9 Top Tips for Getting Out of Debt
Updated: Jul 1, 2019
Getting into debt is easy. We can all attest to that! Credit card companies and loan companies send mailers, advertise on TV, radio and online promising cheap money and fast!
But what they don’t tell you, is that once you are in debt, getting out of debt is hard. In fact, it’s really, really hard to the point of impossible for some people.
Many of our client’s debt issues are often triggered by a specific event for example, a medical problem, a job loss, a divorce, and it makes paying down debts harder and harder.
Most of our clients in fact want to repay their debts in an honorable way, but it’s a physical impossibility for them to do so which makes life miserable and things spiral out of control.
At DebtKO, we want to help clients reset their debt and get their lives back. So here are our nine top tips for getting out of debt fast.
Recognize You Have a Debt Problem
First things first – and the one that probably brought you to Debtko.com is the fact you recognize and accept that you have a problem with debt. Whether that be too much credit card debt, or medical debts or unsecured loans you can’t pay, this is the first step. Acknowledging that you need to resolve the problem is an important mental step because you are taking control of the issue.
Write All of Your Debts Down on Paper
Getting all of your debts and repayments down on paper is not only a great way to visualize the issue, it will help you see what a potential solution might be. Seeing that you spent hundreds of dollars on interest each month will probably shock you into step 3…
Stop Wasteful Spending
This seems obvious but it’s hard to do. Cut out everything that doesn’t help you look after you and your family e.g. shelter, food, health and work/school. Then eliminate the wasteful spending. Getting out of debt is never going to be easy. But for a period of time, you are just going to have to cut out what is not important and focus on what’s important.
Rank Your Debts
Rank your debts by their interest rates and how much each debt is costing you each month. This will show you what’s eating into your budget and costing you the most money each month.
Make A Budget and Stick to It
What’s coming in each month vs what’s going out. What are you going to be able to afford to pay off each month so you can pay your debt down? This ties into stopping wasteful spending but knowing how much you need vs what you don’t need will be a good exercise.
Set Up Payments to Pay Off Your Debts
With the extra money that you’ve saved from your monthly budget, pay off the high interest debts first. It will save you more money which will then free up even more money to pay off more payments. Take a look at our calculators to find out what might work for you.
Call Your Lenders
Sometimes it’s a good idea to call your lenders and ask for help. Maybe they’ll delay some payments. Maybe they won’t but it can’t harm.
Look at a Consolidation Loan Program or Debt Relief Program
Depending on your personal financial situation and credit score, a debt reduction program may be applicable. Consolidation loans can in fact be a very expensive way to borrow money as they are tied to your credit score and not always a smart thing to do. You can see how much a debt relief program could save you here with the debt settlement calculator.
Get Professional Help From Debtko Today
If you can’t figure out how you will pay off your debts or circumstance just don’t allow you to pay more than minimum payments, call our friendly debt consultants and we’ll help you to establish what is the best way to solve your debt issues and explain which solution you might be better taking. Call us for free on (1) 833 433 2856.