debts together in one place means that you only need to worry about one repayment per month, which may result in lower monthly payments and smaller interest rates. It also completely removes the stress of having to track multiple debts at the same time, giving you more time to focus on other things.
Cut back on non-essential spending
Perhaps the biggest challenge is to cut back on non-essential spending, especially when we don’t realise that we do it. Reducing impulse buys and cancelling subscriptions are two ways that you can quickly put a little money back in your pocket each month. Perhaps consider keeping your old phone instead of upgrading, or temporarily relying on fewer streaming services.
No matter how you choose to do it, reducing non-essential spending can help you clear your gets faster and give you back your financial freedom.
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